During the term, can I consult for a competitive business within a 15-mile radius of any Noodles & Company Restaurant?

According to the 2025 Noodles & Company FDD, during the term of the franchise agreement, franchisees are restricted from engaging in activities that could be seen as competitive to Noodles & Company. Specifically, without prior written consent from Noodles & Company, a franchisee cannot own, maintain, advise, be employed by, consult for, make loans to, operate, engage in, or have an ownership interest in any competitive business. This restriction applies if the competitive business is located within the franchisee's protected area, within a 15-mile radius of the franchisee's Noodles & Company Restaurant, within a 15-mile radius of any Noodles & Company Restaurant, or even anywhere in the United States.

This non-compete clause is in effect during the entire term of the franchise agreement. After the agreement expires or terminates, a similar non-compete clause remains in effect for two years. This post-term covenant also prevents involvement with a competitive business within the protected area, a 15-mile radius of any Noodles & Company Restaurant, or in any Designated Market Area where a Noodles & Company Restaurant is located. However, these obligations end two years after the franchisee no longer has an ownership interest or provides services to the franchise.

Noodles & Company also retains the right to modify these restrictions. The FDD states that Noodles & Company can reduce the scope of any covenant, including the non-compete agreement, at its discretion with written notice to the franchisee. Franchisees are obligated to comply with these modifications immediately, and the changes are fully enforceable. This clause also states that any claims the franchisee may have against Noodles & Company do not provide a defense against the enforcement of these covenants.

These restrictions are acknowledged by Noodles & Company and the franchisee, recognizing the franchisee's general skills and opportunities to use them in other ways, ensuring that the enforcement of these covenants does not deprive the franchisee of their ability to earn a living. The agreement also specifies that if any part of the non-compete agreement is deemed unenforceable, it should be modified to the fullest extent permissible under the law to protect Noodles & Company's interests. Noodles & Company can also seek injunctive relief against any conduct that violates these terms, and the franchisee is responsible for Noodles & Company's costs and expenses, including attorney fees, if Noodles & Company prevails in enforcing the agreement.