After the Franchise Agreement terminates or expires, can Noodles & Company operate and license others to operate Noodles & Company restaurants within my Protected Area?

According to the 2025 Noodles & Company Franchise Disclosure Document, Noodles & Company retains the right to operate and license others to operate Noodles & Company restaurants within a franchisee's Protected Area after the Franchise Agreement terminates or expires. This means that even after a franchisee's agreement ends, Noodles & Company is not restricted from establishing new company-owned or franchised locations in the same area where the former franchisee operated.

This reservation of rights has significant implications for prospective franchisees. While a franchisee benefits from a Protected Area during the term of their agreement, this protection is not permanent. Upon termination or expiration, Noodles & Company can directly compete or allow others to compete in the same territory. This could impact the potential resale value of the franchise or the ability to negotiate favorable terms upon renewal of the Franchise Agreement.

It is important for potential franchisees to understand that the Protected Area only exists during the active term of the Franchise Agreement. Franchisees should carefully consider this when evaluating the long-term potential of the Noodles & Company franchise and the possible competitive landscape after the agreement concludes. This is a fairly standard practice in the franchise industry, as franchisors typically want the flexibility to continue expanding their brand even after individual franchise agreements end.