If the lease terminates prior to the agreement's expiration, what options does Noodles & Company have?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
If the lease terminates for any reason prior to expiration of this Agreement, Noodles & Company shall have the option to require you to locate and secure an alternative approved site within three months, or such other time period as we mutually agree, of the termination or Noodles & Company may, at its option, terminate the Agreement as to such Restaurant.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company FDD, if the lease terminates for any reason before the agreement expires, Noodles & Company has options regarding the restaurant's location and the franchise agreement itself. Noodles & Company can require the franchisee to find and secure an alternative approved site within three months of the termination, though this timeframe can be adjusted through mutual agreement.
Alternatively, Noodles & Company can choose to terminate the franchise agreement specifically for that restaurant. This decision is at Noodles & Company's discretion, providing them with flexibility based on the circumstances of the lease termination and the potential for relocating the restaurant.
This clause ensures that Noodles & Company maintains control over the location of its franchises and has the ability to either ensure continued operation at a new site or discontinue the franchise if relocation is not feasible or desirable. For a prospective franchisee, this highlights the importance of securing a stable, long-term lease and understanding the potential consequences of early termination.