What are the conditions that must be met for Noodles & Company to approve a transfer of a franchise?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
-----------------------------------------------------------------------------------------------------------------------------------| | l. Our approval of transfer by | Section 14.01 | We have the right to approve all | | you | | transfers. | | m. Conditions for our approval of transfer | Section 14.02 | Your Noodles & Company restaurant must be open and operating; you must be in compliance with Franchise Agreement and all other Agreements between us; the proposed transferee must be an entity that is not publicly held and meets our qualifications and standards for approval; the proposed transferee must complete all required training; the proposed transferee must agree to be bound by the existing Franchise Agreement and collateral documents or enter into a new Franchise Agreement (at our election); transfer fee must be paid; you must sign a general release and non compete agreement; we must approve price and payment terms; we must waive our right of first refusal; any financing you provide to the proposed transferee must be subordinate to the transferee's obligations to pay amounts due to us; there must have been no change in the law since we entered into the Franchise Agreement that would limit our right as to the proposed transferee; the proposed transferee must obtain assignment of leases from all landlords and obtain liquor and other licenses necessary to operate restaurant; and you must meet any other reasonable requirements we may impose to protect our rights. |
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 63–83)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the company has the right to approve all transfers of a franchise. If you wish to transfer your franchise, there are several conditions that must be met for Noodles & Company to approve the transfer.
First, your Noodles & Company restaurant must be open and operating. You must also be in compliance with the Franchise Agreement and all other agreements between you and Noodles & Company. The proposed transferee must be an entity that is not publicly held and must meet Noodles & Company's qualifications and standards for approval. The transferee must also complete all required training.
Additionally, the proposed transferee must agree to be bound by the existing Franchise Agreement and collateral documents, or enter into a new Franchise Agreement, at Noodles & Company's election. You must pay a transfer fee and sign a general release and non-compete agreement. Noodles & Company must approve the price and payment terms and waive their right of first refusal. Any financing you provide to the proposed transferee must be subordinate to the transferee's obligations to pay amounts due to Noodles & Company. There must have been no change in the law since you entered into the Franchise Agreement that would limit Noodles & Company's right as to the proposed transferee. The proposed transferee must obtain assignment of leases from all landlords and obtain liquor and other licenses necessary to operate the restaurant. Finally, you must meet any other reasonable requirements Noodles & Company may impose to protect their rights.