What happens to the Noodles & Company agreement if the transactions are abandoned as permitted?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
15.03 Option to Terminate Without Opportunity to Cure. Area Operator shall be deemed to be in default and Noodles & Company may, at its option, terminate this Agreement and all rights granted hereunder, without affording Area Operator any prior
notice or opportunity to cure the default, effective immediately upon receipt of notice by Area Operator if any of the following events occur:
- (a) Abandonment.
If Area Operator abandons the Restaurant at the Premises.
For purposes of this Agreement, "abandon" shall refer to Area Operator's failure, at any time during the term of this Agreement, to keep the Premises or Restaurant at the Premises open and operating for business for a period of two consecutive days, except as provided in the Operations Manuals.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, if an Area Operator abandons the restaurant at the premises, Noodles & Company has the option to terminate the agreement and all rights granted within it. This termination can occur without any prior notice or opportunity for the Area Operator to rectify the situation, and it takes effect immediately upon the Area Operator receiving notice of termination from Noodles & Company.
Abandonment, in this context, is defined as the Area Operator's failure to keep the premises or restaurant open and operating for business for a period of two consecutive days at any point during the term of the agreement. There are exceptions to this rule as provided in the Operations Manuals, which may outline specific circumstances under which a temporary closure is permitted without being considered abandonment.
This clause is a critical point for prospective Noodles & Company franchisees to consider. It highlights the importance of maintaining consistent operation of the restaurant. Failure to do so, even for a short period, can lead to immediate termination of the franchise agreement. Franchisees should familiarize themselves with the Operations Manuals to understand the permissible exceptions and ensure they have contingency plans in place to avoid any unplanned closures that could be construed as abandonment.