What characteristics must the proposed transferee's owners possess to be approved for a Noodles & Company franchise transfer?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) the proposed transferee must be a corporation, partnership, limited liability company or other legal entity; transferee and its owners must provide us on a timely basis all information we request, and the owners must be individuals acting in their individual capacities who are of good character and reputation, who must have sufficient business experience, aptitude and financial resources to develop Noodles & Company restaurants pursuant to this Agreement, and who must otherwise meet our then current standards for approval;
- (c) the proposed transferee may not be, or become, an entity, or be, or become, affiliated with an entity, that is a Publicly Held Entity;
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, if a franchisee desires to transfer their development rights, the proposed transferee's owners must meet specific criteria to gain approval. These owners must be individuals acting in their individual capacities and should demonstrate good character and reputation.
Furthermore, the owners must possess sufficient business experience, aptitude, and financial resources to successfully operate a Noodles & Company restaurant. The proposed transferee cannot be a Publicly Held Entity or affiliated with one, ensuring that the business remains privately controlled.
These conditions ensure that any new owner is well-qualified and capable of maintaining the standards and success of the Noodles & Company franchise. By setting these requirements, Noodles & Company aims to protect its brand and ensure consistent quality across all franchise locations.