Under what condition does the alternative post-term non-competition covenant apply to Annex Brands franchisees?

As an alternative to Subsection 3(b)(iii) above, and only if the applicable former Center is located in a state whose public policy disfavors the enforceability of postterm non-competition covenants against franchisees, then on the Conclusion of the Franchise under the Franchise Agreement, in accordance with the time period and geographic restrictions set forth below, Covenantor will not directly or indirectly (such as through corporations or other entities controlled by Covenantor or by, through or in conjunction with, any other individual person or persons including but not limited to Covenantor's spouse if any, relatives, employees or business affiliates), own, maintain, engage in, be associated with, be employed by, advise, assist, invest in, be landlord to, franchise, make loans to, or have any interest in any business which is the same, competes with, or is substantially similar to Franchisee's Center, and:

• i. which sells packaging and shipping services (which constitute only a limited portion of all products and services sold by Franchisee's Center);

• ii. which is located at the premises of Franchisee's Center; and

• iii. with such partial restriction limited to a six (6) month period following the Conclusion of the Franchise under the Franchise Agreement.

Source: Item 22 — Contracts (FDD pages 109–110)