If the lease terminates prior to the expiration of the Noodles & Company agreement, what options does Noodles & Company have?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
If the lease terminates for any reason prior to the 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 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, if the restaurant's lease terminates for any reason before the franchise agreement expires, Noodles & Company has specific options. Noodles & Company can require the franchisee to find and secure an alternative approved site within three months of the termination, or within another mutually agreed upon timeframe. Alternatively, Noodles & Company can choose to terminate the franchise agreement for that particular restaurant.
This clause protects Noodles & Company by ensuring continued operation at either the original or a new, approved location. It also gives Noodles & Company the option to end the agreement if a suitable location cannot be found or if they deem it necessary.
For a prospective franchisee, this means that the lease agreement is a critical component of the franchise. Losing the lease could lead to either a forced relocation within a short timeframe or termination of the franchise. Franchisees should carefully consider the terms of their lease and the potential risks associated with lease termination.