What is the duration of each Sublease for a Noodles & Company franchise, according to the FDD?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that any lease or sublease for the Premises must, in form and substance satisfactory to us, include all of the provisions set forth in the Addendum to Lease Form, as modified from time to time and which is contained in the Operations Manual, shall be for an aggregate term of (at least) 20 years in a combination of initial term and renewals, and shall include any other provisions as we may determine desirable from time to time. You may not execute a lease, sublease or purchase contract or any modification thereof without our approval. Our approval of the lease, sublease or purchase contract does not constitute a warranty or representation of any kind, express or implied, as to its fairness or suitability or as to your ability to comply with its terms and we do not assume any liability or responsibility to you or to any third parties due to such approval. You must deliver a copy to us of the fully signed lease, sublease or purchase contract within five days after its execution. If the lease terminates for any reason prior to expiration of this Agreement, Noodles & Company shall have the option to require you to locate and secure an alternative approved site within three months, or such other time period as we mutually agree, of the termination or Noodles & Company may, at its option, terminate the Agreement as to such Restaurant.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, any lease or sublease for the premises must be for an aggregate term of at least 20 years, combining the initial term and any renewals. This requirement is subject to Noodles & Company's satisfaction regarding the form and substance of the lease or sublease.
Noodles & Company retains the right to approve and modify the terms of any lease, sublease, or purchase contract for the premises. Franchisees must provide a copy of the lease to Noodles & Company for approval before signing. Beginning with the lease for the third restaurant, Noodles & Company may charge a fee for lease review, as detailed in the Operations Manual.
This 20-year minimum term ensures that Noodles & Company franchisees have a stable, long-term location, aligning their interests with the brand's long-term success. However, it also represents a significant commitment for the franchisee, who must be confident in the location's potential and their ability to operate the restaurant successfully for two decades. The franchisee is also responsible for securing the site and negotiating terms acceptable to Noodles & Company.
If a lease terminates for any reason before the agreement expires, Noodles & Company has the option to require the franchisee to find an alternative approved site within three months, or another mutually agreed-upon timeframe. Alternatively, Noodles & Company may choose to terminate the agreement for that restaurant. This clause protects Noodles & Company's interests by ensuring continued operation or allowing them to regain control of the location if necessary.