factual

Within what radius of a Noodles & Company Restaurant are franchisees prohibited from engaging in a Competitive Business?

Noodles_Company Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (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) any Designated Market Area (as defined by Nielsen Media Research) where a Noodles & Company Restaurant is located.

Source: Item 23 — RECEIPT (FDD pages 99–350)

What This Means (2025 FDD)

According to Noodles & Company's 2025 Franchise Disclosure Document, both during the term of the agreement and for two years after, franchisees are restricted from involvement with a Competitive Business within certain geographic boundaries. Specifically, without prior written consent from Noodles & Company, franchisees (and their owners) cannot own, maintain, advise, be employed by, consult for, make loans to, operate, engage in, or have an ownership interest in any Competitive Business.

The restricted areas include (1) the franchisee's Protected Area, (2) a 15-mile radius from the franchisee's Noodles & Company Restaurant, (3) a 15-mile radius of any Noodles & Company Restaurant, or (4) any Designated Market Area (as defined by Nielsen Media Research) where a Noodles & Company Restaurant is located.

A Competitive Business is defined as any business that operates or franchises one or more restaurants where sales of specific dishes (noodle, pasta, Asian, Italian, or Mediterranean dishes) constitute more than 10% of operating revenues, or that are substantially similar to the Noodles & Company concept, or that operate in a fast casual or quick casual format. However, these restrictions do not apply to the ownership or operation of other Noodles & Company restaurants, ownership of less than 5% of a class of publicly traded securities, or any restaurant concept with a per-person average check more than 50% higher or lower than Noodles & Company's.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.