Will a Dryject franchisee receive an exclusive territory?

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 not solicit or accept customers from outside of your Designated Territory without our prior written approval. You may solicit and accept customers only from companies or persons located within your Designated Territory. You may not solicit or accept customers from outside your Designated Territory by using other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing, to make sales outside of your Designated Territory without our prior written approval. If you accept customers or business from outside your Designated Territory, which customer or business is located in another Franchise Owner's designated territory, then we have the right to require you to send all of your Gross Revenues you earned in that designated territory to the Franchise Owner who operates within the designated territory where the customer is located. However, you may accept business resulting from referrals or unsolicited inquiries from customers outside your Designated Territory if they are not in another Franchise Owner's designated territory.

The Franchise Agreement grants you the right to operate a Franchised Business only within a Designated Territory. You must select a Territory, subject to our approval. Our approval will be based upon a variety of factors, including the viability of the proposed territory in relation to the number of golf courses, the number of potential parks and recreation facilities, junior and senior high schools, colleges and universities and other large areas of turf which could benefit from the services offered by the Franchise Owner. You will receive a Designated Territory based on an area sufficient to encompass a minimum of the equivalent of 200 eighteen-hole golf courses within the boundaries of the proposed territory.

If you remain in compliance with your Franchise Agreement, we will not operate or grant franchises for a similar or competitive business under the Marks within your Territory (as described in Addendum A of the Franchise Agreement). However, we and our affiliates may operate businesses or grant franchises for any locations within or outside your Designated Territory, if they are operated under a different name or if they offer different goods and services. We and our affiliates also have the right to acquire, be acquired by, or merge with other companies which provide turf aeration services and related businesses, and other related services anywhere (including inside or outside of the Designated Territory) and, even if such businesses are located in the Designated Territory, the other businesses may continue to operate under another name. We will not compensate you for any of our activities including soliciting or accepting business in your Designated Territory, even if they have an impact on your Franchised Business.

Source: Item 12 — TERRITORY (FDD pages 33–34)