Besides the Protected Area, what other geographic areas restrict a Noodles & Company franchisee from engaging in a Competitive Business?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Own, maintain, advise, be employed by, consult for, make loans to, operate, engage in or have an ownership interest (including any right to share in revenues or profits) in any Competitive Business which is, or is intended to be located within:
- (1) the Protected Area;
- (2) a radius of 15 miles from your Noodles & Company Restaurant;
- (3) a radius of 15 miles of any Noodles & Company Restaurant; or
- (4) any Designated Market Area (as defined by Nielsen Media Research) where a Noodles & Company Restaurant is located.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, during the term of the agreement, a franchisee is restricted from engaging in a competitive business within several geographic areas. Besides the Protected Area, these include a 15-mile radius from the franchisee's Noodles & Company restaurant, a 15-mile radius of any Noodles & Company restaurant, and the Designated Market Area (as defined by Nielsen Media Research) where any Noodles & Company Restaurant is located.
These restrictions apply if the franchisee or their owners intend to own, maintain, advise, be employed by, consult for, make loans to, operate, engage in, or have an ownership interest in a competitive business. These covenants remain in effect during the term of the Franchise Agreement.
After the agreement expires or terminates, these restrictions continue for two years. However, these obligations cease after the second anniversary of when the franchisee no longer has an ownership interest or provides services to the franchise. Noodles & Company also retains the right to reduce the scope of any covenant without the franchisee's consent, effective immediately upon written notice.