Are the rights of Noodles & Company under the Franchise Agreement considered cumulative?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Additional Reservation of Rights.
Except for the rights specifically granted to you, we reserve all other rights, including, for example, the following rights:
(i) We reserve the right to manufacture and sell anywhere products that are the same or similar to products sold in Noodles & Company restaurants using brand names that are similar to or the same as the Marks through any channel of distribution, including, for example, grocery stores, supermarkets, convenience stores, caterers and gas stations.
(ii) We reserve the right to sell products and services through other channels of distribution including Internet, wholesale, mail order and catalog.
The Internet is a channel of distribution reserved exclusively to us and you may not independently market on the Internet or conduct e-commerce except as we approve, in our sole discretion.
(iii) We reserve the right to operate and franchise and license others to operate other concept restaurants.
(iv) We reserve the right to develop and/or own other franchise systems for the same or similar products and services using different trademarks than those licensed to you.
(v) We reserve the right to produce, license, manufacture, sell, distribute and market Noodles & Company brand named products, and products bearing other marks, including food and beverage products, clothing, souvenirs, and novelty items through any channel of distribution, including, for example, grocery stores, supermarkets, convenience stores, caterers, and gas stations.
(vi) We reserve the right to purchase or be purchased by, or merge or combine with, competing businesses wherever located.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
Based on the 2025 Noodles & Company Franchise Disclosure Document, the franchisor retains various rights not explicitly granted to the franchisee. Noodles & Company reserves specific rights, including manufacturing and selling similar products under similar brand names through various distribution channels like grocery stores and gas stations. They also retain the right to sell products and services through other channels such as the Internet, wholesale, mail order, and catalogs.
Noodles & Company explicitly reserves the right to operate and franchise other concept restaurants and develop other franchise systems for similar products and services using different trademarks. They can also produce, license, manufacture, sell, distribute, and market Noodles & Company branded products, including food, beverages, clothing, souvenirs, and novelty items, through any distribution channel. Additionally, Noodles & Company reserves the right to purchase or merge with competing businesses.
For a prospective franchisee, this means that while you have the right to operate a Noodles & Company restaurant, the franchisor retains significant control and the ability to operate competing businesses or sell similar products through different channels. This could potentially impact a franchisee's market share or revenue. It is important to understand the scope of these reserved rights and how they might affect your business before investing in a Noodles & Company franchise.