If mike gave the ok for clem and tes to form there own families, do you think there would have been a territory struggle between the 2?

depends how ambitious they are, clemenza at first glance seemed to be the most ambitious of the two, but we all know how things turned out in the end of the movie/book. i don't think there would've been issues as michael sort of made it clear that their friendship would maintain. in addition, as much as michael says he wouldn't, i bet he'd still meddle in the clemenza and tessio family affairs.

Clemenza told Vito in the fishtank scene: "Godfather, you once said the day would come when me and Pete could form our own family (emphasis added). But Michael never had any intention of allowing them to go their own way. NYC was too lucrative for Michael to give up, and the Corlones' dominance of illegal gambling made a natural syergy with his "legitimate" gambling interests in Nevada. And Michael needed credible muscle behind him to discourage other Mafia families from moving in on his casinos--without muscle he'd be just another "legitimate" casino owner.

Vito's T&C promise could have been a dilemma for Michael. He knew that there never was, and never would be, a co-Donship. Either T&C would have had to split their territories into two separate entities, or they'd have fought to the death to be the surviving Don. Either approach would have weakened the "olive oil business" and made it a sitting duck for Barzini and the other families.

So, Tessio's betrayal was a stroke of good luck for Michael. It solved the dual-Don dilemma, and the survivor, Clemenza, was indisputably loyal to Michael and would accept being a capo under him, instead of an independent Don--an arrangement that Tessio would never have gone for.

Well, the whole point is moot. A don just does not up and give the ok for a capo to form a new family and that's all there is to it. I think a few other people (like all the other family members throughout the Nation) would have a say.

i think if tessio can go after the son of his boss and life friend he would go after clem as well for power.