Does the Noodles & Company agreement allow for any exceptions to the non-compete clause after the termination of the franchise agreement?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You and each of your Owners expressly acknowledge the possession of skills and abilities of a general nature and other opportunities for exploiting such skills in other ways, so that enforcement of the covenants contained in this Agreement will not deprive any of you of your personal goodwill or ability to earn a living. If you or any of your Owners fail or refuse to abide by any of the foregoing covenants and we obtain enforcement in a judicial or arbitration proceeding, the obligations under the breached covenant will continue in effect for a period of time ending two years after the date such person starts compliance with the order enforcing the covenant.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, if a franchisee or their owners fail to comply with the non-compete covenants and Noodles & Company obtains enforcement through legal proceedings, the obligations under the breached covenant will remain in effect for two years after the person begins complying with the enforcement order. This means that even after a legal order is issued, the non-compete obligations continue for an additional two years from the date of compliance.
Noodles & Company emphasizes that franchisees and their owners possess general skills and abilities that can be exploited in other ways, ensuring that the enforcement of these covenants will not deprive them of their personal goodwill or ability to earn a living. This statement suggests that Noodles & Company believes the non-compete agreement is reasonable and does not unduly restrict former franchisees' future employment or business opportunities.
This clause highlights the importance of understanding and adhering to the non-compete obligations outlined in the franchise agreement. Prospective Noodles & Company franchisees should carefully review these terms and consider their implications before signing the agreement. It is also advisable to seek legal counsel to fully understand the scope and enforceability of the non-compete provisions in their specific jurisdiction.