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What Is A Franchisor's "Affiliate" Under The Federal Franchise Rule?

Under the Federal Franchise Rule an affiliate is defined as a person:

  • Which directly or indirectly controls, is controlled by, or is under common control with, a franchisor; or
  • Which directly or indirectly owns, controls, or holds with power to vote, 10 percent or more of the outstanding voting securities of a franchisor;
  • Which has, in common with a franchisor, one or more partners, officers, directors, trustees, branch managers, directors, trustees, branch managers, or other persons occupying similar status or performing similar functions.

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