During the term, under what condition can I divert business from a Noodles & Company Restaurant to a competitor?
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.
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, a franchisee is prohibited from diverting or attempting to divert business from any Noodles & Company restaurant to a competitor. This restriction applies whether the diversion is direct or indirect and whether it's done personally or through another entity.
The only way a franchisee can divert business to a competitor during the term is if they obtain prior written consent from Noodles & Company. Without this consent, any action that could harm the goodwill associated with Noodles & Company's marks or system is prohibited.
This restriction is typical in franchise agreements to protect the brand and prevent franchisees from undermining the business. It's important for prospective franchisees to understand that this restriction is in place for the entire duration of the franchise agreement.