After what period following the cessation of ownership or services to the Franchisee are restrictions on Competitive Businesses no longer applicable for a Noodles & Company franchisee?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, you will have no obligation under Section 5 or Section 6 after the second anniversary of the later of (a) the date you cease to have an ownership interest in Franchisee or (b) the date you cease to render services to Franchisee.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, a franchisee's obligations regarding competitive businesses end two years after the later of two events: either the date the franchisee ceases to have an ownership interest in the franchise, or the date they cease providing services to the franchise.
This means that for a period of two years after a franchisee exits the Noodles & Company system, they are restricted from engaging in activities that could be considered competitive. These restrictions are in place to protect Noodles & Company's market position and confidential information. The restrictions apply not only to the former franchisee but also to their owners, preventing them from directly or indirectly participating in a competitive business.
It is important for potential Noodles & Company franchisees to understand the scope and duration of these non-compete obligations. Franchisees should carefully consider these restrictions, especially if they plan to remain in the restaurant industry or a related field after leaving the Noodles & Company system. The definition of 'Competitive Business' is broad, covering restaurants with a significant portion of revenue from similar dishes or operating in a similar format, so franchisees should evaluate how this definition might impact their future business endeavors.