For a Noodles & Company franchise, what is the length of each Renewal Term?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
tor acknowledges and agrees that rights in and to Noodles & Company's Marks and the use thereof shall be and remain our property.
- 16.04 Government Filings. In the event Area Operator has registered any of Noodles & Company's Marks or the name Noodles & Company as part of Area Operator's assumed, fictitious or corporate name, Area Operator shall promptly amend such registration to delete Noodles & Company's Marks and any confusingly similar marks or names therefrom.
- 16.05 Post-Term Covenants. Without limiting the generality of Section 16.02, the Post-Term covenants provided in Section 7.03 of this Agreement shall apply up on the expiration or termination of this Agreement.
17. SUCCESSOR FRANCHISE RIGHTS.
17.01 Your Right To Renewal. You will have an option to renew your Franchise Agreement for the Noodles & Company Restaurant you operate at the Premises after the Initial Term for two Renewal Terms of 10 years each, subject to the following conditions:
(i). Not less than 12 months nor more than 18 months before the end of the Initial Term or a subsequent Renewal Term you must have given us written notice of your election to exercise the option. If you do not provide timely written notice of your election to exercise the option, you will be deemed to have waived the option. If you do give timely written notice of your election to exercise the option, but we do not agree that you are entitled to exercise the option, we will so notify you within 60 days of the date your notice is given. If we fail to so notify you within such 60-day period that we do not agree that you are entitled to exercise the option, we will be deemed to have waived our right to object to your election.
(ii). You will be required to enter into our then-current form of Franchise Agreement, which will supersede this Agreement in all respects and which shall provide a 10-year term for each Renewal Term. The terms of that Franchise Agreement may differ from this Agreement in material respects (including differences in Royalty Fees or other amounts payable by you).
(iii). You will be required to enter into our then-current form of IT Support Services Agreement.
(iv). You must pay, in lieu of an initial franchise fee, a renewal fee equal to (a) one-half of our then-current franchise fee, in the case of a 10-year renewal term, or (b) our then-current franchise fee, in the case of a 20-year renewal term pursuant to Section 17.01 (v) below.
(v).
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, franchisees have the option to renew their franchise agreement for two renewal terms after the initial term. Each of these renewal terms is 10 years.
To exercise this renewal option, the franchisee must provide written notice to Noodles & Company not less than 12 months and not more than 18 months before the end of the current term. Failure to provide timely notice results in a waiver of the renewal option. The new Franchise Agreement will have a 10-year term for each renewal term and will supersede the original agreement in all respects. The terms of the new agreement may differ materially from the original, including potential changes in royalty fees or other payable amounts.
Notably, under certain conditions, a Noodles & Company franchisee can elect to extend a renewal term to an aggregate period of up to 20 years instead of 10 years. This is possible if the franchisee presents satisfactory evidence of the right to remain in possession of the premises for the entire 20-year renewal term, and Noodles & Company approves the premises or a relocation site. Similarly, if the franchisee holds a ground lease or fee ownership of the premises, they can elect for a 20-year renewal term (or the length of their ground lease rights, if shorter).