What other documents must a Noodles & Company franchisee and their Owners/Affiliates execute to protect Noodles & Company's rights during a transfer?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- (l) you and your Owners and Affiliates must execute such other documents and do such other things as we reasonably require to protect our rights under this Agreement, any Franchise Agreements, and any other agreements being transferred;
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, during a transfer of ownership, franchisees, their owners, and affiliates must fulfill certain obligations to protect Noodles & Company's rights. Specifically, they must execute documents and undertake actions that Noodles & Company reasonably requires. This includes compliance with the Franchise Agreement, Area Development Agreement, and any other agreements being transferred.
Additionally, franchisees and their owners must sign a non-competition covenant that prevents them from engaging with any competitive business for two years after the transfer. This covenant restricts them from owning interests in, rendering services to, or advising any competitive business within designated market areas where Noodles & Company restaurants are located. They must also provide a general release of claims against Noodles & Company and its affiliates, which is standard practice in franchising to prevent future legal disputes after a transfer.
These requirements ensure that Noodles & Company maintains control over its brand and market presence, even after a franchise changes hands. The obligation to execute additional documents allows Noodles & Company to address any unforeseen issues or legal requirements that may arise during the transfer process, ensuring a smooth transition and continued protection of their interests. Franchisees should be prepared to comply with these requirements, as failure to do so could impede the transfer process.