What is the geographic scope of the restriction preventing Noodles & Company franchisees from owning or engaging in a Competitive Business during the term of the Franchise Agreement?
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.
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, franchisees are restricted from owning or being involved in a Competitive Business without prior written consent from Noodles & Company. A Competitive Business is defined as any restaurant that operates or franchises restaurants with over 10% of revenue from specified dishes, that are substantially similar to the Noodles & Company concept, or operate in a fast casual or quick casual format.
The geographic scope of this restriction includes four specific areas. First, the franchisee is restricted within their Protected Area. Second, the restriction applies within a 15-mile radius of the franchisee's Noodles & Company Restaurant. Third, the restriction extends to a 15-mile radius of any Noodles & Company Restaurant. Finally, the restriction covers any Designated Market Area (as defined by Nielsen Media Research) where a Noodles & Company Restaurant is located.
These restrictions prevent a franchisee from operating or being involved with a competing business that could draw customers away from Noodles & Company. The restrictions apply not only to the franchisee but also to their Owners, which includes anyone with a legal or beneficial interest in the franchisee's business entity. This broad geographic scope and coverage of owners aim to protect Noodles & Company's market share and brand integrity within these defined areas.