After the expiration or termination of the Development Agreement, for how long must you and your Owners refrain from diverting business from any Noodles & Company Restaurant?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
For a continuous uninterrupted period commencing upon the expiration or termination of the Development 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.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, for a period of two years after the expiration or termination of the Development Agreement, you and your owners must not divert or attempt to divert business from any Noodles & Company restaurant. This restriction applies unless Noodles & Company provides prior written consent.
Specifically, you and your owners are prohibited from diverting business or customers to competitors through direct or indirect means. Additionally, you cannot perform any actions that could harm the goodwill associated with Noodles & Company's trademarks or the Noodles & Company system. This non-compete clause is designed to protect the brand and its franchisees from unfair competition after the Development Agreement concludes.
This restriction is in place to ensure that former developers do not leverage their knowledge and experience gained during their time with Noodles & Company to unfairly compete with existing franchisees or the company itself. It aims to maintain the integrity of the Noodles & Company brand and protect the investment of current franchisees. This type of clause is standard practice in franchising to protect the brand and other franchisees in the system.