What is included in the seller's rights concerning the Noodles & Company Restaurants that are considered 'Other Rights'?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for the rights specifically granted to you, we reserve all other rights, including, for example, the following rights:
(i) We reserve the right to manufacture and sell anywhere products that are the same or similar to products sold in Noodles & Company restaurants using brand names that are similar to or the same as the Marks through any channel of distribution, including, for example, grocery stores, supermarkets, convenience stores, caterers and gas stations.
(ii) We reserve the right to sell products and services through other channels of distribution including Internet, wholesale, mail order and catalog.
The Internet is a channel of distribution reserved exclusively to us and you may not independently market on the Internet or conduct e-commerce except as we approve, in our sole discretion.
(iii) We reserve the right to operate and franchise and license others to operate other concept restaurants.
(iv) We reserve the right to develop and/or own other franchise systems for the same or similar products and services using different trademarks than those licensed to you.
(v) We reserve the right to produce, license, manufacture, sell, distribute and market Noodles & Company brand named products, and products bearing other marks, including food and beverage products, clothing, souvenirs, and novelty items through any channel of distribution, including, for example, grocery stores, supermarkets, convenience stores, caterers, and gas stations.
(vi) We reserve the right to purchase or be purchased by, or merge or combine with, competing businesses wherever located.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, Noodles & Company retains all rights except those specifically granted to the franchisee. These include the right to manufacture and sell similar products under similar brand names through various distribution channels like grocery stores and gas stations. Noodles & Company also reserves the right to sell products and services through channels such as the Internet, wholesale, mail order, and catalogs, maintaining exclusive control over Internet marketing and e-commerce unless otherwise approved.
Noodles & Company maintains the right to operate, franchise, and license others to operate other concept restaurants. They can also develop or own other franchise systems offering similar products and services but using different trademarks than those licensed to the franchisee. Additionally, Noodles & Company can produce, license, manufacture, sell, distribute, and market Noodles & Company branded products, including food, beverages, clothing, souvenirs, and novelty items, through any distribution channel.
Finally, Noodles & Company reserves the right to purchase or be purchased by, or merge or combine with, competing businesses, regardless of location. These reserved rights allow Noodles & Company to diversify its business and explore different market segments without being restricted by the agreements with its franchisees, which could potentially intensify competition for franchisees.