After the expiration or termination of the Development Agreement, can you or your Owners operate a Competitive Business within 15 miles of any 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.
-
- 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.
-
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company FDD, for a period of two years after the expiration or termination of the Development Agreement, franchisees and their owners are restricted from engaging in any Competitive Business. This restriction applies to owning, maintaining, advising, being employed by, consulting for, making loans to, operating, or having an ownership interest in a Competitive Business.
This non-compete clause extends to businesses located within the franchisee's Protected Area, within a 15-mile radius of the franchisee's 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. To engage in such a business within these restricted areas and time frame, the franchisee must obtain prior written consent from Noodles & Company.
This restriction is designed to protect Noodles & Company's market and goodwill by preventing former franchisees from directly competing with existing Noodles & Company restaurants shortly after their departure. However, after two years from the date the franchisee ceases to have an ownership interest, or ceases to render services to the franchisee, these restrictions no longer apply. Additionally, the FDD states that the franchisee's general skills and abilities allow them to earn a living in other ways, so the enforcement of these covenants will not deprive them of their personal goodwill or ability to earn a living.