If I purchase a Company-owned Noodles & Company restaurant, what agreements must I sign?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
bit C.
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.
An Area Operator of Noodles & Company will specialize in the sale of noodle dishes, salads, soups, desserts, breads, beverages and other menu items and merchandise related to the Noodles & Company concept as we may authorize in the future. The Noodles & Company restaurants will normally provide in-restaurant and patio seating and delivery and carry-out service. The Noodles & Company restaurants are currently open for lunch and dinner. You must offer for sale all products Noodles & Company designates, unless you obtain our approval not to carry certain items. You may not carry any products that we have not approved.
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 Franchise Disclosure Document, if you are interested in purchasing a company-operated restaurant, you will first sign a letter of intent regarding the potential purchase. If you wish to review any of Noodles & Company's confidential materials in connection with your potential purchase, you must sign a Confidentiality Agreement.
If Noodles & Company agrees to sell you one or more company-operated restaurants, and you and Noodles & Company agree on the terms of the transaction, you will then execute an Asset Purchase Agreement. At closing, you will also execute a Franchise Agreement for each restaurant and an Area Development Agreement (ADA) pursuant to which you will develop an agreed-upon number of restaurants.
The financial and other terms may vary from the standard terms of the Franchise Agreement and ADA, depending on the circumstances of the sale. This is a fairly standard process in franchise acquisitions, as the specific terms of the deal are often negotiated on a case-by-case basis.