What happens to the Expiring Franchise Agreement for the Noodles & Company restaurant on the Effective Date?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
t 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.
-
- Expiration of Expiring Franchise Agreement. The Expiring Franchise Agreement's term is deemed to expire on the day before the Effective Date. Franchisee has no further rights under the Expiring Franchise Agreement on or following the Effective Date.
- 3. Certain Definitions. Section 1.04 of the Renewal Franchise Agreement is hereby amended by deleting "Commencement of Construction" and "Grand Opening Marketing Program" from this Section.
- 4. Grant of Franchise and Term. Section 2.01 of the Renewal Franchise Agreement is hereby amended to read as follows:
Subject to the terms of this Agreement, we grant to you the right, and you assume the obligation, to continue operating Your Noodles & Company Restaurant at the location set forth on the front page of this Agreement (the "Premises") and to use the Marks and System solely in connection therewith, for a term of 10 years starting on the Effective Date (the "Term"). You must conduct the business of your Noodles & Company Restaurant at the Premises for the duration of the Term. You may not conduct
the business of your Noodles & Company Restaurant or use the System at any site other than the Premises, or relocate your Noodles & Company Restaurant, without our consent. For the duration of the Term, you have the obligation to relocate a closed Noodles & Company Restaurant at a mutually acceptable location, unless we determine otherwise at our discretion.
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, the Expiring Franchise Agreement's term ends the day before the Effective Date. After the Effective Date, the franchisee no longer has any rights under the Expiring Franchise Agreement. Simultaneously with signing the Rider to Franchise Agreement for Renewal Franchise, Noodles & Company and the franchisee will sign a Renewal Franchise Agreement to govern the continued operation of the franchised Noodles & Company restaurant.
The Renewal Franchise Agreement is the successor to the Expiring Franchise Agreement, under which the franchisee operated the restaurant until the Effective Date. The Rider modifies certain provisions of the Renewal Franchise Agreement that either do not apply to the franchisee's operation during the renewal term or must account for the fact that the restaurant is already open and operating as of the Effective Date.
This means that a franchisee renewing their agreement with Noodles & Company will transition to a new agreement on the Effective Date, with the old agreement expiring the day before. The new agreement will reflect the fact that the restaurant is already operational, and certain initial obligations may not apply. Franchisees should carefully review the Rider to Franchise Agreement for Renewal Franchise to understand how the Renewal Franchise Agreement differs from the Expiring Franchise Agreement.