factual

In the context of a Noodles & Company franchise, what constitutes the 'Commencement of Construction'?

Noodles_Company Franchise · 2025 FDD

Answer from 2025 FDD Document

You agree to execute this Franchise Agreement and pay the Franchise Fee within 30 days of your signing the lease for the Premises, or when Construction is commenced, whichever first occurs.

Source: Item 23 — RECEIPT (FDD pages 99–350)

What This Means (2025 FDD)

The 2025 Noodles & Company Franchise Disclosure Document (FDD) does not explicitly define "Commencement of Construction." However, it is a key milestone that triggers certain obligations for the franchisee, particularly regarding the payment of the franchise fee.

Specifically, the franchise agreement must be executed, and the franchise fee paid within 30 days of signing the lease for the premises or when construction is commenced, whichever occurs first. This implies that 'Commencement of Construction' is an event easily identified, as it has financial implications.

Since the FDD does not define the term, prospective Noodles & Company franchisees should seek clarification from the franchisor regarding what specific activities or events constitute the 'Commencement of Construction.' This will help avoid any ambiguity or disputes related to the timing of franchise fee payments and other contractual obligations. Understanding this term is crucial for managing the financial aspects of opening a Noodles & Company franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.