What is included in the Noodles & Company 'Inventory' that is part of the purchased assets?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
As used in this Section 15.08, "Assets" shall mean and include, without limitation, leasehold improvements, equipment, vehicles, furnishings, fixtures, signs and inventory (nonperishable products, materials and supplies) used in the Restaurant, any liquor licenses and any other licenses necessary to operate the Premises, and the real estate fee simple or the lease for the Premises.
We may exclude from the Assets purchased in accordance with this Section any equipment, vehicles, furnishings, fixtures, signs, and inventory that are not approved as meeting then-current standards for a System Restaurant or for which Area Operator cannot deliver a bill of sale in a form satisfactory to us.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, if Noodles & Company exercises its option to purchase assets from an Area Operator upon termination or expiration of the agreement, the assets include 'inventory'. The inventory consists of nonperishable products, materials, and supplies used in the Noodles & Company Restaurant.
This means that when a franchise agreement ends, Noodles & Company has the option to buy back certain assets of the restaurant, including the remaining stock of non-perishable goods. This ensures a smooth transition and continued operation of the restaurant under new management or ownership.
However, Noodles & Company may exclude from the purchased assets any inventory that does not meet the then-current standards for a System Restaurant. This protects Noodles & Company from acquiring substandard or non-approved inventory during the purchase of assets.