What is the duration of the non-compete obligation for you and your Owners after you cease to have an ownership interest in the Noodles & Company Franchisee?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Own, maintain, advise, be employed by, consult for, make loans to, operate, engage in or have an ownership interest (including any right to share in revenues or profits) in any Competitive Business which is, or is intended to be located within:
(1) the Protected Area;
(2) a radius of 15 miles from your Noodles & Company Restaurant;
(3) a radius of 15 miles of any Noodles & Company Restaurant; or
(4) any Designated Market Area (as defined by Nielsen Media Research) where a Noodles & Company Restaurant is located.
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Notwithstanding the foregoing, you will have no obligation under Section 5 or Section 6 after the second anniversary of the later of (a) the date you cease to have an ownership interest in Franchisee or (b) the date you cease to render services to Franchisee.
You and each of your Owners expressly acknowledge the possession of skills and abilities of a general nature and the opportunity to exploit such skills in other ways, so that enforcement of the covenants contained in Sections 5 and 6 will not deprive any of you of your personal goodwill or ability to earn a living.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, both you and your owners are subject to a non-compete obligation for a period of two years after you cease to have an ownership interest in the Noodles & Company franchise. Specifically, this two-year period begins after the later of (a) the date you cease to have an ownership interest in the Franchisee or (b) the date you cease to render services to Franchisee.
During this two-year period, you are restricted from engaging in any Competitive Business within certain geographic areas. These areas include the Protected Area, a 15-mile radius from your Noodles & Company Restaurant, a 15-mile radius of any Noodles & Company Restaurant, or any Designated Market Area where a Noodles & Company Restaurant is located. The restrictions prevent you from owning, maintaining, advising, being employed by, consulting for, making loans to, operating, engaging in, or having an ownership interest in any Competitive Business within these defined areas.
Noodles & Company emphasizes that the skills and abilities you and your owners possess are general in nature and can be used in other ways, ensuring that the non-compete agreement does not deprive you of your personal goodwill or ability to earn a living. This suggests that while you cannot directly compete with Noodles & Company within the specified scope and timeframe, you are not entirely restricted from pursuing other business ventures.