What is Attachment A to the Creative Colors franchise agreement?
Creative_Colors Franchise · 2025 FDDAnswer from 2025 FDD Document
The determination of the Area of Primary Responsibility shall be made and agreed upon between Franchisor and Franchisee, and shall be set forth in Attachment A.
- C.
Franchisor will not, so long as this Agreement is in force and effect and Franchisee is not in default under any of the terms hereof or except as provided in this Paragraph C. and in Paragraph H below, franchise or operate any other business that provides similar services under the CREATIVE COLORS INTERNATIONAL marks or under different marks, within the Area of Primary Responsibility which is described in Attachment A of this Agreement.
However, Franchisor has the right to grant such other franchises outside of the Area of Primary Responsibility as Franchisor, in its sole and exclusive discretion, deems appropriate.
Further, both within and outside of the Area of Primary Responsibility, Franchisor reserves the right to offer and sell at wholesale or retail (or any other species of retail vendor whatsoever) products and services, and CREATIVE COLORS INTERNATIONAL Proprietary Products, if any, as defined in Paragraph XIII.G. hereof, which comprise, or may in the future comprise a part of the System, which products may be resold at retail to the general public by such entities.
Franchisor further reserves the right both within and outside the Area of Primary Responsibility to sell both wholesale and retail all products and services which do not comprise a part of the System.
Those products and services which comprise a part of the System are delineated and set forth in detail in the CREATIVE COLORS INTERNATIONAL Confidential Operations Manual, Sales & Marketing Manual and Training Manual ("Confidential Manuals"), which Confidential Manuals may be amended from time to time to reflect additions to, deletions from and modifications to the specification of those services and products which comprise a part of the System.
Source: Item 23 — RECEIPT (FDD pages 69–217)
What This Means (2025 FDD)
According to the 2025 Creative Colors Franchise Disclosure Document, Attachment A to the franchise agreement specifies the franchisee's Area of Primary Responsibility. This area is determined and agreed upon by both Creative Colors and the franchisee.
The Area of Primary Responsibility is defined by a population of approximately 500,000 people, delineated by zip code and/or street boundaries. This means that Creative Colors franchisees are granted an exclusive territory to operate within, preventing the franchisor from establishing another similar franchise in the same area.
This exclusivity is conditional; it remains in effect as long as the franchise agreement is valid and the franchisee is not in default. Creative Colors retains the right to grant other franchises outside the Area of Primary Responsibility. They also reserve the right to sell products and services, including CREATIVE COLORS INTERNATIONAL Proprietary Products, at wholesale or retail, both within and outside the Area of Primary Responsibility. The specific products and services that are part of the Creative Colors system are detailed in the Confidential Operations Manual, Sales & Marketing Manual, and Training Manual, which may be updated periodically.