What specific action is prohibited regarding customers of a Noodles & Company Restaurant, both during and after the term of the Franchise Agreement?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.02 In-Term Covenants. During the Term, you shall not, without Noodles & Company's prior written consent, either directly or indirectly, for yourself, or through, on behalf of, or in conjunction with any person, persons, partnership, limited liability company, or corporation:
- (a) Divert or attempt to divert any business or customer of any Noodles & Company Restaurant to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Noodles & Company's Marks or the System.
- (b) [Intentionally omitted]
- (c) Own, maintain, advise, be employed by, consult for, make loans to, operate, engage in or have an ownership interest (including any right to share in revenues or profits) in any Competitive Business which is, or is intended to be located within:
- (1) the Protected Area;
- (2) a radius of 15 miles from your Noodles & Company Restaurant;
- (3) a radius of 15 miles of any Noodles & Company Restaurant; or
- (4) the United States.
- 6.03. Post-Term Covenants. For a continuous uninterrupted period commencing upon the expiration or termination of this Agreement and for two years thereafter, you shall not, without Noodles & Company's prior written consent, either directory or indirectly, for yourself, or through, on behalf of, or in conjunction with any person, persons, partnership, limited liability company, or corporation:
- (a) Divert or attempt to divert any business or customer of any Noodles & Company Restaurant to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Noodles & Company's Marks or the System.
- (b) [Intentionally omitted]
- (c) Own, maintain, advise, be employed by, consult for, make loans to, operate, engage in or have an ownership interest (including any right to share in
revenues or profits) in any Competitive Business which is, or is intended to be located within:
(1) the Protected Area;
(2) a radius of 15 miles from your Noodles & Company Restaurant;
(3) a radius of 15 miles of any Noodles & Company Restaurant; or
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, franchisees are prohibited from diverting or attempting to divert any business or customer of any Noodles & Company Restaurant to any competitor, either by direct or indirect inducement, or performing any other act injurious or prejudicial to the goodwill associated with Noodles & Company's Marks or the System. This restriction applies both during the term of the Franchise Agreement and for a period of two years after its expiration or termination.
This covenant aims to protect Noodles & Company's customer base and brand reputation by preventing franchisees from leveraging their knowledge and access to customers to benefit competing businesses. It ensures that franchisees remain committed to the Noodles & Company system and do not exploit their position for personal gain at the expense of the franchise.
For a prospective franchisee, this means that upon leaving the Noodles & Company system, they cannot actively solicit or encourage Noodles & Company customers to switch to a competing restaurant. This restriction is in place to maintain the integrity of the Noodles & Company brand and prevent unfair competition from former franchisees. Failing to comply with this covenant could result in legal action and financial penalties for the franchisee.