What happens if a Noodles & Company franchisee holds a ground lease of the premises?

According to the 2025 Noodles & Company Franchise Disclosure Document, if a franchisee holds a ground lease or fee ownership of the premises, the renewal term they are exercising may be extended to an aggregate period of up to 20 years, or for such shorter period for which the franchisee has ground lease rights, rather than the standard 10 years.

This clause provides a potential benefit to franchisees who own the land or have a long-term ground lease, as it allows for a longer renewal term. This can provide greater security and potentially increase the value of the franchise. Without this clause, the franchisee would only be able to renew for a standard 10-year term.

It is important to note that the extension of the renewal term is at the franchisee's election, meaning they are not obligated to extend the term to 20 years. They can choose to renew for a shorter period if they prefer. Additionally, the extension is limited by the length of the ground lease rights, so if the ground lease is for less than 20 years, the renewal term cannot exceed the length of the lease.