If Noodles & Company reduces the scope of a covenant, how will they notify the franchisee?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.05 Reduction in Scope.
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 within the franchise agreement. If Noodles & Company chooses to reduce the scope of any covenant, they will provide written notice to the franchisee. This change becomes effective immediately once the franchisee receives this notice.
This means that Noodles & Company can modify the restrictions placed on franchisees, such as those related to competitive business activities, without needing the franchisee's prior consent. The franchisee is then obligated to comply with the modified covenant as soon as they receive written notification.
This clause underscores the importance of carefully reviewing the franchise agreement and understanding the potential for unilateral changes by Noodles & Company. While the ability to reduce the scope of a covenant might seem beneficial, it's crucial for a prospective franchisee to consider how such changes could impact their business operations and future plans. It is also important to note that the franchisee is still obligated to comply with the modified covenant.