Does Noodles & Company have the right to operate Noodles & Company restaurants outside of my Development Area?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for the rights specifically granted to you, we reserve the following rights:
- (1) To operate and license others to operate Noodles & Company restaurants at any location outside of your Development Area.
- (2) To operate and license others to operate Noodles & Company restaurants at any location within your Development Area (other than within the Protected Area for any of your then-operating Noodles & Company restaurants) after the Area Development Agreement terminates or expires.
Source: Item 12 — TERRITORY (FDD pages 48–53)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, Noodles & Company retains the right to operate and license others to operate Noodles & Company restaurants at any location outside of a franchisee's Development Area. This means that while a franchisee is granted rights to develop Noodles & Company restaurants within a specific Development Area, Noodles & Company is not restricted from opening or franchising restaurants outside of that area. This applies as long as the Area Development Agreement is in effect.
Noodles & Company also reserves the right to operate and license restaurants within the Development Area after the Area Development Agreement terminates or expires, except within the Protected Area of any operating Noodles & Company restaurants. This implies that the franchisee's exclusive rights within their Development Area are limited to the duration of the Area Development Agreement and the Protected Area around their restaurants.
This reservation of rights is a standard practice in franchising, allowing Noodles & Company to expand its brand presence and explore different market opportunities without being constrained by the Development Area agreements. Prospective franchisees should be aware that their Development Area does not grant them exclusive rights to the Noodles & Company brand in the broader market, and they may face competition from other Noodles & Company restaurants outside their designated area.