Is the continuation of Noodles & Company's limited restrictions on operating and licensing others in my Protected Area contingent on achieving a specific sales volume or market penetration?

According to the 2025 Noodles & Company FDD, the continuation of limited restrictions on Noodles & Company's ability to operate and license others to operate restaurants in a franchisee's Protected Area is not contingent on achieving a certain sales volume, market penetration, or other contingency. The size of the Protected Area may only be altered if Noodles & Company and the franchisee mutually agree to modify it in writing.

This means that as long as the franchisee remains in compliance with the Franchise Agreement, Noodles & Company will not open or license another restaurant within the Protected Area, regardless of the restaurant's sales performance or market share. This provides a degree of security for the franchisee, as their Protected Area is not subject to change based on sales figures.

However, the FDD also states that Noodles & Company does not restrict the areas in which a franchisee may advertise or solicit customers, but the franchisee does not have the right to use other channels of distribution, including the Internet, catalog sales, telemarketing, or other direct marketing. This implies that while Noodles & Company provides some territorial protection, franchisees are limited in their marketing approaches and must rely on approved methods.