For Noodles & Company, what is the consequence of failing to comply with the permitting and licensing timeline?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You must promptly begin the permitting, licensing and approval process to ensure that construction commences within 60 days of the date the lease or purchase of the premises is consummated. If permitting and licensing is anticipated to take longer than 60 days, you must advise us in writing of the date on which you anticipate obtaining such permits and licenses and the reasons for the extended time period. Failure to comply with this provision is a material breach of the Agreement.
- (m) fail to timely obtain and continue in force all licenses and permits, including liquor licenses necessary to open and construct the restaurant and not cure such failure as soon as possible and in any event within 20 days after receipt of notice unless no cure is possible, in which case there shall be no cure period;;
Each of the foregoing (a) through (q) are material breaches and material defaults.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, franchisees must promptly begin the permitting, licensing, and approval process to ensure construction commences within 60 days of the lease or purchase of the premises. If the permitting and licensing process is expected to take longer than 60 days, the franchisee must inform Noodles & Company in writing, including the anticipated date of permit acquisition and the reasons for the delay.
Failure to comply with the permitting and licensing timeline is considered a material breach of the Franchise Agreement. This means that not adhering to the specified timeframe for obtaining necessary permits and licenses can have significant consequences for the franchisee.
Specifically, failing to obtain and maintain all necessary licenses and permits, including liquor licenses, for restaurant construction and operation, and not rectifying this failure as soon as possible (within 20 days of notice, if a cure is possible), can lead to termination of the Franchise Agreement. This underscores the importance of diligent and timely management of the permitting and licensing process to avoid jeopardizing the franchise.