How many days does Noodles & Company have to consummate the transaction after exercising its option to purchase the interest?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the option, exercisable by notice delivered to you or your Owners within 60 days from the date of delivery of a complete and accurate copy of such offer to us to purchase such interest for the price and on the terms and conditions contained in such offer, provided that: (a) we may substitute cash for any form of payment proposed in such offer; (b) our credit shall be deemed equal to the credit of any proposed purchaser; and (c) we will have not less than 90 days from the option exercise date to consummate the transaction. We have the right to investigate and analyze the business, assets and liabilities and all other matters we deem necessary or desirable in order to make an informed investment decision with respect to the fairness of the terms of our right of first refusal. We may conduct such investigation and analysis in any manner we deem reasonably appropriate, and you and your Owners must cooperate fully with us in connection therewith.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, if a franchisee or their owners desire to transfer their franchise for legal consideration, they must obtain a bona fide, executed written offer from a responsible and fully disclosed purchaser. This offer must be immediately delivered to Noodles & Company. Noodles & Company then has the option to purchase the franchise interest themselves.
Noodles & Company has 60 days from the date they receive a complete and accurate copy of the offer to notify the franchisee of their intent to purchase the interest. If Noodles & Company decides to exercise this option, they have the right to investigate the business, assets, and liabilities to make an informed decision.
Following the exercise of the option, Noodles & Company has a minimum of 90 days to complete (consummate) the transaction. This allows Noodles & Company time to arrange financing, conduct due diligence, and finalize the purchase agreement. This 90-day period starts from the date Noodles & Company exercises its option to purchase the franchise interest.