factual

What is the deadline for the Noodles & Company Buyer to conduct inspections of the Restaurants and Purchased Assets?

Noodles_Company Franchise · 2025 FDD

Answer from 2025 FDD Document

s of the Restaurants or any other Seller restaurants and Buyer acknowledges that future sales, profits and earnings at the Restaurants may be more or less than past sales, profits and earnings. In making its decision to enter into the Franchise Agreements pursuant to this transaction, Buyer has not relied on any information provided by Seller or any other third party other than what is contained in the FDD.

COVENANTS OF SELLER AND BUYER

Seller and Buyer each covenants with the other as follows:

| Reacquired franchise rights | $ 933 $ 933 | | |---|---|---| | Accumulated amortization | (692) | (627) | | Amortized intangible assets, net | 241 | 306 | | Non-amortized intangible assets: | | | | Trademark rights | 254 | 232 | | Intangibles, net | $ 495 | $ 538 | 1.b Conduct of Business Prior to Closing. From the date of this Agreement through and including the Closing Date, Seller shall use commercially reasonable efforts to operate the Restaurants and maintain the Purchased Assets in the usual and ordinary course and substantially in the same manner as heretofore conducted such that at Closing there will exist an appropriate level and mix of Inventory to allow the Restaurants to be open and run normally, unless otherwise consented to or approved by Buyer in writing. In addition, Seller shall maintain the Fixed Assets through the Closing Date in substantially the same condition as they were at the time of the Inspections (as hereinafter defined), normal wear and tear excepted.

1.c Due Diligence Review.

  • (i) From the Effective Date through and including the Closings or the date of termination of this Agreement, if earlier, Seller will afford to the officers, attorneys, accountants and other representatives of Buyer, subject to the confidentiality provisions set forth in Section 5.4 below, reasonable access during normal business hours to the following books and records of Seller relating to the Restaurants and the Purchased Assets (collectively, "Seller's Documents"): information and records with respect to any contracts, leases, permits, non-privileged litigation files, environmental reports, title reports, surveys, and financial statements, including balance sheets, cash flow statements and income statements as of the last fiscal year end and as of a recent month or period end for the current fiscal year, in each case to the extent contained in Seller's files and related to the Restaurants and the Purchased Assets and reasonably necessary for Buyer to conduct its due diligence;

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

What This Means (2025 FDD)

According to the 2025 Noodles & Company Franchise Disclosure Document, the Buyer has the right to conduct due diligence, including inspections, from the effective date of the agreement through the closing date or the date of termination of the agreement, whichever is earlier. This allows the Buyer a specific window to assess the Restaurants and Purchased Assets.

The Seller is obligated to provide the Buyer's representatives with reasonable access during normal business hours to Seller's Documents. These documents include contracts, leases, permits, non-privileged litigation files, environmental reports, title reports, surveys, and financial statements. This access is subject to confidentiality provisions outlined in Section 5.4 of the agreement.

The Seller must maintain the Fixed Assets in substantially the same condition as they were at the time of the Inspections, with normal wear and tear excepted, through the Closing Date. This ensures that the Buyer receives the assets in an expected condition, based on the earlier inspections. The agreement emphasizes the importance of maintaining an appropriate level and mix of Inventory to allow the Restaurants to operate normally at Closing, unless the Buyer consents otherwise in writing.

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.