2.    GRANT OF FRANCHISE


The Company grants to the Regional Franchisor, an exclusive right in the Region to conduct business as a Regional Franchisor under the Business Name to licence others in the terms of the Sub-Franchise Deed to use the business name, the systems, the logo, trade marks and all identifying marks or symbols of or relating to the Company's business which relate to the franchise of businesses under the style of "ABC COMPANY" and the Company will do all necessary things and execute all documents to enable this grant from Commencement Date for the Term hereof and otherwise on the terms and conditions contained herein.

3.    REDEFINITION OF TERRITORY

The Company may redefine the Territory by reduction or expansion if:

(a)    

the Regional Franchisee does not properly exploit and commercialise the System in the Territory;

(b)    

the Regional Franchisee is unable to meet, within a reasonable time, the demands of the company, customers or potential franchisees in the Territory  provided that the Company has provided direction on the methodology required to meet those demands, and the Regional Franchisee has been given an opportunity to undertake such further training as the Company may recommend; or

(c)    

in the reasonable opinion of the Company a redefinition of the Territory is in the best interests of the System.