Are protected areas under any Franchise Agreement excluded from Non-Traditional Venues for Noodles & Company?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) You acknowledge, however, that certain locations within the Development Area are by their nature unique and separate in character from the sites to which we intend to grant you a franchise or area Development Rights pursuant to this Agreement; such sites are referred to as "Non-Traditional Venues." As a result, you agree that Non-Traditional Venues are excluded from the Development Area (and any Protected Area under any Franchise Agreement) and we shall have the right to develop (by direct ownership, franchising, licensing or other means) such locations, even if such sites are located within the Development Area (and any Protected Area under any Franchise Agreement) and regardless of the proximity of such sites to any Noodles & Company restaurant for which you have or might have in the foreseeable future a franchise.
Non-Traditional Venues include, for example: (i) transportation facilities, including airports, train stations, subways and rail, and bus stations; (ii) military bases and government offices; (iii) sports facilities, including stadiums and arenas; (iv) amusement parks, zoos, and convention centers; (v) car and truck rest stops, and travel centers and Limited Access Highway oasis and rest and service areas; (vi) casinos, (vii) food courts; (viii) Indian reservations; and (ix) museums.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, Non-Traditional Venues are excluded from any Protected Area under any Franchise Agreement. Noodles & Company retains the right to develop these Non-Traditional Venues through direct ownership, franchising, licensing, or other means, even if they are located within a franchisee's Protected Area. This means that a franchisee's Protected Area does not extend to Non-Traditional Venues.
This exclusion allows Noodles & Company to pursue opportunities in locations that may not be suitable for a traditional franchise model. These venues are considered unique and separate in character from typical franchise sites. Examples of Non-Traditional Venues include transportation facilities like airports and train stations, military bases, sports facilities, amusement parks, rest stops, casinos, food courts, Indian reservations, and museums.
For a prospective franchisee, this means that while they are granted a Protected Area, Noodles & Company can still establish locations within that area in Non-Traditional Venues. This could potentially impact the franchisee's business by introducing competition within their Protected Area, although the unique nature of these venues may cater to a different customer base. Franchisees should consider the potential impact of Non-Traditional Venues when evaluating a franchise location.
It is important for potential franchisees to understand the implications of this exclusion and how it might affect their business. They should discuss with Noodles & Company the potential for Non-Traditional Venues within their desired territory and how the franchisor plans to manage these locations to minimize any potential impact on existing franchisees.