Does Noodles & Company reserve the right to operate and franchise other concept restaurants?

According to the 2025 Noodles & Company Franchise Disclosure Document, Noodles & Company retains specific rights regarding its brand and operations. Noodles & Company explicitly reserves the right to operate, franchise, and license others to operate other concept restaurants. This means that while franchisees are granted the right to operate a Noodles & Company restaurant, Noodles & Company maintains the ability to develop and operate different restaurant concepts, even if they compete with the existing Noodles & Company franchise.

This reservation of rights has several implications for potential Noodles & Company franchisees. It means that Noodles & Company could introduce new restaurant brands or concepts that might compete with existing Noodles & Company locations. This could potentially draw customers away from the franchisee's restaurant, impacting their revenue and profitability. The franchisee's agreement does not prevent Noodles & Company from creating competing businesses.

It is common for franchisors to reserve certain rights to ensure flexibility and growth of the overall brand. However, prospective franchisees should carefully consider the potential impact of these reserved rights on their investment. It would be prudent for a potential franchisee to discuss these competitive risks with Noodles & Company during their due diligence process and to fully understand the company's plans for future brand development and diversification.