What conditions must be met before Noodles & Company is obligated to grant a franchise agreement for any proposed site?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
All such information shall be verified by you and your Principal Owners as being complete and accurate in all respects, shall be submitted to us in accordance with our requirements and will be relied on by us in determining whether to grant a franchise for the proposed Noodles & Company restaurant. We may refuse to grant you a franchise for a Noodles & Company restaurant; (i) if you fail to demonstrate sufficient financial and management capabilities to properly develop and operate the proposed Noodles & Company restaurant and the then-existing Noodles & Company restaurants you and your Affiliates own; (ii) you have failed to properly develop and operate on a continuous basis the then-existing Noodles & Company restaurants you and your Affiliates own; (iii) you have failed to fully comply with this Agreement and any franchise agreements between you and us, including the Development Schedule within the Development Periods; or (iv) you are ineligible to hold or will be, in our opinion, unable to obtain a liquor license for each Noodles & Company restaurant contemplated by this Agreement. We will evaluate such financial and management capabilities in accordance with the then-current standards we use to establish Noodles & Company restaurants in other comparable market areas. We may also require you to submit a business plan for any proposed site. The absence of any of the failures described in Section 3.03 (i) through (iv) herein is each a condition precedent to any obligation of Noodles & Company to grant a franchise agreement for any proposed site or other performance of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, Noodles & Company's obligation to grant a franchise agreement for any proposed site is contingent upon certain conditions being met. These conditions include demonstrating sufficient financial and management capabilities to properly develop and operate the proposed Noodles & Company restaurant, as well as any existing Noodles & Company restaurants owned by the franchisee or their affiliates.
The franchisee must also have properly developed and operated any existing Noodles & Company restaurants continuously. Compliance with the franchise agreement and any development schedules is also required. Additionally, the franchisee must be eligible to obtain a liquor license for each Noodles & Company restaurant contemplated by the agreement.
The absence of failures in demonstrating financial capabilities, continuous operation, franchise agreement compliance, and liquor license eligibility are each a condition that must be met before Noodles & Company is obligated to grant a franchise agreement. Noodles & Company will evaluate financial and management capabilities based on their standards for establishing restaurants in comparable market areas and may require a business plan for the proposed site.