What is the duration of the non-compete obligation for you and your Owners after you cease to render services to the Noodles & Company Franchisee?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
For a continuous uninterrupted period commencing upon the expiration or termination of the Franchise Agreement and for two years thereafter, you and your Owners, shall not, without Noodles & Company's prior written consent, either directory or indirectly, for yourself or through, on behalf of, or in conjunction with any person, persons, partnership, limited liability company, or corporation:
- (a) Divert or attempt to divert any business or customer of any Noodles & Company Restaurant to any competitor, by direct or indirect inducement or otherwise, or
do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Noodles & Company's Marks or the System.
(b) [Intentionally omitted]
(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 any 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 render services to the Noodles & Company franchisee. This obligation begins upon the expiration or termination of the Franchise Agreement.
During this two-year period, without prior written consent from Noodles & Company, you and your owners are prohibited from diverting business or customers from any Noodles & Company restaurant to a competitor. Additionally, you cannot engage in any activity that could harm the goodwill associated with Noodles & Company's marks or the system. This includes owning, maintaining, advising, being employed by, consulting for, making loans to, operating, or having an ownership interest in any competitive business.
The restrictions apply to businesses located within the Protected Area, within a 15-mile radius of your Noodles & Company Restaurant, within a 15-mile radius of any Noodles & Company Restaurant, or within any Designated Market Area where a Noodles & Company Restaurant is located. However, the non-compete obligation ends two years after the later of the date you cease to have an ownership interest in the franchisee or the date you cease to render services to the franchisee.
Noodles & Company emphasizes that you and your owners possess general skills and abilities that can be used in other ways, ensuring that the enforcement of these non-compete covenants will not deprive you of your personal goodwill or ability to earn a living. This suggests that while the restrictions are in place, they are intended to be reasonable and not overly burdensome.