What amounts is the Buyer required to pay to the Seller at the closing for Noodles & Company franchises?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.a Performance of Obligations. Buyer shall have performed in all material respects all obligations required to be performed by it under this Agreement on or prior to the Closing Date.
- 1.b Documents. Seller shall have received the documents specified in Article X of this Agreement.
- 1.c Business Plan. Seller shall have received the Business Plan, in form and substance reasonably satisfactory to Seller, and all such other information required under Section 5.9 above, all of which shall be satisfactory to Seller.
- 1.d Franchisee Approval. Buyer shall have been approved, in Seller's sole discretion, as a Noodles & Company franchisee or, if Buyer already is a Noodles & Company franchisee, Buyer shall have been approved, in Seller's sole discretion, for expansion. As a condition precedent to Seller's consideration as to whether to grant such approval, Buyer shall have delivered to Seller all documentation and information requested by Seller.
- 1.e Representations. All representations and warranties of Buyer in this Agreement shall be true on and as of the Closing Date.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company FDD, the buyer's obligations at closing involve several conditions that must be met. These conditions primarily revolve around the buyer's performance of obligations, submission of necessary documents, and approval as a franchisee.
The buyer must have fulfilled all obligations under the agreement by the closing date and ensure that the seller receives all required documents as specified in Article X of the agreement. Additionally, the seller needs to receive a business plan from the buyer that is satisfactory to Noodles & Company. The buyer must also secure approval as a Noodles & Company franchisee, or if already a franchisee, obtain approval for expansion. To gain this approval, the buyer is required to provide all necessary documentation and information requested by Noodles & Company.
Furthermore, all representations and warranties made by the buyer in the agreement must be accurate as of the closing date. These conditions ensure that the buyer is fully prepared and capable of operating a Noodles & Company franchise, and that all necessary documentation and approvals are in place before the transaction is finalized. These steps are typical in franchise acquisitions to protect the brand and ensure a smooth transition.