Does Card My Yard retain rights within the Protected Area?

ilable, we or one of our other franchisees may provide services to those consumers during such times.

• C. Reserved Rights and Minimum Gross Sales Requirements. The rights granted to you under this Agreement are nonexclusive, and we and our Affiliates have and retain all rights within and outside the Protected Area except those expressly granted to you. Accordingly, we, our Affiliates, and any other authorized person or entity will have the right, among others, (i) to operate, and license others to operate, Card My Yard businesses at any location outside the Protected Area, including locations that are adjacent to or surrounded by the Protected Area; (ii) within and outside the Protected Area to develop and establish other business systems (including systems that distribute products or services similar to those offered at Card My Yard businesses) using other names or marks and to grant licenses to use those systems; (iii) to advertise and promote the System in the Protected Area; (iv) to acquire, or be acquired by, any competing system or other third party, including a competing system that has one or more units located within your Protected Area; and (v) except for the restriction in Section II.B. against the establishment of another Card My Yard business in the Protected Area, to engage, directly or indirectly, at wholesale, retail or otherwise, in the production, distribution, license and sale of any and all similar or dissimilar services and products, under the Marks or under other names or marks, within and outside the Protected Area, through any other method of distribution, including, but not limited to, mail order catalogs and the Internet, regardless of the competitive impact on the Card My Yard business. We also reserve the right to reduce or eliminate your territorial rights within the Protected Area if you fail to achieve annual Gross Sales of at least $15,000. In order to maintain your territorial rights as described in Section II.B above, you must meet or exceed Gross Sales of $15,000 during each 12-month period throughoutthe term of this Agreement. During that period comprising your first 12 months of operation, your Gross Sales requirement shall instead comprise $5,000, with the period from your 13th month of operation through the completion of your 24th month of operation being accompanied by a Gross Sales requirement of $10,000. Thereafter, the standard Gross Sales requirement of $15,000 during each 12-month period shall apply. If you fail to achieve the minimum Gross Sales level during any applicable

Source: Item 23 — RECEIPTS (FDD pages 84–259)