Does the Noodles & Company FDD specify a radius restriction around any location other than an existing Noodles & Company Restaurant?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
(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 Franchise Disclosure Document, there are restrictions regarding involvement with competitive businesses near existing Noodles & Company restaurants. Specifically, during the term of the agreement, franchisees are prohibited from engaging in any competitive business within a 15-mile radius of any Noodles & Company Restaurant, not just their own. This restriction also applies within any Designated Market Area (as defined by Nielsen Media Research) where a Noodles & Company Restaurant is located.
This restriction extends beyond just the franchisee's own restaurant, meaning a franchisee cannot own or be involved with a competing business near any other Noodles & Company location. This is a significant restriction that could limit a franchisee's ability to diversify their business interests within a broader geographic area. The FDD also states that these restrictions apply to the franchisee's owners.
After the franchise agreement expires or terminates, these restrictions continue for two years. During this post-term period, the franchisee and their owners are still prohibited from engaging in competitive businesses within the specified radius or Designated Market Area of any Noodles & Company restaurant. This extended restriction is designed to protect Noodles & Company's market share and brand reputation even after a franchisee leaves the system.
Noodles & Company also retains the right to reduce the scope of any covenant set forth in the agreement, including the geographic restrictions, at its sole discretion and without the franchisee's consent. This modification becomes effective immediately upon written notice to the franchisee, who must comply with the modified covenant. This clause gives Noodles & Company flexibility to adjust the competitive restrictions as market conditions change.