What happens to the Proprietary Information if the Noodles & Company agreement is not consummated?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You and your Owners, if any, may gain access to parts of Noodles & Company's Confidential Information as a result of investing in Franchisee.
The Confidential Information is proprietary and includes Noodles & Company trade secrets.
You and your Owners hereby agree that while you and they have a legal or beneficial ownership interest in Franchisee and indefinitely thereafter you and they: (a) will not use the Confidential Information in any other business or capacity (such use being an unfair method of competition); (b) will exert best efforts to maintain the confidentiality of the Confidential Information; (c) will not make unauthorized copies of any portion of the Confidential Information disclosed in written, electronic or other form; and (d) will not distribute, disclose, or otherwise cause the distribution of any Noodles & Company Confidential Information.
If you or your Owners cease to have an interest in Franchisee, you and your Owners, if any, must deliver to Noodles & Company any such Confidential Information in your or their possession.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, franchisees and their owners may gain access to Noodles & Company's confidential information as a result of investing in the franchise. This confidential information is considered proprietary and includes Noodles & Company's trade secrets.
While franchisees and their owners have a legal or beneficial ownership interest in the franchise, they must not use the confidential information in any other business or capacity, as this would be considered an unfair method of competition. They must also exert their best efforts to maintain the confidentiality of the information, avoid making unauthorized copies, and prevent the distribution of Noodles & Company's confidential information.
If a franchisee or their owners cease to have an interest in the Noodles & Company franchise, they must return any confidential information in their possession to Noodles & Company. These obligations regarding the use and protection of confidential information extend both during the term of the Franchise Agreement and indefinitely thereafter, ensuring the continued protection of Noodles & Company's proprietary assets.