Why are Noodles & Company and the franchisee signing the Rider?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- Background. This Rider to Franchise Agreement for Renewal Franchise (the "Rider") is entered into by and between NOODLES & COMPANY ("Franchisor") and ("Franchisee"). This Rider will be deemed effective as of (the "Effective Date").
Simultaneously with signing this Rider, Franchisor and Franchisee are signing a Franchise Agreement (the "Renewal Franchise Agreement") to govern Franchisee's continued operation of its franchised Noodles & Company® Restaurant located at (the "Restaurant"). (All initial-capitalized terms used but not defined in this Rider will have the meanings given to those terms in the Renewal Franchise Agreement). Franchisor and Franchisee acknowledge that the Renewal Franchise Agreement is the successor to the Franchise Agreement between Franchisor and Franchisee dated as of (the "Expiring Franchise Agreement"), under which Franchisee operated the Restaurant at the Premises during the Expiring Franchise Agreement's term and until the Effective Date. Franchisor and Franchisee are signing this Rider because the Expiring Franchise Agreement is scheduled to expire, and Franchisor and Franchisee have agreed to renew the Restaurant's franchise by signing the Renewal Franchise Agreement. This Rider modifies certain provisions of the Renewal Franchise Agreement that (a) do not apply to Franchisee's operation of the Restaurant during the renewal franchise term or (b) otherwise must account for the fact that the Restaurant already is open and operating as of the Effective Date.
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, Noodles & Company and the franchisee are signing the Rider to Franchise Agreement for Renewal Franchise because the original franchise agreement is expiring, and both parties have agreed to renew the franchise. The Rider modifies specific parts of the Renewal Franchise Agreement. These modifications address aspects that either don't apply to the continued operation of the restaurant or need to account for the fact that the restaurant is already open and operating.
In simpler terms, since this isn't a brand-new franchise but a renewal, some initial setup terms in the standard agreement don't make sense. The Rider acts as an update, removing or changing those inapplicable sections. This ensures the agreement accurately reflects the current state of the Noodles & Company restaurant and the ongoing relationship between Noodles & Company and the franchisee.
For a prospective franchisee, this means that if you're renewing a Noodles & Company franchise, you'll encounter this Rider. It's important to carefully review it alongside the Renewal Franchise Agreement to understand which terms are being modified and how those changes affect your obligations and rights. This ensures a smooth transition and clear understanding of the renewed franchise terms.