Is the franchisee's compliance with the modified covenant from Noodles & Company contingent on their consent?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
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- You understand and acknowledge that Noodles & Company shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Agreement, or any portion thereof, without your consent, effective immediately upon written notice to you. You shall comply forthwith with any covenant as so modified, which shall be full enforceable notwithstanding the provisions hereof.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, Noodles & Company has the right to modify the scope of any covenant in the agreement without the franchisee's consent. Specifically, Noodles & Company can reduce the scope of any covenant effective immediately upon written notice to the franchisee.
This means a franchisee must comply with the modified covenant as soon as they receive written notice from Noodles & Company. The modified covenant is fully enforceable, regardless of the franchisee's consent. This gives Noodles & Company significant flexibility to adjust the restrictions placed on franchisees during the term of the agreement.
This clause is important for prospective franchisees to understand. It means that the non-compete and other restrictive covenants in the franchise agreement can be changed by Noodles & Company during the term, and the franchisee is obligated to comply with those changes. A prospective franchisee should consider this when evaluating the risks and benefits of investing in a Noodles & Company franchise.