Can a Noodles & Company franchisee execute a lease, sublease, or purchase contract without approval from Noodles & Company?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
3.02 Purchase or Lease of Premises. We have the right to approve and modify the terms of any lease, sublease or purchase contract for the Premises, and you agree to deliver a copy to us for our approval before you sign it. Beginning with the Lease for your third Restaurant, we may charge you for our Lease review at the rates listed in our then current Operations Manual. 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. We also require that any lease in which you enter into for the Premises that you or an Affiliate owns, contain terms and conditions and payments that are commercially reasonable in our opinion.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, a franchisee cannot execute a lease, sublease, or purchase contract, or any modifications to these agreements, without prior approval from Noodles & Company. Noodles & Company retains the right to approve and modify the terms of any lease, sublease, or purchase contract for the premises.
Before signing any lease, sublease, or purchase contract, the franchisee must provide a copy to Noodles & Company for their approval. For the third restaurant and beyond, Noodles & Company may charge a fee for reviewing the lease, with the rates specified in the Operations Manual. The lease or sublease must include all provisions outlined in the Addendum to Lease Form, be satisfactory to Noodles & Company in both form and substance, and be for a minimum aggregate term of 20 years, including any renewals.
The approval of the lease, sublease, or purchase contract by Noodles & Company does not constitute a warranty or representation regarding its fairness or suitability, nor does it imply any liability or responsibility to the franchisee or any third parties. The franchisee must provide Noodles & Company with a fully signed copy of the lease, sublease, or purchase contract within five days of execution. If the lease terminates, Noodles & Company has the option to require the franchisee to secure an alternative approved site within three months or terminate the Franchise Agreement for that restaurant. Additionally, if the franchisee or an affiliate owns the premises, the lease terms and payments must be commercially reasonable in Noodles & Company's opinion.