Does Noodles & Company reserve the right to develop other franchise systems?

According to the 2025 Noodles & Company Franchise Disclosure Document, Noodles & Company retains specific rights, including the right to develop other franchise systems. Specifically, Noodles & Company reserves the right to develop and/or own other franchise systems for the same or similar products and services, provided they use different trademarks than those licensed to the franchisee. This reservation of rights is standard practice in franchising, allowing the franchisor to explore different market segments or branding strategies without being restricted by existing franchise agreements.

This provision means that a Noodles & Company franchisee could potentially find themselves competing with another franchise system owned by Noodles & Company, although operating under a different brand. While the products and services might be similar, the different trademarks would distinguish the two concepts. This could impact a franchisee's market share and revenue if the other franchise system targets the same customer base.

For a prospective franchisee, it's important to understand the scope of these reserved rights and how they might affect their business. While Noodles & Company cannot operate another Noodles & Company restaurant within the franchisee's protected area (except in Non-Traditional Venues), they could introduce a similar concept under a different brand. Franchisees should inquire about Noodles & Company's plans for developing other franchise systems and how they intend to differentiate those systems from the core Noodles & Company brand to minimize potential competition.