affiliate
Definition
An affiliate is a company or person that has a meaningful ownership connection or controlling relationship with another business. Think of it as a family tree for businesses, where one company owns a chunk of another, or both companies share the same parent owner.
Example
If you own 60% of a bakery and also 60% of a coffee shop, those two businesses are affiliates of each other because the same person controls both.
Watch Out
Contracts often treat you and your affiliates as one unit, meaning a deal you sign could bind your other businesses too.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.