What is the definition of 'Confidential Information' in the context of a Noodles & Company franchise agreement?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
"Confidential Information" – Our proprietary and confidential information relating to the development and operation of Noodles & Company Restaurants, including: (1) ingredients, recipes and methods of preparation and presentation of authorized food products; (2) site selection criteria for Noodles & Company Restaurants and plans and specifications for the development of Noodles & Company Restaurants; (3) sales, marketing and advertising programs and techniques for Noodles & Company Restaurants; (4) identity of suppliers and knowledge of specifications, processes, procedures and equipment, contract terms, and pricing for authorized food products, materials, supplies and equipment; (5) knowledge of operating results and financial performance of Noodles & Company Restaurants, other than Noodles & Company Restaurants you own; (6) methods of inventory control, storage, product handling, training, food cost and management relating to Noodles & Company Restaurants; (7) computer systems and software programs used or useful in Noodles & Company Restaurants; (8) this Agreement and the terms hereof; and (9) any information that we provide you that is labeled proprietary or confidential.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, 'Confidential Information' encompasses proprietary details related to the development and operation of Noodles & Company restaurants. This includes a wide array of sensitive business information. Specifically, it covers ingredients, recipes, and methods for preparing and presenting authorized food products, which are crucial to maintaining the brand's unique offerings.
Furthermore, the definition extends to site selection criteria and the architectural plans and specifications used in developing Noodles & Company restaurants. It also includes the sales, marketing, and advertising programs and techniques employed by the company. The identity of suppliers, along with knowledge of their specifications, processes, procedures, equipment, contract terms, and pricing for authorized food products, materials, supplies, and equipment, are also considered confidential. This ensures that franchisees do not compromise the supply chain or gain an unfair advantage.
In addition, 'Confidential Information' includes knowledge of operating results and the financial performance of Noodles & Company restaurants (excluding the franchisee's own restaurants), methods of inventory control, storage, product handling, training, food cost management, and information pertaining to computer systems and software programs used within the restaurants. The franchise agreement itself and its terms are also classified as confidential. Finally, any information provided by Noodles & Company that is explicitly labeled as proprietary or confidential falls under this definition, providing a catch-all for sensitive data not explicitly listed.