Does Noodles & Company have the discretion to determine if a closed restaurant needs to be relocated?

According to Noodles & Company's 2025 Franchise Disclosure Document, if a Noodles & Company restaurant closes, the franchisee is obligated to relocate the restaurant to a mutually agreeable location for the remainder of the franchise term, which is 20 years. However, Noodles & Company retains the discretion to determine that relocation is not necessary. This clause ensures that franchisees are generally expected to maintain a Noodles & Company presence, but the franchisor can make exceptions.

This discretion held by Noodles & Company provides flexibility in managing its brand and market presence. For a franchisee, this means that while they are generally responsible for relocating a closed restaurant, Noodles & Company can waive this requirement, potentially saving the franchisee significant costs and effort. However, the franchisee cannot unilaterally decide against relocation.

It is important to note that the relocation site must be mutually acceptable. If a franchisee and Noodles & Company cannot agree on a new location, it could lead to complications. The FDD does not specify the consequences of failing to find a mutually acceptable location, so prospective franchisees should seek clarification on this point during their due diligence. Understanding the conditions under which Noodles & Company might waive the relocation requirement is also crucial for assessing the potential long-term obligations and risks associated with the franchise.