What are the four defined geographic areas related to covenants where Noodles & Company restaurants are located?
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 FDD, there are four geographic areas defined in relation to covenants. These areas define where a franchisee is restricted from engaging in competitive business activities, both during the term of the franchise agreement and for a period after its termination or expiration. These restrictions are designed to protect Noodles & Company's market and brand.
The first area is the franchisee's Protected Area, which is a specific territory granted to the franchisee. The second and third areas are radii of 15 miles from the franchisee's Noodles & Company restaurant and any Noodles & Company restaurant, respectively. Finally, the fourth area is any Designated Market Area (DMA) as defined by Nielsen Media Research where a Noodles & Company restaurant is located.
These covenants and geographic limitations are typical in franchising to prevent franchisees from directly competing with the franchisor or other franchisees, especially after leaving the system. Prospective Noodles & Company franchisees should carefully consider the implications of these restrictions, particularly the size and nature of their protected area and the potential impact of the 15-mile radius and DMA restrictions on their future business activities.