What sources of competition might a City Wide franchisee face?

You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that CITY WIDE or its affiliates own, or from other channels of distribution or competitive brands that CITY WIDE or its affiliates control.

You also acknowledge and agree that CITY WIDE and its Affiliates reserve the right to:

• 1. Establish and/or license other Franchised Businesses at any location outside of the Designated Territory as CITY WIDE deems appropriate.
• 1. Establish and license others to establish businesses under other systems using the Marks or other proprietary marks, which businesses may be located within or outside the Designated Territory, provided, however, that, except as specifically provided in the Franchise Agreement, CITY WIDE will not license or establish a business substantially similar to the Franchised Business and using the Marks within your Designated Territory.
• 1. Sell the services, products, materials and related equipment authorized for your Franchised Business under other trademarks, service marks and commercial symbols through similar or dissimilar channels of distribution and under terms CITY WIDE deems appropriate within and outside your Designated Territory.
• 1. Advertise and sell the services, products, materials, and related equipment authorized as associated with your Franchised Business under the Marks through dissimilar channels of distribution including, without limitation, by electronic means such as the Internet and websites CITY WIDE establishes and under terms CITY WIDE deems appropriate within and outside your Designated Territory.
• 1. Advertise the System on the Internet and create, operate, maintain and modify, or discontinue the use of one or more websites using the Marks.
• 1. Acquire the assets or ownership interest of one or more businesses providing services, products, materials and related equipment like those provided at your Franchised Business, and franchise under a service mark or trademark other than CITY WIDE's Marks, license or grant the right to others to operate those businesses once acquired, regardless of whether these businesses are located or operating within your Designated Territory.
• 1. Be acquired by a business providing services, products, materials and equipment like those provided at your Franchised Business, even if such business operates, franchises and /or licenses competitive businesses in your Designated Territory.
• 1. Maintain the National Business Development Program. If you do not participate in the National Business Development Program or are unable to fully service a National Account in your Designated Territory, CITY WIDE, an Affiliate, or a third party CITY WIDE designee (including another CITY WIDE franchisee) may provide the services necessary to fulfill a National Account in your Designated Territory and you will not be entitled to any compensation in connection with that transaction. CITY WIDE currently uses its affiliate, Areté Facility Management, LLC, to provide these services.

Source: Item 12 — TERRITORY (FDD pages 36–39)