What determines the size of the Development Area for a Noodles & Company franchise?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory under the Area Development Agreement. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. The Area Development Agreement grants you the right to develop an agreed upon number of Noodles & Company restaurants within a geographical area described in Exhibit A to the Area Development Agreement (the "Development Area"). Except as described below, during the term of the Development Agreement, we will not operate (directly or through an affiliate), nor license anyone else to operate, any Noodles & Company restaurants located within the Development Area. The size of the Development Area will depend on the number of Noodles & Company restaurants suitable for the Development Area and the trade areas within the Development Area, as we and you determine in light of a number of factors, including, for example, population density, site economics and the residential or commercial character of the area. The Development Area will generally be a metropolitan area or part of a metropolitan or substantial suburban area. The number of Noodles & Company restaurants and the dates they are to be open, and operating will also be set out in Exhibit A to the Area Development Agreement (the "Development Schedule"). The Area Development Agreement does not provide you with any certain options, rights of first refusal or similar rights to acquire or develop additional Noodles & Company restaurants in the Development Area or in any other area. We describe the site selection process in Item 11.
Source: Item 12 — TERRITORY (FDD pages 48–53)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, the size of the Development Area under the Area Development Agreement is determined jointly by Noodles & Company and the franchisee. Several factors are considered to determine the size of the Development Area, including the number of suitable Noodles & Company restaurant locations, trade areas within the Development Area, population density, site economics, and the residential or commercial character of the area. The Development Area is typically a metropolitan area or a significant suburban region.
The Area Development Agreement grants the franchisee the right to develop an agreed-upon number of Noodles & Company restaurants within the Development Area, as detailed in Exhibit A of the Area Development Agreement. The number of restaurants to be developed and their opening dates are specified in the Development Schedule, also found in Exhibit A. During the term of the Development Agreement, Noodles & Company will not operate or license others to operate Noodles & Company restaurants within the Development Area, with some exceptions.
It is important to note that the Area Development Agreement does not grant an exclusive territory. Franchisees may face competition from other franchisees, company-owned outlets, or other channels of distribution. Additionally, the franchisee does not have any guaranteed options or rights to develop additional Noodles & Company restaurants beyond what is outlined in the Development Schedule. The size of the Development Area can only be altered through a written agreement between Noodles & Company and the franchisee.