ARTICLE XV

LIMITED SUB-FRANCHISE MEMBERS

Applicants for limited sub-franchises usually have one or two younger aged teams. They usually want to continue to participate in the League each year with the same teams as they age up but they have no intention to form additional teams in the future, including repeat participation in the younger age divisions. This member class has the least participation and player rights.

Section 15.1 Qualifications

There are three possible situations a prospective applicant for a limited sub-franchise could find itself in.

(1) Its players reside in an OPEN AREA(s) of the League.

(2) Its players reside in a school district that is part of the Core Area or Non-Core Area of one or more existing franchise members.

a. If the existing member is not active in the same age division:

b. If the existing member is active in the same age division:

RULE 65 The first year roster of any limited sub-franchise applicant shall be limited to players that did not participate in the league in the previous year.

The League shall have sole power to grant limited sub-franchises except where an applicant club shall include several restricted free agents that all reside in the same active franchise area and that franchise member is active in the same age division. In this case only, the applicant shall be required to obtain the approval of the active franchise member as a condition of membership. The franchise member may challenge any player(s) on the applicant's roster residing within its franchise area. The applicant must reach a satisfactory disposition with the franchise member in regards to all challenged players before its application for membership can be accepted.

Section 15.2 General Participation Rights

The limited sub-franchise is granted the right under its SPA to have certain understood teams participate in the League indefinitely. To terminate a limited sub-franchise arrangement the sub-franchisee would have to be found to be in violation of its limited sub-franchise agreement or other league rules, or fail to register teams in the League’s younger age divisions, 15U and below. Should the limited sub-franchise membership be terminated for any reason, all teams owned by the limited sub-franchise, already started in the League, shall be entitled to continue in the League from one year to the next, provided they remain in good standing.

Section 15.3 Franchise Area Rights

The limited sub-franchise has no territorial ownership rights and thus no territorial based player rights.

Section 15.4 General Player Rights

See Article XVI for a comprehensive discussion of member’s rights to players.

RULE 66 The limited sub-franchise has no presumed rights to the restricted players of any franchise i.e., a restricted free agent wishing to sign with a limited sub-franchise is not eligible for a non-discretionary release. Restricted free agents would need a discretionary release prior to being eligible to play for a limited sub-franchise.

RULE 67 The roster of a limited sub-franchise member is protected within the League from one year to the next.

Section 15.5 Player Release Rights

By rule 38, the limited sub-franchise has no power to grant releases to another member's protected or restricted players.