When does a modification to a covenant by Noodles & Company 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 the 2025 Noodles & Company 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.
The franchisee is then required to comply with the covenant as modified, and this modified covenant is fully enforceable. This means that Noodles & Company can unilaterally change the terms of certain agreements, and the franchisee is legally obligated to follow the new terms as soon as they receive written notice.
This clause gives Noodles & Company significant flexibility in managing the franchise agreement and responding to changing market conditions or business needs. However, it also places a risk on the franchisee, who must be prepared to adapt to changes in the agreement terms on short notice. Prospective franchisees should carefully consider this aspect of the franchise agreement and seek legal counsel to fully understand their rights and obligations.