If interested in purchasing a company-operated Noodles & Company restaurant, what is the first document a potential franchisee must sign?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are interested in purchasing one or more company-operated restaurants that we might make available from time to time, in lieu of the procedure described in the preceding paragraphs, you will first sign a letter of intent regarding the potential purchase. If you wish to review any of our confidential materials in connection with your potential purchase of company-operated Restaurants, you must sign a Confidentiality Agreement. If we agree to sell you one or more company operated restaurants, and you and we agree on the terms of the transaction, you and we will then execute an Asset Purchase Agreement, the general form of which is attached as Exhibit I. At closing, you and we will also execute a Franchise Agreement (as well as applicable addenda thereto that reflect the terms of the Asset Purchase Agreement) for each Restaurant and an ADA pursuant to which you will develop an agreed-upon number of restaurants.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 10–12)
What This Means (2025 FDD)
According to the 2025 Noodles & Company FDD, if a prospective franchisee is interested in purchasing a company-operated restaurant, the first document they must sign is a letter of intent regarding the potential purchase. This letter indicates the franchisee's serious interest in buying the restaurant.
In addition, if the potential franchisee wishes to review any of Noodles & Company's confidential materials related to the potential purchase, they must sign a Confidentiality Agreement. This agreement ensures that sensitive business information remains protected during the evaluation process.
If Noodles & Company agrees to sell the restaurant and both parties agree on the transaction terms, they will then execute an Asset Purchase Agreement. Following this, at the closing of the sale, both parties will also execute a Franchise Agreement and an Area Development Agreement (ADA), which outlines the development of an agreed-upon number of restaurants.