If Noodles & Company reduces the scope of a covenant, when does the modification become effective?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You understand and acknowledge that Noodles & Company shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Agreement, or any portion thereof, without your consent, effective immediately upon written notice to you. You shall comply forthwith with any covenant as so modified, which shall be fully enforceable notwithstanding the provisions hereof.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, Noodles & Company has the right to reduce the scope of any covenant in the agreement without the franchisee's consent. This modification becomes effective immediately upon written notice to the franchisee.
As a prospective franchisee, this means that Noodles & Company can change the terms of certain restrictions, such as non-compete clauses, at any time during the agreement. The franchisee is obligated to comply with these changes as soon as they receive written notice.
This clause gives Noodles & Company significant flexibility to adjust the agreement terms as they see fit, which could impact the franchisee's operations or competitive activities. Franchisees should be aware of this provision and understand that they must adapt to any changes Noodles & Company makes to the covenants, ensuring they stay compliant with the modified terms.