factual

Besides California, which other states' franchise registration/disclosure laws exempt franchisees from the acknowledgements in clauses (c), (d), and (e) of the Noodles & Company franchise agreement?

Noodles_Company Franchise · 2025 FDD

Answer from 2025 FDD Document

The acknowledgments in clauses (c), (d), and (e) below apply to all franchisees and franchises except not to any franchisees and franchises that are subject to the state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.

Source: Item 23 — RECEIPT (FDD pages 99–350)

What This Means (2025 FDD)

According to the 2025 Noodles & Company Franchise Disclosure Document, franchisees in certain states with franchise registration/disclosure laws are exempt from specific acknowledgments in clauses (c), (d), and (e) of the franchise agreement. These states, in addition to California, include Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. This exemption means that franchisees in these states do not have to acknowledge certain statements regarding their independent investigation, business risks, or the competitive nature of the restaurant industry.

For a prospective Noodles & Company franchisee, this exemption could be significant. Specifically, the acknowledgements in clauses (c) and (d) relate to the franchisee's understanding of the business risks, the competitive restaurant industry, and the importance of their own business abilities. If these acknowledgements do not apply, it could offer some protection against claims by Noodles & Company that the franchisee fully understood and accepted these risks.

It is important for prospective franchisees to understand the implications of these exemptions and how they might affect their rights and obligations under the franchise agreement. Franchisees should consult with a legal professional to fully understand the protections afforded to them under the franchise laws of their specific state.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.