During the term, can I operate a competitive business within a 15-mile radius of my Noodles & Company Restaurant?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 franchise agreement, franchisees are restricted from engaging in any competitive business within a specific geographic area. 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 to businesses located within the franchisee's Protected Area, a 15-mile radius of the franchisee's Noodles & Company Restaurant, a 15-mile radius of any Noodles & Company Restaurant, or any Designated Market Area where a Noodles & Company Restaurant is located.
This non-compete clause is in effect during the entire term of the Franchise Agreement. The term of the agreement is 20 years, starting on the date of the opening of the Noodles & Company Restaurant.
The FDD also states that Noodles & Company has the right to reduce the scope of any covenant set forth in the agreement, or any portion thereof, without the franchisee's consent, effective immediately upon written notice to the franchisee. The franchisee must comply with any covenant as modified, which will be fully enforceable. This means that Noodles & Company can modify the non-compete clause during the franchise term.