When must a Noodles & Company franchisee provide written notice of their election to exercise the renewal option?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i).
Not less than 12 months nor more than 18 months before the end of the 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.
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, a franchisee must provide written notice of their intent to renew their franchise agreement not less than 12 months, but also not more than 18 months, before the end of the current term. If the franchisee fails to provide this notice within the specified timeframe, they will be considered to have waived their renewal option.
If the franchisee does provide timely notice, Noodles & Company has 60 days from the date the notice was given to notify the franchisee if they do not agree that the franchisee is entitled to exercise the renewal option. Should Noodles & Company fail to notify the franchisee within this 60-day period, they will be considered to have waived their right to object to the franchisee's election to renew.
This requirement ensures that both the franchisee and Noodles & Company have adequate time to prepare for the renewal process or the transition to a new franchisee. It is important for prospective franchisees to understand these deadlines and the associated consequences of missing them, as failing to provide timely notice can result in the loss of the opportunity to continue operating the franchise.