To what extent are the permits and licenses transferable from the seller to the buyer for a Noodles & Company franchise?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- (n) transferee must obtain an assignment of leases from the landlords for all Restaurants being transferred and obtain liquor and other required licenses from all applicable authorities for all Restaurants being transferred;
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company FDD, a prospective transferee must independently secure the necessary permits and licenses to operate a Noodles & Company restaurant. Specifically, the transferee is responsible for obtaining an assignment of leases from landlords and acquiring all required liquor and other licenses from the relevant authorities for each restaurant being transferred.
This requirement means that a buyer cannot simply rely on the seller's existing permits and licenses. Instead, the buyer must go through the application and approval process with landlords and regulatory bodies. This process ensures that the transferee meets all current standards and qualifications for operating a Noodles & Company franchise.
The need for the transferee to obtain all required licenses and permits independently adds a layer of complexity and potential cost to the transfer process. The transferee will need to budget time and resources to handle these administrative tasks. Furthermore, there is a risk that the transferee may not be approved for certain licenses or permits, which could impact their ability to operate the Noodles & Company restaurant. This is a fairly standard practice in franchising, as franchisors want to ensure that anyone operating under their brand meets all legal requirements.