Does the Area Development Agreement authorize the franchisee to operate a Noodles & Company restaurant?

According to Noodles & Company's 2025 Franchise Disclosure Document, the Area Development Agreement does not authorize a franchisee to operate a Noodles & Company restaurant. Instead, the Area Development Agreement grants the developer the right to develop an agreed-upon number of Noodles & Company restaurants within a specific geographical area, known as the Development Area, as detailed in Exhibit A of the agreement. The specific number of restaurants and the schedule for their opening and operation are also outlined in Exhibit A.

The FDD clarifies that the right to operate a Noodles & Company restaurant is granted under a separate Franchise Agreement, not the Area Development Agreement. Therefore, while the Area Development Agreement allows a developer to establish multiple locations within a defined territory, each individual restaurant must be operated under its own Franchise Agreement.

This distinction is important for prospective franchisees because it highlights the two-stage process involved in developing multiple Noodles & Company locations. First, the Area Development Agreement sets the terms for the overall development plan. Second, a Franchise Agreement is required for each specific restaurant to authorize its operation. This also means that a developer must meet the obligations of both agreements to remain in good standing with Noodles & Company.