Who guarantees the Noodles & Company buyer's obligations in connection with the Assumed Contracts, and in what form?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Buyer may not assign any of its rights or obligations hereunder, directly or indirectly, including by operation of law, without the prior written consent of Seller, which consent may be withheld in Seller's sole discretion.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the FDD does not specify who guarantees the Noodles & Company buyer's obligations in connection with the Assumed Contracts, nor does it detail the form of such a guarantee.
However, the FDD does address the buyer's ability to assign rights or obligations. Specifically, the document states that the buyer may not assign any of its rights or obligations without the prior written consent of the seller, which may be withheld at the seller's discretion. This indicates that the seller maintains control over who assumes the buyer's responsibilities and obligations under the agreement.
To gain clarity on who guarantees the buyer's obligations and the form of such guarantees, a prospective Noodles & Company franchisee should seek further clarification from the franchisor. This information is crucial for understanding the full scope of responsibilities and potential liabilities when assuming contracts as part of the franchise agreement.