During the term of the Noodles & Company franchise, can I directly or indirectly own or have any legal or beneficial interest in a competitive business located in the United States?

According to the 2025 Noodles & Company Franchise Disclosure Document, during the term of the franchise agreement, franchisees are restricted from engaging in competitive business activities within the United States. Specifically, a franchisee cannot directly or indirectly own, have any legal or beneficial interest in, render services to, or give advice to any competitive business. However, there is an exception: a franchisee can hold a 5.0% or less ownership interest in a publicly traded company.

A competitive business is defined as any business that operates or franchises one or more restaurants that meet certain criteria. These criteria include restaurants whose sales of specified dishes (noodle dishes, pasta dishes, Asian dishes, Italian or Mediterranean dishes, and any dishes similar to those on the Noodles & Company menu) collectively constitute more than 10.0% of restaurant operating revenues, restaurants that are the same as or substantially similar to the Noodles & Company concept as it evolves, or restaurants that operate in a fast casual or quick casual format.

This non-competition covenant is designed to protect Noodles & Company's market position and brand integrity. It prevents franchisees from using the knowledge and experience gained from operating a Noodles & Company franchise to benefit a competing business. Prospective franchisees should carefully consider these restrictions and ensure they do not have any conflicting business interests before entering into a franchise agreement with Noodles & Company.