Is Noodles & Company allowed to merge with competing businesses, regardless of location?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) To purchase or be purchased by, or merge or combine with, competing businesses wherever located.
Source: Item 12 — TERRITORY (FDD pages 48–53)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, Noodles & Company retains the right to purchase or be purchased by, or merge or combine with, competing businesses, regardless of where those businesses are located. This right is explicitly reserved by Noodles & Company, meaning that even if a franchisee has a protected area, Noodles & Company can still merge with a competitor operating within that area. This applies both to franchisees with a standard Franchise Agreement and those with an Area Development Agreement.
This reservation of rights has significant implications for prospective Noodles & Company franchisees. It means that Noodles & Company could potentially merge with a direct competitor, which could alter the competitive landscape for franchisees. While the FDD does not elaborate on how such a merger would be handled, it is possible that the franchisee's business could be impacted by changes in brand strategy, product offerings, or operational procedures resulting from the merger.
It is important for potential franchisees to understand that this right is retained by Noodles & Company. While Noodles & Company does not currently operate or franchise any other business selling similar products and services under different trademarks, they reserve the right to do so in the future. This could create internal competition within the Noodles & Company system, as the franchisor could potentially introduce new brands or concepts that compete with existing Noodles & Company restaurants. Prospective franchisees should carefully consider this when evaluating the Noodles & Company franchise opportunity and discuss any concerns with the franchisor.