What condition must be met for a modification to the Noodles & Company franchise agreement to be valid?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
| s. Modification of the agreement | Sections 10.01 and 20.05 | Generally, no modification except by written agreement signed by both parties. However, the Noodles & Company Operations Manual and the System are subject to change by us. We can increase the total aggregate amount of advertising and marketing fund we can require you to pay (currently a maximum of 5.5% of Net Royalty Sales) if 66.0% of the then existing Noodles & Company restaurants vote to approve such an increase. |
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 63–83)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, any modification to the franchise agreement must be in writing and signed by both parties to be considered valid. This requirement ensures that all changes are formally documented and agreed upon by both Noodles & Company and the franchisee, preventing misunderstandings or disputes based on verbal agreements or informal communications.
This standard practice protects both the franchisor and the franchisee by providing a clear record of any changes to the original agreement. It aligns with common franchising practices, where written contracts and amendments are essential for maintaining clarity and legal enforceability. Franchisees should be diligent in ensuring that any agreed-upon modifications are properly documented and signed.
However, the FDD also notes that Noodles & Company has the right to change the Operations Manual and the System. Additionally, Noodles & Company can increase the total aggregate amount of the advertising and marketing fund that franchisees are required to pay (currently a maximum of 5.5% of Net Royalty Sales) if 66.0% of the then existing Noodles & Company restaurants vote to approve such an increase. These exceptions highlight that while the core franchise agreement requires written modification, certain operational and financial aspects can be altered under specific conditions without requiring a formal amendment to each individual franchise agreement.