During the term of the Noodles & Company Franchise Agreement, what is the restricted radius from any Noodles & Company Restaurant where I cannot operate a Competitive Business?
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:
- (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.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, during the term of the agreement, you are restricted from operating a Competitive Business within certain areas. Specifically, you cannot own, maintain, advise, be employed by, consult for, make loans to, operate, engage in, or have an ownership interest in any Competitive Business that is located within the Protected Area, a 15-mile radius from your Noodles & Company Restaurant, a 15-mile radius of any Noodles & Company Restaurant, or the United States.
The definition of a "Competitive Business" includes any restaurant that has more than 10% of its revenue from specified dishes (noodle, pasta, Asian, Italian, or Mediterranean dishes), is substantially similar to the Noodles & Company concept, or operates in a fast-casual format. However, these restrictions do not apply to other Noodles & Company restaurants licensed by Noodles & Company or its affiliates, ownership of less than 5% of a publicly traded company's securities, or any restaurant concept with an average check that is more than 50% higher or lower than Noodles & Company's average check.
These restrictions are designed to protect Noodles & Company's market and brand integrity by preventing franchisees from directly competing with existing Noodles & Company locations. The broad geographic scope (including the entire United States) suggests that Noodles & Company aims to prevent franchisees from operating competing concepts anywhere within the country, not just in the immediate vicinity of a Noodles & Company restaurant. Prospective franchisees should carefully consider these restrictions and how they might impact their future business ventures.