Is knowledge of operating results of other Noodles & Company restaurants considered trade secret or proprietary information?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
We also consider certain information used in the development and operations of Noodles & Company restaurants, trade secrets and proprietary information. This information includes, but is not limited to:
- (1) ingredients, recipes and methods of preparation and presentation of certain food products;
- (2) site selection criteria for Noodles & Company restaurants and plans and specifications for the development of Noodles & Company restaurants;
- (3) sales, marketing and advertising programs and techniques for Noodles & Company restaurants;
- (4) identity of suppliers and knowledge of specifications, processes, procedures and equipment, and pricing for authorized food products, materials, supplies and equipment;
- (5) knowledge of operating results and financial performance of Noodles & Company restaurants, other than your own Noodles & Company restaurants;
- (6) methods of inventory control, storage, product handling, food cost and management of Noodles & Company restaurants;
- (7) computer systems and software programs; and
- (8) other information and specifications related to the development and operation of Noodles & Company restaurants that are included in the Noodles & Company Operations Manual and in other materials that we provide to you.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 58–60)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, knowledge of operating results and the financial performance of Noodles & Company restaurants, excluding those you own, is considered trade secret and proprietary information. This means that as a franchisee, you are not entitled to know the specific financial details of other Noodles & Company locations.
This classification has several implications. First, Noodles & Company franchisees are obligated to maintain the confidentiality of this information, as outlined in Item 23 regarding Confidential Information. This obligation extends not only during the term of the franchise agreement but also indefinitely afterward. Franchisees must exert their best efforts to prevent unauthorized disclosure and may only disclose such information if Noodles & Company provides written consent.
The designation of operating results as trade secrets protects Noodles & Company's overall business strategy and prevents franchisees from sharing potentially sensitive data with competitors. While franchisees may want to compare their restaurant's performance against others in the system, Noodles & Company restricts access to this data. This is a fairly standard practice in franchising, where maintaining control over sensitive business information is crucial for the franchisor.
Prospective franchisees should be aware that they will not have access to the detailed operating results of other Noodles & Company restaurants. Instead, they should focus on the financial performance of their own location and rely on the franchisor for guidance and support to improve their business. It would be prudent to ask Noodles & Company what aggregate or anonymized performance data they provide to franchisees to help benchmark their progress.