How will Noodles & Company notify the franchisee of a reduction in 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 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. Notification of this reduction will be provided to the franchisee through written notice, which becomes effective immediately.
This means that Noodles & Company can unilaterally modify the restrictions placed on franchisees, such as those related to competitive activities or geographic limitations. The franchisee is then obligated to comply with the modified covenant as soon as they receive the written notice.
This clause gives Noodles & Company significant flexibility to adjust the terms of the franchise agreement as they see fit, which could impact the franchisee's business operations and competitive landscape. Franchisees should be aware of this provision and consider its potential implications for their business. It is fairly common for franchisors to retain some flexibility in modifying agreements, but franchisees should carefully evaluate the extent of these rights.