Can Craters & Freighters operate or franchise outlets outside of a franchisee's territory?

itory are entitled the freedom to choose any Craters & Freighters outlet which they believe will best serve them and their needs, and that they may seek service from Franchisee.

• 1.5 Non-Exclusivity; Franchisor's Reservation of Rights. Franchisee acknowledges that the franchise granted hereunder is non-exclusive and that Franchisor and its Affiliates retain the exclusive right, among others to:

• 1.5.1 Own, franchise, or operate Craters & Freighters outlets at any location outside of the Territory, regardless of the proximity to the boundaries of the Territory; provided, however, Franchisor will not establish within the Territory another franchisee or company-owned outlet which may also use the Marks;
• 1.5.2 Use the Marks and System to sell any products or services similar to those which Franchisee will sell, through any alternate channels of distribution within or outside of the Territory, including to National Accounts (as defined below). 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. Franchisor exclusively reserves alternative channels of distribution such as the Internet, catalog sales, telemarketing or other direct marketing, as channels of distribution for Franchisor. Franchisee may not independently use alternative channels of distribution to make sales within or outside the Territory without Franchisor's prior written approval;
• 1.5.3 Use and license the use of other proprietary and non-proprietary marks or methods which are not the same as or are confusingly similar to the Marks, 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 Franchisee's Franchised Business;
• 1.5.4 Purchase or be purchased by, or merge or combine with, any business, including a business that competes directly with Franchisee's Franchised Business, wherever located, so long as such business does not operate under the same or similar trademarks or service mark;
• 1.5.5 Acquire and convert to the system operated by Franchisor 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
• 1.5.6 Implement multi-area marketing programs, including but not limited to a National Accounts program.
• 1.6 Best Efforts. Franchisee agrees to at all times faithfully, honestly, and diligently perform Franchisee's obligations hereunder and to exert Franchisee's best efforts to promote, develop, and expand the business of the Franchised Business.

2. TERM OF AGREEMENT.

• 2.1 Initial Term. This Agreement will begin on the Effective Date and will expire fifteen (15) years from such Effective Date (collectively, the "Initial Term"), unless sooner terminated or extended as hereinafter provided.
• 2.2 Successor Term. Franchisee will have the right to renew the Franchise for an additional term of fifteen (15) years ("Successor Term") by entering into Franchisor's then current form of Franchise Agreement ("Successor Franchise Agreement"), which may include terms and conditions materially different from those in this Agreement, so long as all of the following conditions have been met:
  • 2.2.1 Franchisee has adhered to all the terms and conditions of this Agreement and any other requirements or standards established in the Operations Manuals (as such term is defined below), including but not limited to complying with all System Standards (as such term is defined below).
  • 2.2.2 Franchisee has given notice of renewal to Franchisor in accordance with Section 2.3 of this Agreement.

Source: Item 22 — CONTRACTS (FDD pages 49–50)