For Noodles & Company, what constitutes grounds for termination of the Franchise Agreement related to payments?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
If we do not receive the fully executed Franchise Agreement and payment of the Franchise Fee as required hereunder, we may revoke our offer to grant you a franchise to operate a Noodles & Company restaurant at the proposed site and may revoke our acceptance of the proposed site.
If an audit or investigation conducted by us discloses that Area Operator has knowingly maintained false books or records, or submitted false reports to us, or knowingly understated its Net Royalty Sales or withheld the reporting of same as herein provided;
shall default in any material obligations of any Lease, any agreement between Noodles & Company (or its Affiliate) and Area Operator, any obligations to any Advertising Cooperative of which you are a member or to any vendor of Noodles & Company related Proprietary and Non-Proprietary Products, construction suppliers, or providers of services, and not cure such failure as soon as possible
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, several actions or failures related to financial obligations can lead to the termination of the Franchise Agreement. Specifically, if a prospective franchisee fails to submit the fully executed Franchise Agreement along with the required Franchise Fee, Noodles & Company can revoke the offer to grant the franchise and reject the proposed site.
Additionally, if an Area Operator knowingly maintains false books or records, submits false reports, understates Net Royalty Sales, or withholds the reporting of sales, this can result in the termination of the agreement.
Furthermore, the Franchise Agreement can be terminated if the franchisee defaults in any material obligations of any Lease, any agreement between Noodles & Company (or its Affiliate) and Area Operator, any obligations to any Advertising Cooperative of which you are a member or to any vendor of Noodles & Company related Proprietary and Non-Proprietary Products, construction suppliers, or providers of services, and does not cure such failure as soon as possible. These stipulations highlight the importance of financial transparency and adherence to contractual obligations for Noodles & Company franchisees.