Can Craters & Freighters own, franchise, or operate businesses outside of a franchisee's territory?

We reserve the right, among others:

• (1) to own, franchise, or operate Craters & Freighters Franchised Businesses at any location outside of your Territory, regardless of the proximity to the boundaries of your Territory.

We will not establish within your Territory another franchisee or company-owned outlet which may also use our trademarks;

• (2) to use our trademarks and system to sell any products or services similar to those which you will sell, through any alternate channels of distribution within or outside of your Territory, including to national accounts.

This includes, but is not limited to, other channels of distribution such as television, mail order, catalog sales, wholesale to unrelated retail outlets, or over the Internet.

We exclusively reserve alternative channels of distribution such as the Internet, catalog sales, telemarketing or other direct marketing, as channels of distribution for us.

We are not required to compensate you if we solicit or accept orders from your Territory.

You may not independently use alternative channels of distribution to make sales within or outside your Territory without our prior written approval;

• (3) to use and license the use of other proprietary and non-proprietary marks or methods which are not the same as or confusingly similar to our trademarks, whether in alternative channels of distribution or in the operation of a business offering shipping, packaging, crating, receiving and delivery, storage, transportation, moving, logistics, blanket wrap, and freight forwarding services and products, at any location, including within the Territory, which may be similar to or different from the business operated by you;

• (4) to purchase or be purchased by, or merge or combine with, any business, including a business that competes directly with your Franchised Business, wherever located, so long as that business does not operate under the same or similar trademarks or service marks as the Marks (as such term is defined below);

• (5) to acquire and convert to the System operated by us any businesses offering shipping, packaging, crating, receiving and delivery, storage, transportation, moving, logistics, blanket wrap, and freight forwarding services and products, including such businesses operated by competitors or otherwise operated independently or as part of, or in association with, any other system or chain, whether franchised or corporately owned and whether located inside or outside of the Territory; and

• (6) to implement multi-area marketing programs which may allow us or others to solicit or sell to customers anywhere (national accounts).

We also reserve the right to issue mandatory policies to coordinate these multi-area marketing programs.

Currently, neither we, nor any Affiliate of ours, operates, intends to operate, franchises another business, or intends to franchise another business, under a different trademark which sells goods or services that are the same as or similar to those you will sell, but we and our Affiliates reserve the right to do so in the future.

Source: Item 12 — TERRITORY (FDD pages 29–32)