How will I be notified if Noodles & Company reduces the scope of a covenant?
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 your consent. If Noodles & Company decides to reduce the scope of any covenant, you will be notified in writing. This written notice is effective immediately.
As a franchisee, you are obligated to comply with the modified covenant as soon as you receive the written notice. The modified covenant is fully enforceable, regardless of any other provisions in the agreement. This means that Noodles & Company can make changes to the restrictive covenants that affect your business operations, and you must adhere to those changes promptly.
This clause gives Noodles & Company significant flexibility to adjust the competitive restrictions placed on franchisees. While a reduction in scope might seem beneficial, it's important to understand that Noodles & Company has sole discretion in making these changes. A prospective franchisee should seek clarification on what circumstances might lead Noodles & Company to reduce the scope of a covenant and how this might impact their business. It would be prudent to consult with a legal professional to fully understand the implications of this clause.