Can Noodles & Company merchandise and distribute goods and services identified by the Marks through channels other than restaurants?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
There are no restrictions on our ability to solicit or accept orders from customers at any location, nor must we compensate you if we solicit or accept orders in your Protected Area. We may, in the future, engage in the wholesale distribution of Noodles & Company products to restaurants, grocery stores, caterers and other outlets under the Marks or other names and marks. Otherwise, we do not currently operate, or franchise the operation of, any other business selling under different trademarks any products or services similar to the products and services offered by Noodles & Company restaurants, and we presently do not have any plans to do so; however, we reserve the right to do so in the future.
We and our affiliates may merchandise and distribute goods and services identified by the Marks (or different proprietary marks) through methods or channels of distribution other than restaurants. You have no right under the Development Agreement or Franchise Agreement to operate any restaurant for which a Franchise Agreement has not been executed.
Source: Item 12 — TERRITORY (FDD pages 48–53)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, Noodles & Company retains the right to merchandise and distribute goods and services identified by their trademarks through channels other than their restaurants. This means that Noodles & Company can sell branded products through various avenues, without providing any compensation to the franchisee.
Specifically, Noodles & Company can engage in wholesale distribution of its products to restaurants, grocery stores, caterers, and other outlets using their trademarks or other names and marks. Additionally, Noodles & Company and its affiliates can merchandise and distribute goods and services identified by the Marks (or different proprietary marks) through methods or channels of distribution other than restaurants.
This reservation of rights allows Noodles & Company to diversify its revenue streams and expand its brand presence beyond traditional restaurant locations. For a franchisee, this means that Noodles & Company could potentially sell products directly competing with the franchisee's restaurant sales through other channels, impacting their revenue. The franchisee has no right to operate any restaurant for which a Franchise Agreement has not been executed.