What is the geographic scope of the non-compete clause for you and your Owners after the expiration or termination of the Development Agreement with Noodles & Company?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
(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.
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For a continuous uninterrupted period commencing upon the expiration or termination of the Franchise Agreement and for two years thereafter, you and your Owners, 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 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;
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company FDD, after the expiration or termination of the Franchise Agreement, both you and your Owners are subject to a non-compete clause for two years. This clause restricts you from engaging in or having an ownership interest in any Competitive Business within specific geographic areas without Noodles & Company's prior written consent.
The geographic scope of this non-compete includes:
- The Protected Area of your former Noodles & Company restaurant.
- A 15-mile radius from your former Noodles & Company restaurant.
- A 15-mile radius of any Noodles & Company restaurant.
- The entire United States.
This means that for two years after leaving the Noodles & Company system, you and your Owners cannot be involved with a competing business within these defined areas. This restriction could significantly limit your ability to operate or be involved in a similar business, depending on the location of your former restaurant and other Noodles & Company locations. The clause also prevents you from diverting business or customers from any Noodles & Company Restaurant to a competitor or performing any act that is injurious to the goodwill associated with Noodles & Company's Marks or the System.