Is the continuation of restrictions on Noodles & Company's ability to operate or license others in the Development Area dependent on achieving a certain sales volume?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Continuance of the limited restrictions on our ability to operate and license others to operate Noodles & Company restaurants in the Development Area is not contingent on you achieving a certain sales volume, market penetration or other contingency. The size of your Development Area may not be altered except if we mutually agree to modify the size in writing.
Source: Item 12 — TERRITORY (FDD pages 48–53)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the continuation of limited restrictions on Noodles & Company's ability to operate and license others to operate Noodles & Company restaurants in the Development Area is not contingent on a franchisee achieving a certain sales volume, market penetration, or other contingency. The size of the Development Area may only be altered if Noodles & Company and the franchisee mutually agree to modify it in writing.
Under the Area Development Agreement, a franchisee must open and operate the agreed-upon number of Noodles & Company restaurants within the Development Area according to the Development Schedule. Noodles & Company has no obligation to extend the Development Schedule, except in limited circumstances involving severe weather, and then only for a limited time. Failure to meet the Development Schedule is a material breach of the Area Development Agreement; however, Noodles & Company's right to terminate the Area Development Agreement will be their exclusive remedy for failure to meet the Development Schedule.
Noodles & Company retains several rights within the Development Area. These include the right to operate and license others to operate Noodles & Company restaurants outside the Development Area, and after the Area Development Agreement terminates, to operate or license others within the Development Area (excluding the Protected Area of operating restaurants). Noodles & Company can also manufacture, distribute, and sell similar products under similar brand names through various channels, sell products and services through other distribution channels like the Internet or wholesale, operate other concept restaurants, develop other franchise systems selling similar products under different trademarks, and market Noodles & Company branded products through any channel of distribution. They also reserve the right to purchase or merge with competing businesses.