What restrictions are placed on the Operating Partner's other business activities while managing a Noodles & Company franchise?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Operating Partner: (a) shall exert full-time and best efforts to the development and operation of your Noodles & Company restaurants and all other Noodles & Company restaurants you own; and (b) may not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitments or otherwise may conflict with your obligations hereunder. You agree to provide us with an executed copy of any arrangement, agreement, or contract, and all amendments thereto, with your Operating Partner. We shall have no responsibility, liability or obligation to any party to any such arrangement, agreement, or contract, or any amendments thereto, on account of our approval thereof or otherwise, and you agree to indemnify and hold us, and our Affiliates if applicable, harmless with respect thereto. Your Noodles & Company restaurants at all times must be managed by your Operating Partner or by an on-site general or assistant manager or a shift supervisor who has completed the appropriate training programs.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, the Operating Partner is significantly restricted in their outside business activities. The Operating Partner must dedicate their full-time efforts to the development and operation of the Noodles & Company restaurants owned by the franchisee.
Specifically, the Operating Partner is prohibited from engaging in any other business or activity, whether directly or indirectly, that demands substantial management responsibility or time commitments. This restriction also extends to any activities that might conflict with the Operating Partner's obligations under the Franchise Agreement.
This requirement ensures that the Operating Partner's focus remains entirely on the Noodles & Company business, preventing divided attention that could negatively impact the restaurant's performance. The franchisee must also provide Noodles & Company with a copy of any agreement or contract with the Operating Partner, including any amendments, allowing Noodles & Company to monitor compliance and potential conflicts of interest. This is a common practice in franchising to protect the brand and ensure consistent operations.