Can Zoomin Groomin alter my franchise territory if the population increases within it?

Continuation of your territorial rights does not depend on achieving a certain sales volume, market penetration, or other contingency, and we may not alter your franchise Territory, even if there is a population increase in your Territory. However, your right to operate a Franchised Business in the Territory are subject to certain rights reserved by us. We, our parent, and our affiliates reserve all rights not expressly granted in the Franchise Agreement. For example, we, our parent, and our affiliates have the right to:

• (a) use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing sales, to solicit or accept customers within your Territory using our principal trademarks (or another trademark) without any compensation to you;
• (b) to implement cross-territorial protocols and other guidelines applicable to such situations as group advertising buys by multiple franchisees which may extend into multiple territories, solicitation of orders of individuals who may reside in one Territory, yet work in another, and other cross-territorial situations;
• (c) to establish and operate, and grant rights to others to establish and operate a Franchised Business or similar businesses at any locations outside of the Territory and on any terms and conditions we deem appropriate;
• (d) to own, develop, acquire, be acquired by, merge with, or otherwise engage in any transaction with another businesses (competitive or not), which may offer products and services like your Franchised Business and may have one or more competing outlets within your Territory, however, we will not convert any acquired business in your Territory to a franchise using our primary trademarks during the Term of your Franchise Agreement;
• (e) to operate or franchise a business under a different trademark which such business sells or will sell goods or services like those you will offer, anywhere;
• (f) to negotiate purchase agreements with vendors and suppliers which we reasonably believe are for the benefit of our franchisees; and,
• (g) to engage in any other business activities not expressly prohibited by the Franchise Agreement, anywhere.

Our affiliate Purely Pet LLC d/b/a Salty Dawg franchises a business under the Salty Dawg marks, which sell goods or services similar to those you will offer. Salty Dawg franchisees offer brickand-mortar pet grooming services and related products (as opposed to mobile), which may include soliciting or accepting orders from customers within your Territory. Salty Dawg does not currently operate any company owned outlets, but they may do so in the future. Salty Dawg and Zoomin Groomin share the same principal business address, but their staff maintain physically separate offices and they provide training at different times or at different facilities. We plan to avoid and resolve conflicts between us and our franchisees and between the franchisees of each system regarding territory, customers, and franchisor support, by establishing limited contractual rights, extending the opportunities to existing franchisees, and by developing internal systems and processes. However, we will ultimately be the sole determiner as to conflicts regarding territory, customers, and franchisor support. Salty Dawg and Zoomin Groomin share the same principal business address, but their staff maintain physically separate offices and they provide training at different times or at different facilities.

Source: Item 12 — TERRITORY (FDD pages 32–34)