To what extent is the Apricot Lane territory protected?

above.

ITEM 12 TERRITORY

You have the right to operate the APRICOT LANE Store at a specific location within the Territory described in the Franchise Agreement. If no specific location is identified when the Franchise Agreement is signed, you have the right to establish your business in the future at a mutually agreed upon site under the Open License Addendum described in Item 11.

While there is no minimum size for a Territory, we typically will define a Territory as follows:

• 1. If your Store is inside an enclosed mall, the Territory is limited to the mall property.
• 1. For Stores that are part of a larger facility, the Territory is limited to the shopping center, entertainment complex, tourist attraction (e.g., amusement park, museum, etc.) or other facility in which the site is located.
• 1. For Stores at stand-alone locations, the Territory is typically defined as a 1-2 mile radium from the Store, but will depend on the market.

The Territory is only protected to the extent that neither COUNTRY VISIONS nor any affiliate will locate either a company-owned or franchised APRICOT LANE within your Territory during the term of the Franchise Agreement.

You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. We (and our affiliates) retain the right during the term of the Franchise Agreement to engage in any and all activities that we (and our affiliates) desire, any time or place, and whether or not these activities compete with the Franchised Business, including the right to:

• (1) sell and authorize other parties to sell merchandise, including merchandise bearing the Marks or any similar or related names or marks, to independent retail outlets, at wholesale, at retail to the general population and by means of catalogs, mail order, home parties, Internet and/or television buying networks and/or clubs, whether within or outside of the Territory;
• (2) establish and operate and authorize other parties to establish and operate Stores, the physical premises of which are located outside of the Territory, on any terms and conditions we deem appropriate;

• (3) develop, acquire, establish, operate and franchise any retail or other businesses operating under marks other than the Marks at any location, including within the Territory; and
  • (4) engage in all other activities that the Franchise Agreement does not expressly prohibit.

The Territory is not exclusive. You may face competition from other franchisees, from franchisor owned outlets or from other channels of distribution or competitive brands franchisor controls.

You may operate the Franchised Business only at the location specified in the Franchise Agreement unless we agree otherwise.

Source: Item 12 — TERRITORY (FDD pages 30–32)