What factors are considered when determining the Protected Area for a Noodles & Company restaurant?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of your Franchise Agreement, and provided you are in compliance with the Franchise Agreement and any other agreements with us or our affiliates and are current on all obligations due to us or our affiliates, we will not operate (directly or through an affiliate), nor grant to another person the right to operate, any Noodles & Company restaurant located within a geographical area surrounding your Noodles & Company restaurant that we specify in an exhibit to the Franchise Agreement ("Protected Area"). This restriction will not apply to any restaurant(s) in operation or under lease or construction or other commitment to open before execution of your Franchise Agreement. The Protected Area will be determined using our then current standards and will be determined before we sign the Franchise Agreement based on the location of the restaurant within the mutually agreed upon trade areas. The factors to be considered include, for example, population density, site economics and the residential or commercial character of the area.
Source: Item 12 — TERRITORY (FDD pages 48–53)
What This Means (2025 FDD)
According to the 2025 Noodles & Company FDD, the Protected Area is determined before signing the Franchise Agreement and is based on the restaurant's location within mutually agreed-upon trade areas. Several factors are considered to determine the Protected Area. These include population density, site economics, and the residential or commercial character of the area.
It is important to note that Noodles & Company retains significant rights within and outside the Protected Area. These rights include operating or licensing other Noodles & Company restaurants outside the Protected Area, operating or licensing restaurants within the Protected Area after the Franchise Agreement terminates, and manufacturing and selling products similar to those sold in Noodles & Company restaurants through various channels of distribution. They also reserve the right to operate other concept restaurants and franchise systems within the Protected Area.
Certain locations, referred to as "Non-Traditional Venues," are excluded from the Protected Area. These venues include transportation facilities, military bases, sports facilities, amusement parks, casinos, food courts, Indian reservations, and museums. Noodles & Company reserves the right to develop these locations, regardless of their proximity to other Noodles & Company restaurants.
Prospective franchisees should carefully consider these factors and rights when evaluating a Noodles & Company franchise. Understanding the scope and limitations of the Protected Area is crucial for assessing the potential for competition and the overall viability of the franchise.