Does Noodles & Company's approval of a site for a restaurant constitute a warranty or representation of its suitability?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither our approval of the premises nor any information communicated to you regarding our standard site selection criteria for Noodles & Company restaurants will constitute a warranty or representation of any kind, express or implied, as to the suitability of the site for a Noodles & Company restaurant. Our approval of the proposed site merely signifies that we are willing to grant a franchise for a Noodles & Company restaurant at the site. The decision to enter into a lease or purchase agreement for a site is solely the responsibility of the franchisee. Noodles & Company is not responsible for financial outcomes associated with site selection. Your Noodles & Company restaurant may not be closed or relocated without first obtaining our written consent. (Franchise Agreement, Section 2.01; Area Development Agreement, Section 3.02).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–48)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the franchisor's approval of a site does not constitute a warranty or representation of its suitability. While Noodles & Company provides guidance in site selection and reviews submitted Site Packages, this approval merely indicates a willingness to grant a franchise at that location. The ultimate decision to lease or purchase a site rests solely with the franchisee.
Noodles & Company explicitly states that it is not responsible for financial outcomes tied to site selection. Franchisees bear the responsibility of conducting their own due diligence, including consulting with legal and real estate professionals, before committing to a location. This is a standard practice in franchising, where franchisees are generally expected to perform independent research to assess the viability of a site.
This policy places the onus of risk assessment on the franchisee. While Noodles & Company offers support and criteria for site selection, franchisees must recognize that their business acumen and independent investigation are crucial in determining the potential success of a location. The franchisee also cannot close or relocate their Noodles & Company restaurant without written consent from the franchisor.