Under what conditions are Noodles & Company franchisees' restrictions on disclosure and use of Confidential Information not applicable?

According to Noodles & Company's 2025 Franchise Disclosure Document, franchisees' restrictions on disclosing and using confidential information do not apply if the information or techniques become generally known in the restaurant industry. However, this exception has two important conditions. First, the information becoming generally known cannot be due to the franchisee's own disclosure or someone else's wrongful disclosure. Second, the franchisee must obtain Noodles & Company's prior written consent before disclosing or using the information.

This means that a Noodles & Company franchisee cannot freely use or reveal information, even if it is widely known, without first getting permission from Noodles & Company. This protects Noodles & Company's proprietary information and business methods, even as general industry knowledge evolves.

For a prospective franchisee, this highlights the importance of carefully managing confidential information and seeking approval from Noodles & Company before using or disclosing anything that might be considered confidential. Failure to do so could result in a breach of the franchise agreement. It is also important to note that at the end of the franchise term, the franchisee and their owners must return all confidential information to Noodles & Company.