Can Noodles & Company develop Non-Traditional Venues within the Development Area?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
(d) You acknowledge, however, that certain locations within the Development Area are by their nature unique and separate in character from the sites to which we intend to grant you a franchise or area Development Rights pursuant to this Agreement; such sites are referred to as "Non-Traditional Venues." As a result, you agree that Non-Traditional Venues are excluded from the Development Area (and any Protected Area under any Franchise Agreement) 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 Development Area (and any Protected Area under any Franchise Agreement) and regardless of the proximity of such sites to any Noodles & Company restaurant for which you have or might have in the foreseeable 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, Noodles & Company retains the right to develop Non-Traditional Venues within a franchisee's Development Area. These Non-Traditional Venues are considered unique and separate from typical franchise locations. Therefore, they are excluded from the Development Area granted to the franchisee.
This means that even if a franchisee has development rights for a specific geographic area, Noodles & Company can still establish locations in Non-Traditional Venues within that area through direct ownership, franchising, licensing, or other means. The development of these venues by Noodles & Company can occur regardless of their proximity to any existing or potential Noodles & Company restaurant franchised to the 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 may not be suitable for a traditional franchise model, but still offer potential for the brand. For a prospective franchisee, this means that Noodles & Company could operate restaurants in locations within their territory that they would not directly benefit from.
This clause protects Noodles & Company's ability to expand into diverse locations and capture additional market share. However, it also introduces a potential risk for franchisees, as Noodles & Company could establish locations within their Development Area that compete with their restaurants, although in non-traditional settings. Franchisees should consider the potential impact of these Non-Traditional Venues on their business when evaluating a Noodles & Company franchise opportunity.