Does the proprietary information for Noodles & Company include site selection criteria for restaurants?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
"Confidential Information" – Our proprietary and confidential information relating to the development and operation of Noodles & Company Restaurants, including: (1) ingredients, recipes and methods of preparation and presentation of authorized 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, contract terms, and pricing for authorized food products, materials, supplies and equipment; (5) knowledge of operating results and financial performance of Noodles & Company Restaurants, other than Noodles & Company Restaurants you own; (6) methods of inventory control, storage, product handling, training, food cost and management relating to Noodles & Company Restaurants; (7) computer systems and software programs used or useful in Noodles & Company Restaurants; (8) this Agreement and the terms hereof; and (9) any information that we provide you that is labeled proprietary or confidential.
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, the brand's proprietary information includes site selection criteria for its restaurants. This means that the specific methods, standards, and knowledge Noodles & Company uses to evaluate and approve locations are considered confidential and are part of the intellectual property a franchisee gains access to.
Noodles & Company provides general guidance in site selection to Area Operators and will give franchisees their site selection criteria. Franchisees are responsible for finding proposed restaurant sites and submitting them for review with the required site-specific information. The Real Estate Site Approval Committee meets approximately every two weeks to review potential sites. Factors considered for site approval include the general location, neighborhood, demographic information, traffic patterns, access, visibility, site economics, the location of other food establishments, and the physical characteristics of the site.
This proprietary information is crucial for maintaining brand consistency and ensuring that new locations have the best possible chance of success. However, the FDD also states that Noodles & Company does not warrant or represent the suitability of a site, and the franchisee is ultimately responsible for the decision to lease or purchase a location. Franchisees must also get written consent from Noodles & Company before entering into any lease for an approved site. This indicates that while Noodles & Company provides its expertise, the franchisee bears the final responsibility for the site's performance.