What agreement must be signed to review confidential materials related to the potential purchase of a company-operated Noodles & Company restaurant?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are interested in purchasing one or more company-operated restaurants that we might make available from time to time, in lieu of the procedure described in the preceding paragraphs, you will first sign a letter of intent regarding the potential purchase. If you wish to review any of our confidential materials in connection with your potential purchase of company-operated Restaurants, you must sign a Confidentiality Agreement. If we agree to sell you one or more company operated restaurants, and you and we agree on the terms of the transaction, you and we will then execute an Asset Purchase Agreement, the general form of which is attached as Exhibit I. At closing, you and we will also execute a Franchise Agreement (as well as applicable addenda thereto that reflect the terms of the Asset Purchase Agreement) for each Restaurant and an ADA pursuant to which you will develop an agreed-upon number of restaurants.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 10–12)
What This Means (2025 FDD)
According to the 2025 Noodles & Company FDD, if you are interested in purchasing one or more company-operated restaurants, you must first sign a letter of intent regarding the potential purchase. To review any confidential materials related to the potential purchase, you are required to sign a Confidentiality Agreement. This agreement ensures that sensitive business information remains protected during the evaluation process.
After signing a Confidentiality Agreement, prospective Noodles & Company franchisees gain access to internal data and documents necessary for making an informed decision about purchasing a company-operated restaurant. This may include financial records, operational procedures, and other proprietary information that is not publicly available. Reviewing these materials is a critical step in assessing the viability and potential profitability of the restaurant.
If Noodles & Company agrees to sell you one or more company-operated restaurants, and both parties agree on the terms, an Asset Purchase Agreement will be executed. Following this, a Franchise Agreement, along with any applicable addenda, will be signed for each restaurant. Additionally, an Area Development Agreement (ADA) will be put in place, outlining the development of an agreed-upon number of restaurants. These agreements formalize the transfer of ownership and the ongoing franchise relationship between Noodles & Company and the franchisee.