How is the Designated Area for a Central Bark Doggy Day Care franchise determined?

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We also may offer additional or refresher training courses and require you (or your Managing Owner) and other employees to attend these courses, including courses and programs provided by third-parties we designate. These courses may be conducted at our headquarters or at any other locations selected by us, or virtually, in our determination, and will be offered at the times we designate. You must pay all costs and expenses you and your employees incur when attending the training courses, including, without limitation, costs of travel, living expenses, and wages.

ITEM 12

TERRITORY

Franchise Agreement:

While your Franchise Agreement is in effect and you are not in default, we will not operate or license another CENTRAL BARK facility within your designated territory (the "Designated Area"). The Designated Area will be determined by us and will generally include approximately 20,000 households. It may be defined by a radius around your location, zip codes, municipal boundaries, or natural or man-made features such as rivers or highways, and will be identified on a map attached to your Franchise Agreement. If your site has not been selected at the time of signing, the Designated Area will be established after you secure a site and execute a lease approved by us. Your rights to the Designated Area are not contingent on achieving specific sales volumes or other performance metrics.

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 reserve the right to: (1) operate or license CENTRAL BARK facilities outside your Designated Area; (2) operate or license businesses offering similar services under different marks, including within your Designated Area and on such terms and conditions as we deem appropriate; (3) sell branded and non-branded products authorized for CENTRAL BARK facilities under the Marks or other marks through any distribution channel; (4) solicit sales via catalog, direct mail, online platforms, or other means, including within your Designated Area; (5) acquire, merge, combine with, or be acquired by businesses offering similar services, regardless of location and even if such business operates, franchises and/or licenses competitive businesses in the Designated Area; and (6) engage in any other activities not expressly prohibited by the Franchise Agreement. We are not required to pay you if it exercises any of the rights specified above inside or outside your Designated Area.

You must operate the Franchised Business only at the approved location and may not relocate without our prior written consent, which we will not unreasonably withhold. Relocation requests are subject to our approval process and a mutually agreed-upon timeline. You may not engage in catalog, internet, or other direct marketing without our written consent. You do not have an option, right of first refusal, or similar right to acquire additional franchises in or near your Designated Area. We do not currently operate or plan to operate a competing business under a different trademark, but we are not required to compensate you if we do so.

Multi-Unit Franchise Agreement

Under the MUFA, 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. You may face competition from other franchisees, company-owned outlets, or other brands and distribution channels we control. However, while the MUFA and all related Franchise Agreements remain in effect and you are in compliance, we will not establish or license another CENTRAL BARK facility within your Multi-Unit Territory, except as described below.

The Multi-Unit Territory will be described in Addendum 1 to the MUFA and may be defined by zip codes, municipal boundaries, or natural or man-made features. The size and configuration of the territory will be determined by us based on factors such as demographics, traffic patterns, competition, your operational capacity, site availability, and other economic and market factors and will be mutually agreed upon before signing the MUFA. Your exclusivity is not conditioned on sales performance, but failure to meet your Development Schedule constitutes a material breach and may result in termination of the MUFA. Upon expiration or termination of the MUFA, your territorial rights end, and your rights will be limited to any CENTRAL BARK facilities you continue to operate under valid Franchise Agreements.

We and our affiliates retain the right to: (1) use and license the Marks and CENTRAL BARK system outside your Multi-Unit Territory; (2) use or license other marks for different operations, including within your Multi-Unit Territory;

Source: Item 12 — Territory (FDD pages 32–34)