What is a 'Development Area' according to the Noodles & Company FDD, and how is it determined?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
"Development Area" - As defined in Section 2.02.
2.02 Development Rights.
(a) Upon the terms and subject to the conditions of this Agreement, Company hereby grants to Area Operator, and Area Operator hereby accepts, the right and obligation, during the Term (defined below), to develop Noodles & Company Restaurants in the geographic area defined as the Development Area defined below (the "Development Rights"). You shall have no right to subfranchise, sublicense, or otherwise grant sub rights to anyone.
You must have open and operating continuously in the Development Area in accordance with and pursuant to Franchise Agreements, that cumulative number of Noodles & Company restaurants set forth in Exhibit A by the corresponding dates set forth therein ("Development Schedule").
Each of the restaurants you develop will have a Protected Area, as such is designated in the Franchise Agreement for such restaurant. The Protected Area may be designated as a radius, polygon or other geometric shape or as a specific trade area as Noodles and Company shall determine prior to execution of the Franchise Agreement for such restaurant.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, a 'Development Area' is a geographic area where an Area Operator has the right and obligation to develop Noodles & Company restaurants during the term of the Area Development Agreement. This is defined in Section 2.02 of the agreement. The Area Operator does not have the right to subfranchise or grant sub-rights to anyone else within this area.
The FDD specifies that the Area Operator must continuously operate a set number of Noodles & Company restaurants within the Development Area, as outlined in Exhibit A of the agreement, following a 'Development Schedule'. Failure to meet this schedule, or to adhere to Noodles & Company's standards for site development, design, construction, and operation, constitutes a material breach of the agreement. However, the agreement also states that the Area Operator will not be in breach of the Development Schedule if the failure to open restaurants on time results from significant weather delays, fires, or other natural disasters, with a limit of 20 days in the aggregate for such delays.
Each restaurant developed within the Development Area will have a 'Protected Area', which is designated in the Franchise Agreement for that specific restaurant. This Protected Area can be defined as a radius, polygon, geometric shape, or a specific trade area, as determined by Noodles & Company before the Franchise Agreement is executed. If the Area Operator's right to develop Noodles & Company restaurants expires or is terminated, Noodles & Company retains the right to develop and operate restaurants, or allow others to do so, within the Development Area, subject to the Protected Areas granted in previously executed Franchise Agreements.