What is the geographic limit within which I am prohibited from owning a competitive business to Noodles & Company?
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.
-
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 Noodles & Company's 2025 Franchise Disclosure Document, during the term of the franchise agreement, you are restricted from owning or being involved with a competitive business without prior written consent from Noodles & Company. This restriction applies to businesses located within specific geographic boundaries.
The geographic limitations 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, or any Designated Market Area (as defined by Nielsen Media Research) where a Noodles & Company restaurant is located. These restrictions are designed to protect Noodles & Company's market share and brand integrity by preventing franchisees from directly competing with the system.
After the franchise agreement expires or terminates, these restrictions continue for a period of two years. However, there is an exception: these non-compete obligations end two years after the later of (a) the date you cease to have an ownership interest in the Franchisee or (b) the date you cease to render services to the Franchisee. This acknowledges that individual skills and abilities should not be unduly restricted, allowing former franchisees to pursue other opportunities after a reasonable period. Noodles & Company also retains the right to reduce the scope of any covenant set forth in the agreement, or any portion thereof, without franchisee consent, effective immediately upon written notice to the franchisee.