What constitutes a material breach or default of the Noodles & Company Franchise Agreement regarding construction and opening deadlines?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Construction. You must start construction of your Noodles & Company Restaurant (i) within 60 days after you have leased, subleased or acquired the Premises or (ii) upon receipt of all necessary permits and licenses, provided such permits were promptly requested, whichever is later, unless we mutually agree otherwise. We reserve the right to require that you obtain our acceptance of your choice of general contractor. You must procure all applicable construction insurance in amounts and coverages in accordance with the Noodles & Company Operations Manual. You must obtain lien waivers from your general contractor and all subcontractors who furnish any materials or services in the construction of your Noodles & Company Restaurant. You must complete construction of your Noodles & Company Restaurant within 120 days after the start of construction, unless we agree otherwise. You must open your Noodles & Company Restaurant within 14 days after the date construction is completed and all necessary approvals have been obtained. Time is of the essence in the construction and opening of your Noodles & Company Restaurants and failure to comply with all deadlines relating thereto is a material breach or default of this Agreement. Any extensions of time are subject to our approval, which we may withhold at our discretion.
The requirement to complete construction of your Noodles & Company Restaurant includes obtaining all required construction and occupancy licenses, permits and approvals, all beer and wine licenses (if applicable), developing the Premises (including all outdoor features, patios, and landscaping of the Premises), installing all required fixtures, furnishings, equipment and signs, and doing all other things as may be required pursuant to this Agreement or by practical necessity to have your Noodles &
Company Restaurant ready to open for business. You must notify us 14 days prior to opening, and we may, at our discretion and expense, conduct a pre-opening inspection of the Premises. Your Noodles & Company Restaurant may not be opened for business until we have notified you that your Noodles & Company Restaurant meets our training requirements for opening and as properly staffed and equipped to provide a positive Noodles & Company guest experience.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, franchisees must start construction within 60 days of securing the premises or receiving necessary permits, whichever is later, unless otherwise agreed upon. Noodles & Company retains the right to approve the franchisee's choice of general contractor and requires applicable construction insurance. Franchisees must complete construction within 120 days after construction begins, and open the restaurant within 14 days after construction is completed and all necessary approvals are obtained, unless Noodles & Company agrees otherwise.
Completing construction includes securing all required construction and occupancy licenses, permits, beer and wine licenses (if applicable), developing the premises (including outdoor features), installing all fixtures, furnishings, equipment, and signs, and ensuring the restaurant is ready to open. Franchisees must notify Noodles & Company 14 days before opening, and Noodles & Company may conduct a pre-opening inspection.
Opening the Noodles & Company restaurant for business is contingent upon Noodles & Company notifying the franchisee that the restaurant meets training requirements and is properly staffed and equipped. Failure to comply with construction and opening deadlines constitutes a material breach or default of the Franchise Agreement, emphasizing the importance of adhering to the specified timelines. Any extensions of time are subject to Noodles & Company's approval, which they may withhold at their discretion.