Besides the rights granted to the franchisee, what rights does Noodles & Company reserve?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for the rights specifically granted to you, we reserve all other rights, including, for example, the following rights:
(i) We reserve the right to manufacture and sell anywhere products that are the same or similar to products sold in Noodles & Company restaurants using brand names that are similar to or the same as the Marks through any channel of distribution, including, for example, grocery stores, supermarkets, convenience stores, caterers and gas stations.
(ii) We reserve the right to sell products and services through other channels of distribution including Internet, wholesale, mail order and catalog.
The Internet is a channel of distribution reserved exclusively to us and you may not independently market on the Internet or conduct e-commerce except as we approve, in our sole discretion.
(iii) We reserve the right to operate and franchise and license others to operate other concept restaurants.
(iv) We reserve the right to develop and/or own other franchise systems for the same or similar products and services using different trademarks than those licensed to you.
(v) We reserve the right to produce, license, manufacture, sell, distribute and market Noodles & Company brand named products, and products bearing other marks, including food and beverage products, clothing, souvenirs, and novelty items through any channel of distribution, including, for example, grocery stores, supermarkets, convenience stores, caterers, and gas stations.
(vi) We reserve the right to purchase or be purchased by, or merge or combine with, competing businesses wherever located.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, Noodles & Company retains significant rights outside those explicitly granted to the franchisee. Noodles & Company reserves the right to manufacture and sell products similar to those sold in its restaurants through various channels, including grocery stores and gas stations, even using similar brand names. This means that Noodles & Company could potentially compete with its own franchisees through alternative distribution methods.
Noodles & Company also reserves the right to sell products and services through other channels like the Internet, wholesale, mail order, and catalogs. Notably, the Internet is exclusively reserved for Noodles & Company, limiting the franchisee's ability to independently market online or conduct e-commerce without specific approval. Additionally, Noodles & Company can operate, franchise, or license others to operate other restaurant concepts, even those similar to Noodles & Company, and develop other franchise systems offering similar products and services under different trademarks.
Furthermore, Noodles & Company retains the right to produce, license, manufacture, sell, distribute, and market Noodles & Company branded products, such as food, beverages, clothing, and souvenirs, through any distribution channel. Finally, Noodles & Company reserves the right to purchase, be purchased by, or merge with competing businesses, regardless of location. These reserved rights highlight the broad control Noodles & Company maintains over its brand and distribution channels, which could impact a franchisee's market and revenue potential.