Besides a specific radius, what other geographic area is considered off-limits for engaging in a Competitive Business related to Noodles & Company?
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 any Noodles & Company Restaurant is located.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, franchisees and their owners face restrictions on engaging in competitive businesses during the term of their agreement. These restrictions extend beyond specific radii from Noodles & Company restaurants. Specifically, franchisees are prohibited from owning, maintaining, advising, or being involved in any Competitive Business located within the franchisee's Protected Area, a 15-mile radius from their Noodles & Company Restaurant, a 15-mile radius of any Noodles & Company Restaurant, or any Designated Market Area (as defined by Nielsen Media Research) where any Noodles & Company Restaurant is located.
These restrictions also apply post-term for a period of two years after the expiration or termination of the Franchise Agreement. This means that for two years after leaving the Noodles & Company system, former franchisees cannot be involved in a competitive business within the same geographic limitations. This post-term covenant is designed to protect Noodles & Company's market share and brand reputation by preventing former franchisees from using their knowledge of the business to directly compete against the chain in areas where Noodles & Company operates.
The definition of "Competitive Business" is broad, encompassing any restaurant where the sale of specified dishes (noodle, pasta, Asian, Italian, or Mediterranean dishes) constitutes more than 10% of operating revenues, or any restaurant that is substantially similar to the Noodles & Company concept, or operates in a fast casual or quick casual format. However, there are exceptions, such as ownership of less than 5% of a publicly traded company's securities or restaurant concepts with significantly different average checks per person.
Prospective franchisees should carefully consider these non-compete restrictions, as they could limit their future business opportunities. It is important to understand the definition of "Competitive Business" and the geographic scope of the restrictions, both during and after the franchise term. Franchisees should also be aware that Noodles & Company has the right to reduce the scope of any covenant set forth in the agreement, effective immediately upon written notice.