Within what radius of a Noodles & Company Restaurant are you prohibited from owning or operating a competitive business?
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:
(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 Noodles & Company's 2025 Franchise Disclosure Document, during the term of the franchise agreement, franchisees are restricted from engaging in any Competitive Business without prior written consent from Noodles & Company. This restriction applies to owning, maintaining, advising, being employed by, consulting for, making loans to, operating, or having an ownership interest in a Competitive Business.
The geographic scope of this restriction includes (1) the Protected Area assigned to the franchisee, (2) a 15-mile radius from the franchisee's Noodles & Company Restaurant, (3) a 15-mile radius of any Noodles & Company Restaurant, or (4) the entire United States. The definition of "Competitive Business" includes businesses that operate or franchise restaurants with more than 10% of their revenue from Specified Dishes, businesses substantially similar to the Noodles & Company concept, or businesses operating in a fast-casual or quick-casual format.
After the termination or expiration of the franchise agreement, these restrictions continue for a period of two years. The restrictions apply not only to the franchisee but also to their Owners. However, these obligations cease after the second anniversary of the date the franchisee ceases to have an ownership interest or ceases to render services to the Franchisee. These non-compete obligations are designed to protect Noodles & Company's market share and brand integrity by preventing former franchisees from leveraging their knowledge of the Noodles & Company system to compete against it.