After the expiration or termination of the Development Agreement, can you or your Owners operate a Competitive Business within the Protected Area of a Noodles & Company Restaurant?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
y 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) the United States.
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- 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.
- (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 a Noodles & Company Restaurant is located.
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Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, for a period of two years after the expiration or termination of the Development Agreement, you and your owners are restricted from engaging in any Competitive Business. This restriction applies to businesses located within the Protected Area, a 15-mile radius of 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. This is unless you obtain prior written consent from Noodles & Company.
This non-compete clause prevents you from diverting business or customers from any Noodles & Company Restaurant to a competitor, or from performing any action that could harm the goodwill associated with Noodles & Company's brand or system. However, these obligations cease after the second anniversary of the date you no longer have an ownership interest in the Franchisee or provide services to the Franchisee.
The FDD states that you and your owners acknowledge having general skills and abilities that can be used in other ways, ensuring that enforcing these covenants will not deprive you of your personal goodwill or ability to earn a living. This acknowledgement suggests that while Noodles & Company enforces non-compete restrictions, they also recognize the importance of allowing former franchisees to pursue other opportunities.