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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.
Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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