What does the Area Development Agreement for Noodles & Company require the franchisee to do?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
ation. If we decide to enter into an ADA with you, the ADA will require you to develop and open an agreed-upon number of Noodles & Company restaurants under a development schedule and within the geographic area and defined trade areas, all as described in the ADA and the
attached exhibits. A copy of our current form of Area Development Agreement is attached as Exhibit B.
After the ADA has been executed, you must sign our then-current form of franchise agreement (the "Franchise Agreement") for each Noodles & Company restaurant that we agree you may open, which may be different than our current form of Franchise Agreement attached hereto as an exhibit. Each Franchise Agreement will grant you the right to own and operate a single Noodles & Company restaurant at an agreed-upon location. A copy of our current form of Franchise Agreement is attached as Exhibit C.
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.
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 Franchise Disclosure Document, the Area Development Agreement (ADA) requires franchisees to develop and open an agreed-upon number of Noodles & Company restaurants within a specific geographic area and defined trade areas, following a development schedule outlined in the ADA and its exhibits. Noodles & Company sells franchises only as part of a multi-unit area development agreement, with a minimum commitment of three restaurants. Single-unit development contracts are not offered.
Before entering into an ADA, prospective franchisees, referred to as Franchised Area Operators or Area Operators, must submit personal, financial, and business information for Noodles & Company's review. If Noodles & Company determines it is in their best interest to consider the applicant, they may request additional information.
After the ADA is executed, the franchisee must sign Noodles & Company's then-current form of franchise agreement for each restaurant they are approved to open. This franchise agreement grants the right to own and operate a single Noodles & Company restaurant at an agreed-upon location. It is important to note that the franchise agreement signed for each location may differ from the current form attached as an exhibit to the FDD.