Is there a restriction on the proximity of Non-Traditional Venues to existing Noodles & Company restaurants?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge, however, that certain locations within the Development Area are by their nature unique and separate in character from the sites to which we intend to grant you a franchise or area Development Rights pursuant to this Agreement; such sites are referred to as "Non-Traditional Venues." As a result, you agree that Non-Traditional Venues are excluded from the Development Area (and any Protected Area under any Franchise Agreement) and we shall have the right to develop (by direct ownership, franchising, licensing or other means) such locations, even if such sites are located within the Development Area (and any Protected Area under any Franchise Agreement) and regardless of the proximity of such sites to any Noodles & Company restaurant for which you have or might have in the foreseeable future a franchise.
Non-Traditional Venues include, for example: (i) transportation facilities, including airports, train stations, subways and rail, and bus stations; (ii) military bases and government offices; (iii) sports facilities, including stadiums and arenas; (iv) amusement parks, zoos, and convention centers; (v) car and truck rest stops, and travel centers and Limited Access Highway oasis and rest and service areas; (vi) casinos, (vii) food courts; (viii) Indian reservations; and (ix) museums.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, Non-Traditional Venues are excluded from any protected area a franchisee might have. Noodles & Company retains the right to develop these venues, regardless of their proximity to existing Noodles & Company restaurants. This means that even if a franchisee has a protected territory, Noodles & Company can still open or franchise a location in a Non-Traditional Venue within that territory.
Non-Traditional Venues are defined as locations that are unique and separate in character from typical franchise sites. Examples of Non-Traditional Venues include transportation facilities like airports and train stations, military bases, sports facilities, amusement parks, casinos, food courts, Indian reservations, and museums.
This policy has significant implications for prospective Noodles & Company franchisees. While a franchisee may be granted a Development Area or Protected Area, this protection does not extend to Non-Traditional Venues. Therefore, a franchisee could face competition from another Noodles & Company location within their territory if it is located in a Non-Traditional Venue. This is a common practice in franchising, as franchisors often want the flexibility to pursue opportunities in unique locations without being restricted by territorial agreements.