Can Clean Your Dirty Face franchisees face competition from other franchisees?

You will not receive an exclusive territory under the Franchise Agreement. 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 have no options, rights of first refusal or similar rights to acquire additional franchises.

We (and our affiliates) retain all rights with respect to the placement of CYDF Facial Bars and other businesses using the Marks, the sale of similar or dissimilar products and services, and any other activities. These rights include:

• (1) the right to establish and operate, and allow others to establish and operate, other CYDF Facial Bars and other businesses using the Marks, or the Franchise System, at any location and on any terms and conditions we approve;
• (2) the right to establish and operate, and allow others to establish and operate, additional concepts or businesses providing products or services similar to those provided at CYDF Facial Bars anywhere and under any trade names, trademarks, service marks and commercial symbols;
• (3) the right to establish, and allow others to establish, other distribution channels (including, the Internet, catalog sales, telemarketing, other direct marketing sales, or retail stores) wherever located or operating regardless of the nature or location of the customers, with whom such other distribution channels do business, that operate under the Marks or any other trade names, trademarks, service marks or commercial symbols that are the same as or different from CYDF Facial Bars and that sell products and/or services that are identical or similar to, and/or competitive with, those that CYDF Facial Bars customarily sell under any terms and conditions we approve;
• (4) offer and sell (and grant others to offer and sell) goods and services to customers located anywhere;
• (5) the right to acquire, or be acquired by (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction) a business providing products and services similar to those provided at CYDF Facial Bars, even if such business operates, franchises and/or licenses competitive businesses; and
• (6) engage in all other activities not expressly prohibited by the Franchise Agreement.

We are not required to pay you if we exercise any of the rights specified above.

Source: Item 12 — TERRITORY (FDD pages 39–40)