After the expiration or termination of the Development Agreement, can you or your Owners operate a Competitive Business within any Designated Market Area where a Noodles & Company Restaurant is located?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
aurant 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) the United States.
- (1) the Protected Area;
-
- 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.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company FDD, after the expiration or termination of the Franchise Agreement, both you and your owners are restricted from engaging in any Competitive Business within specific geographic areas. This restriction lasts for a continuous, uninterrupted period of two years.
Specifically, you and your owners are prohibited from owning, maintaining, advising, being employed by, consulting for, making loans to, operating, engaging in, or having an ownership interest in any Competitive Business. This restriction applies if the Competitive Business is 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 (as defined by Nielsen Media Research) where any Noodles & Company Restaurant is located.
However, these non-compete obligations cease after the second anniversary of the later of (a) the date you no longer have an ownership interest in the Franchisee or (b) the date you stop providing services to the Franchisee. The FDD also states that you and your owners acknowledge having general skills and the opportunity to use them in other ways, so enforcing these covenants will not deprive you of your personal goodwill or ability to earn a living.