After the Area Development Agreement terminates or expires, can Noodles & Company operate Noodles & Company restaurants within my Development Area, but outside my Protected Area?

According to Noodles & Company's 2025 Franchise Disclosure Document, Noodles & Company retains the right to operate or license others to operate Noodles & Company restaurants within your Development Area, but outside your Protected Area, after the Area Development Agreement terminates or expires. This means that even after your development agreement ends, Noodles & Company can establish new restaurants in the area where you previously had development rights, as long as they are not within the Protected Area of your existing restaurants.

This reservation of rights allows Noodles & Company to continue expanding its brand presence in the Development Area, even if you no longer have the exclusive right to develop new locations. This could lead to increased competition within the Development Area, as Noodles & Company could open company-owned restaurants or franchise new locations to other franchisees.

For a prospective franchisee, this highlights the importance of understanding the scope and limitations of the Protected Area. While you have some protection around your existing restaurants, Noodles & Company retains significant control over development in the broader Development Area after the agreement ends. This is a fairly standard practice in franchising, as franchisors typically want to maintain flexibility for future growth and market penetration.