Does the Crepe De Licious Franchise Agreement grant an exclusive territory?

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ITEM 12 TERRITORY

You must purchase or lease a retail space for your Restaurant or Kiosk which meets our standards and specifications for a Crepe de licious Restaurant or Kiosk ("Approved Location"). We must approve your Approved Location and lease terms before you sign a lease for a location. The Franchise Agreement for your Crepe de licious Franchise grants you the non-exclusive right to operate one Crepe de licious Restaurant or Kiosk from the Approved Location, or a Food Truck within the Territory. If you have not identified an Approved Location for your Restaurant or Kiosk when you sign the Franchise Agreement, as is typically the case, you and we will agree on the Approved Location in writing and amend the Franchise Agreement after you select and we approve the Approved Location. Although we may assist you in selecting a location for your Restaurant, Kiosk, or Food Truck, you are solely responsible for selecting the Approved Location and negotiating the lease or purchase term. You are not guaranteed any specific approved location, and you may not be able to obtain your top choice as your Approved Location. The Approved Location for your Restaurant, Kiosk, or Food Truck will be located within a specific area ("Territory"). The Territory is determined based on the geographic area and population properties within that area and other relevant demographic characteristics and will typically be at least a five mile radius around your Restaurant or Kiosk but will be an assigned list of zip codes for a Food Truck. 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 may also face competition from third party delivery or ghost kitchens related to or utilized by our franchise system. You may not sell products or services, or advertise products or services, within another franchisee's Territory. The Approved Location for a food truck will be located within a specific Territory based on zip codes and will vary depending on the specific market. There may be other specific territorial restrictions

After the Approved Location is identified by you and consented to by us, so long as you are not in default under the Franchise Agreement and all other related agreements, and except as provided in the Franchise Agreement and subject to the reservation of rights below, we, our affiliates, subsidiaries, designees, or any other Franchise shall not operate a Crepe de licious Restaurant or Kiosk or grant a Franchise for the operation of a Crepe de licious Restaurant or Kiosk within the Territory. Though we may have contracted with a third party delivery or ghost kitchen that may operate occasionally within your Territory. You will have no rights to be compensated from these third party sales which may occur within your Territory.

The Approved Location for a Food Truck will be based upon the Territory and will not be exclusive. Any Food Truck Territory may be revised solely in our discretion at any time during the Franchise Agreement.

We, and our affiliates, have the right to operate, and to license others to operate, Crepe de licious Restaurants, Kiosks, and Food Trucks at any location outside the Territory, even if doing so will or might affect your operation of your Crepe de licious Restaurant, Kiosk, and Food Truck. We retain the right, for ourselves and our affiliates, on any terms we deem advisable, and without granting you any rights:

• 1 to own, franchise, establish and/or operate, and license others to establish and operate, businesses using the Marks and System outside of the Territory, regardless of the proximity to your Crepe de licious Restaurant, Kiosk, or Food Truck (even if there may be some impact to your Crepe de licious Business);
• 2 to use the Internet and other means as a channel of distribution for us, and you may not independently market on the Internet or conduct e-commerce without our prior written approval and subject to the policies and procedures in our Operations Manual;

Source: Item 12 — TERRITORY (FDD pages 40–43)