What must Noodles & Company franchisees and their Owners do with the Confidential Information at the end of the franchise term?

According to Noodles & Company's 2025 Franchise Disclosure Document, at the end of the franchise term, franchisees and their owners must deliver to Noodles & Company all Confidential Information in their possession. This requirement ensures that all proprietary information remains with Noodles & Company, protecting their trade secrets and operational methods. The FDD defines confidential information as proprietary information relating to the development and operation of Noodles & Company restaurants, including ingredients, recipes, methods of preparation, site selection criteria, marketing programs, supplier information, operating results, computer systems, and the terms of the Franchise Agreement.

This obligation extends not only to the franchisee but also to their owners, officers, directors, and general managers, all of whom must maintain the confidentiality of the information. This is reinforced through the use of non-disclosure agreements. The franchisee is responsible for implementing procedures to prevent unauthorized use or disclosure of confidential information, ensuring that all parties with access to the information are bound by these confidentiality requirements.

The restrictions on disclosure and use of confidential information do not apply to information or techniques which are or become generally known in the restaurant industry, provided Noodles & Company gives prior written consent to such disclosure or use. This exception acknowledges that some information may enter the public domain legitimately, but it requires franchisees to seek permission before using or disclosing such information. This ensures that franchisees do not inadvertently disclose information that Noodles & Company still considers confidential.

For a prospective franchisee, this means that upon termination of the franchise agreement, they must return all documents, electronic files, and other materials containing confidential information to Noodles & Company. This includes recipes, operational manuals, marketing strategies, and any other proprietary information. Failure to comply with this requirement could result in legal action by Noodles & Company to protect its trade secrets and proprietary information.