Does Engineering For Kids grant exclusive territories to franchisees?

es for violations of the Territory Rules.

Territorial Rights and Rights We Reserve

You will not receive an "exclusive" Territory. You may face competition from outlets that we own or from other channels of distribution or competitive brands that we control.

We do, however, provide you with the territorial rights and protections within your Territory described in this paragraph. During the term of the Franchise Agreement, and except as otherwise provided in that agreement, we will not (a) operate (or grant a franchise to anyone else to operate) an Engineering For Kids Business that is physically located within the same Territory that we granted to you; and/or (b) grant an Engineering For Kids franchise to any other party that is for the same territory that we have assigned to you as your Territory under this Agreement.

Except for those rights and territorial protection granted to you (described in the preceding paragraph), we (and our affiliates) retain all other rights that we do not expressly grant to you in the Franchise Agreement. As a result, we will have the right (among other things), on any terms and conditions that we deem advisable, and without granting you any rights, to conduct any business activities, under any name, in any geographic area (including within the Territory), and at any location, regardless of the proximity to or effect upon your Engineering For Kids Business. For example, we have the right to:

• (a) Establish, and license others to establish and operate, Engineering For Kids Businesses at any location outside the Territory (regardless of their proximity to the Territory or any Authorized Locations or their actual or threatened impact on sales at your Franchised Business);
• (b) Establish, and license others to establish and operate, businesses and programs under other systems or other proprietary marks, which businesses or programs may offer or sell services and products that are the same as, similar to, or different from the Programs offered from the Franchised Business, and which businesses or programs may be located inside or outside the Territory (regardless of their proximity to the Territory or Authorized Locations or their actual or threatened impact on sales at your Franchised Business);
• (c) Establish, and license others to establish, Engineering For Kids Businesses at any Large Accounts (as that term is defined below) inside or outside the Territory (regardless of their proximity to the Territory or Authorized Locations or their actual or threatened impact on sales at your Franchised Business);
• (d) Acquire and operate any business or program of any kind, whether located inside or outside the Territory (regardless of their proximity to the Territory or Authorized Locations or their actual or threatened impact on sales at your Franchised Business) so long as any such business is not an Engineering For Kids Businesses operated from a location inside the Territory;
• (e) Provide and conduct Special Event Services to customers located within the Territory, including customers who attend Programs of your Franchised Business, if you do not offer or otherwise exercise your right to provide Special Event Services; and
• (f) Sell products and services using the Proprietary Marks or otherwise through alternative distribution channels, including e-commerce, at any location, including

inside or outside the Territory. We will not, however, sell or license directly to schools located in your Territory the curriculum, which we license to Engineering For Kids Businesses as part of the Proprietary Materials for franchisees' use in conducting the Programs, for the purpose of allowing such schools to use that curriculum to conduct the Programs directly with their students in the schools.

Continuation of your franchise or territorial rights does not depend on your achieving a certain sales volume, market penetration, or other contingency, other than satisfying the "Minimum Performance Standards" described below and remaining in compliance with the Franchise Agreement.

Source: Item 12 — TERRITORY (FDD pages 36–41)