What geographic areas are considered off-limits for engaging in a Competitive Business after leaving a Noodles & Company franchise?
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.
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Notwithstanding the foregoing, you will have no obligation under Section 5 or Section 6 after the second anniversary of the later of (a) the date you cease to have an ownership interest in Franchisee or (b) the date you cease to render services to Franchisee.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, for a period of two years after the termination or expiration of the franchise agreement, a former franchisee is restricted from engaging in a Competitive Business within certain geographic areas. These areas include the franchisee's Protected Area, a 15-mile radius from the former franchisee's Noodles & Company Restaurant, and a 15-mile radius of any Noodles & Company Restaurant.
These restrictions prevent a former Noodles & Company franchisee from leveraging their knowledge and experience gained while operating a Noodles & Company restaurant to directly compete with the brand in close proximity to existing locations. The restrictions apply to the franchisee and their owners, preventing them from owning, maintaining, advising, being employed by, consulting for, making loans to, operating, engaging in, or having an ownership interest in any Competitive Business within the specified areas.
Notably, the geographic restriction also extends to any Designated Market Area (as defined by Nielsen Media Research) where a Noodles & Company Restaurant is located. This clause is broader than just the immediate vicinity of a restaurant and covers entire media markets, which could encompass a large area.
These post-term covenants are designed to protect Noodles & Company's market share and brand reputation by preventing former franchisees from directly competing in areas where Noodles & Company has a presence. However, these restrictions cease after the second anniversary of the date the franchisee ceases to have an ownership interest or render services to the franchise.