Does Afuri Ramen Dumpling grant territorial protections in the Search Area?

Subject to our reservations of rights in the Franchise Agreement, we will not establish or allow others to establish an Afuri business physically located within your Development Area using our Marks and System so long as the Franchise Agreements and corresponding Multiple Franchise Purchase Addenda are in force and you are not in default in any material provision of any such agreement. Upon termination of expiration of this Addendum (under Section 8 below), your rights with respect to the Development Area will automatically terminate.

• 1. Franchise Premises and Franchise Territory. The Franchise Territory for each franchise will be designated by us before you open each relevant Franchise Premises. The Franchise Territory and your Franchise Premises must be in the United States of America, legally available pursuant to state and federal franchise and business opportunity disclosure and registration laws and pursuant to our contractual commitments (including those with our other franchisees) and in compliance with our franchise placement, market development and demographic criteria.

• 1.7 Rights We Reserve.

We retain all rights not specifically granted to you under this Agreement.

We retain the right, in our sole discretion and without granting any right to you:

• A. to use or license the use of the Marks or any other trademarks, service marks, logos or commercial symbols to anyone, and for any purpose, and at any location (except that we will not place an Afuri restaurant with your Franchise Territory).

• B. to sell products or services anywhere, including within the Franchise Territory, using the Marks or different marks, through channels of distribution other than the Afuri restaurant franchise granted to you by this Agreement.

We will have no obligation to compensate you for any such sales made within your Franchise Territory.

For example, we may place Afuri establishments in airport and mall food courts, stadiums, and similar limited access environments in your Franchise Territory and regardless of the location of other Afuri operations.

We may place present and future Afuri products for sale in grocery stores and food markets at any location, whether or not within the Franchise Territory or within close proximity to an Afuri franchise.

Other distribution methods may also include internet sales, telephone sales, catalogue sales, sales via online marketplaces (such as Goldbelly.com, for example), and sales by other means.

• C. to reserve the exclusive right to use the Internet to promote the Marks and to offer and sell Afuri-related products and services.

You may not independently market on the Internet, conduct e-commerce, or make sales via online marketplaces except as otherwise allowed by us in the Operations Manual.

• D. to locate Afuri company-owned and franchised restaurant locations anywhere outside of your Franchise Territory.

Source: Item 23 — Receipts (FDD pages 50–189)