Can Crisp & Green establish Crisp & Green Restaurants outside the Designated Area that directly compete with a franchisee's restaurant?

or grant to a third party the right to establish, a CRISP & GREEN Restaurant physically located within your Designated Area. You acknowledge and agree that we and our Affiliates have the right to develop and operate and grant others the right to develop and operate CRISP & GREEN Restaurants outside the Designated Area, regardless of their proximity to the Designated Area or any negative impact they may have on your Franchised Restaurant.

2.03 Our Reservation of Rights. Other than as set forth in Section 2.02 above, we and our Affiliates (and our respective successors and assigns, by purchase, merger, consolidation or otherwise) retain all rights and discretion with respect to the Marks, the System, the sale of products and services similar or dissimilar to those offered by CRISP & GREEN Restaurants, and the operation or franchising of CRISP & GREEN Restaurants anywhere located or to be located, and may engage in any business activities whatsoever, within or outside the Designated Area, whenever and wherever we desire. Specifically, by way of example and without limitation, we reserve the following rights: (a) to establish and

operate, and grant to others the right to operate, CRISP & GREEN Restaurants physically located outside the Designated Area, on such terms and conditions as we deem appropriate (you acknowledge that such CRISP & GREEN Restaurants may be in direct competition with your Franchised Restaurant, without regard to any adverse effects of such activities on your Franchised Restaurant and without any obligation or liability to you), which includes the right of us and others to perform Catering Services or Delivery Services in your Designated Area; (b) to establish and operate, and grant to others the right to operate, CRISP & GREEN Restaurants, or other restaurants using any part or all of the System and/or Marks, that are located at or operated from Non-Traditional Sites within or outside the Designated Area; (c) to sell any products or services under the Marks or under any other trademarks, service marks or trade dress, through alternative channels of distribution, wherever located or operating (including, without limitation, the internet or similar electronic media and physical outlets like kiosks, convenience stores or supermarkets); (d) to establish and operate, and grant to others the right to operate, restaurants identified by trademarks, service marks or trade dress, other than the Marks (including the CRISP & GREEN name and mark), pursuant to such terms and conditions as we deem appropriate and wherever such restaurants are located, which restaurants may be located within the Designated Area; (e) to acquire the assets or ownership interests of one or more businesses providing products and services similar or dissimilar to those provided at CRISP & GREEN Restaurants, and to franchise, license or create similar arrangements with respect to these businesses once acquired, and which businesses we may (at our sole discretion, and without obligation) convert, or allow to be converted, to operations as CRISP & GREEN Restaurants using any of the Marks and/or the System, wherever these businesses (or the franchisees or licensees of these businesses) are located or operating (including in your Designated Area, if applicable); and (f) to be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction), by a business providing products and services similar to those provided at CRISP & GREEN Restaurants, or by another business, even if such business operates, franchises and/or licenses Competitive Businesses in the Designated Area.

Source: Item 23 — RECEIPTS (FDD pages 66–252)