Can Noodles & Company develop locations within a franchisee's Protected Area if they are considered 'Non-Traditional Venues', regardless of their proximity to the franchisee's Noodles & Company restaurant?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge, however, that certain locations within the Protected Area are by their nature unique and separate in character from the sites to which we intend to grant you a franchise; such sites are referred to as "Non-Traditional Venues." As a result, you agree that Non-Traditional Venues are excluded from the Protected Area and we shall have the right to develop (by direct ownership, franchising, licensing or other means) such locations even if such sites are located within the Protected Area and regardless of the proximity of such sites to any Noodles & Company Restaurant for which you have, or might have in the future, a franchise. Non-Traditional Venues include, for example: (i) transportation facilities, including airports, train stations, subways and rail, and bus stations; (ii) military bases and government offices; (iii) sports facilities, including stadiums and arenas; (iv) amusement parks, zoos, and convention centers; (v) car and truck rest stops, and travel centers and Limited Access Highway oasis and rest and service areas; (vi) casinos; (vii) food courts; (viii) Indian reservations; and (ix) museums.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the company retains the right to develop Non-Traditional Venues within a franchisee's protected area. These Non-Traditional Venues are considered unique and separate from typical franchise locations.
This means that even if a franchisee has a protected area, Noodles & Company can still establish locations within that area if they classify them as Non-Traditional Venues. This right extends to development through direct ownership, franchising, licensing, or other means. The establishment of these venues is permitted regardless of their proximity to an existing Noodles & Company restaurant operated by a franchisee.
Examples of Non-Traditional Venues include transportation facilities like airports and train stations, military bases, sports facilities, amusement parks, rest stops, casinos, food courts, Indian reservations, and museums. This reservation of rights allows Noodles & Company to pursue opportunities in locations that might not be suitable for a traditional franchise model, but could still benefit from a Noodles & Company presence.
For a prospective franchisee, this clause means that their protected area is not absolute. While they are protected from traditional Noodles & Company restaurants, the company can still develop Non-Traditional Venues within that area, potentially impacting the franchisee's business. It is important for franchisees to understand this exception and consider its potential impact on their investment.