How is the Cool Binz franchisee's territory defined?

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The Territory

You will operate the COOL BINZ Business from a location within the Territory that we approve and that will be identified in Summary Page to the Franchise Agreement. Your "Territory" will consist of specific zip-code(s) that have been awarded to you. We identify your Territory zip codes as determined by Census Bureau statistics.

A Territory will have approximately 350,000 - 450,000 people to a maximum of 500,000 people. As of the date of this Disclosure Document, we are utilizing data that has been collected by a national demographics company to determine the number of people in each Territory.

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 will receive certain protected rights in your Territory. No other COOL BINZ Business may establish an office location within your Territory. No other COOL BINZ business may advertise in your Territory in print, media, door-to-door, mass electronic communication, or direct web-based advertising within your Territory. You may experience some indirect/carry-over advertising from other franchisees in media where the reach of advertising is difficult to restrict to zip codes, such as radio or indirect web-based advertising. If and when developed by us, you will receive NORA (defined below in Section 12.4) referrals for your assigned zip codes in accordance with the NORA program requirements. We cannot guarantee your participation in these programs. If you are not compliant with your Franchise Agreement, program requirements, or fail to perform program work adequately, we may direct NORA referrals to another franchisee or ourselves. You will receive Call Center leads for your assigned zip codes. If you are not compliant with your Franchise Agreement, we may direct these leads to another franchisee or ourselves.

You may relocate the Office Site within the Territory at your sole discretion but must immediately notify us of the change in address. During the term of the Franchise Agreement, we will not allow you to relocate the Territory; however, the exact boundaries of the Territory may change in the future, as future zip code changes are made by the United States Postal Service or Census Bureau.

Entering into a franchise agreement does not give you any options to purchase additional franchises, rights of first refusal or any similar rights to obtain additional franchises.

We reserve the right, as we deem appropriate, to:

1. establish solicit, market to and build regional and national account relationships, whose offices may be located in the Territory as is further outlined in the Franchise Agreement;

• 1. offer and sell services and products anywhere that do not comprise a part of the System and, in connection with this right, to exploit our Marks, name, reputation, and know-how.

Source: Item 12 — TERRITORY (FDD pages 45–49)