Does the designation of a Franchised Location or Protected Area for a Bambu franchise grant exclusive rights to any particular market or customers?

The designation of your Franchised Location, Protected Area or, if applicable, Development Area, does not grant you the exclusive right to any particular market or customers. You may advertise your Bambū shoppe in any geographic area and you may serve all customers who enter your shoppe, subject to reasonable restrictions and policies as we may place on your activities which may include restrictions and policies regarding: (1) electronic advertising (including Internet advertising); (2) the content, methods, media and means used to advertise, market and promote your shoppe; and (3) limitations on advertising, marketing or conducting business in areas outside of your Protected Area. Other Bambū franchisees have the same rights to conduct advertising anywhere and provide programs and products to all persons who enter their shoppes, subject to any restrictions set forth in our FRC Materials. You may not use other channels of distribution such as the Internet, catalog sales, telemarketing or other direct marketing to make sales outside of your Protected Area without our prior written consent.

We, our affiliates and successors retain the following rights, among others, without payment of compensation to you, under the Franchise Agreement and MUD Agreement:

1. To use and to license others to use, the Marks and Bambū system in connection with the operation of a Bambū shoppe, at any location other than the Protected Area and, if applicable, within your Development Area;

To use the Marks to identify any type of products and services, promotional and marketing efforts or related items, and to identify products and services distributed or otherwise made available through alternative channels of distribution (other than Bambū shoppes), at any location, including sales through channels such as retail or wholesale distribution, Internet marketing and distribution, social media marketing, mail order, catalog, retail store display, or made-to-order or pre-packaged product sales in grocery stores;

To use and license the use of different proprietary marks or methods (for example, if we acquire or are acquired by another business that provides products and services similar to or the same as a shoppe) in connection with the sale of products and services similar to or the same as those which you sell, whether in alternative channels of distribution or through owning, developing, operating or franchising stores which are the same as, or similar to, or different from Bambū shoppes, at any location, and on any terms and conditions as we determine, although we have no present plans to do so;

To use and to license others to use the Marks and Bambū system to establish restaurants similar to Bambū shoppes that service walkup and drive-thru customers but without indoor seating (a "Drive-thru shoppe"), at any location, including in your Protected Area and, if applicable, in your Development Area; provided that if we desire to open or permit someone else to open a Drive-thru shoppe in your Protected Area or Development Area, we will give you a right of first refusal to participate in the Drive-thru shoppe with either partial or whole ownership thereof;

To use and license others to use the Marks and Bambū system to establish shoppes at Institutional Facilities at any location, including in your Protected Area and, if applicable, in your Development Area. "Institutional Facilities" means outlets that serve primarily customers located within a captive facility, such as parks charging admission, stadiums, amusement parks, theaters, art centers, airports, transportation facilities, department stores, business and industrial complexes, museums, educational facilities, hospitals, military complexes, buyer club facilities, casinos, resorts, hotels and convention centers; and

To engage in any other activities not expressly prohibited in the Franchise Agreement or MUD Agreement, if applicable, including operating or granting any third party the right to operate, any Bambū shoppe that we or our designees acquire as a result of the exercise of a right of first refusal or purchase right that we may have been granted at any location.

Source: Item 12 — (FDD pages 38–40)