After what period following the cessation of ownership or service to the Franchisee are individuals no longer obligated under Sections 5 or 6 regarding competitive business activities for Noodles & Company?

According to Noodles & Company's 2025 Franchise Disclosure Document, individuals are no longer obligated under Sections 5 or 6 regarding competitive business activities after a specific period. This period is defined as the second anniversary of the later of two dates: either the date the individual ceases to have an ownership interest in the Noodles & Company franchise, or the date they cease to render services to the franchise.

In simpler terms, the non-compete obligations outlined in Sections 5 and 6 of the franchise agreement expire two years after the later of when someone stops being an owner or stops working for the Noodles & Company franchise. This means that if someone remains an owner but stops working at the franchise, the two-year clock starts ticking from when they stop working. Conversely, if they continue working but sell their ownership stake, the clock starts when they sell their stake. The non-compete lasts for two years from that later date.

This provision provides a clear timeline for franchisees and their owners regarding their obligations after they leave the Noodles & Company system, allowing them to plan future business ventures with the knowledge of when they can engage in competitive activities without violating the franchise agreement. It is important to note that this applies to both the franchisee and their owners, ensuring that all parties involved are aware of their post-termination obligations.