What geographic areas are restricted for a Noodles & Company franchisee regarding involvement in a Competitive Business during the term of the agreement?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.02 In-Term Covenants. During the Term, you shall not, without Noodles & Company's prior written consent, either directly or indirectly, for yourself, or through, on behalf of, or in conjunction with any person, persons, partnership, limited liability company, or corporation:
- (a) Divert or attempt to divert any business or customer of any Noodles & Company Restaurant to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Noodles & Company's Marks or the System.
- (b) [Intentionally omitted]
- (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) the United States.
- 6.03. Post-Term Covenants. For a continuous uninterrupted period commencing upon the expiration or termination of this Agreement and for two years thereafter, you shall not, without Noodles & Company's prior written consent, either directory or indirectly, for yourself, or through, on behalf of, or in conjunction with any person, persons, partnership, limited liability company, or corporation:
- (a) Divert or attempt to divert any business or customer of any Noodles & Company Restaurant to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associate
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, during the term of the franchise agreement, a franchisee is restricted from involvement in a Competitive Business without prior written consent from Noodles & Company.
The restricted geographic areas include: the franchisee's Protected Area, a 15-mile radius from the franchisee's Noodles & Company Restaurant, a 15-mile radius of any Noodles & Company Restaurant, and any Designated Market Area (as defined by Nielsen Media Research) where a Noodles & Company Restaurant is located.
A Competitive Business is defined as any business that operates or franchises one or more restaurants where sales of specific dishes (noodle, pasta, Asian, Italian, or Mediterranean dishes) constitute more than 10% of restaurant operating revenues, or that are substantially similar to the Noodles & Company concept, or that operate in a fast casual or quick casual format. However, these restrictions do not apply to the ownership or operation of other Noodles & Company restaurants licensed by Noodles & Company or its affiliates, ownership of less than 5% of a class of securities listed on a public stock exchange, or any restaurant concept whose per person average check is more than 50% higher or lower than Noodles & Company's average check for the same period.