What obligations does a Noodles & Company franchisee have regarding the relocation of a closed restaurant during the term?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the terms of this Agreement, we grant to you the right, and you assume the obligation, to continue operating Your Noodles & Company Restaurant at the location set forth on the front page of this Agreement (the "Premises") and to use the Marks and System solely in connection therewith, for a term of 10 years starting on the Effective Date (the "Term"). You must conduct the business of your Noodles & Company Restaurant at the Premises for the duration of the Term. You may not conduct
the business of your Noodles & Company Restaurant or use the System at any site other than the Premises, or relocate your Noodles & Company Restaurant, without our consent. For the duration of the Term, you have the obligation to relocate a closed Noodles & Company Restaurant at a mutually acceptable location, unless we determine otherwise at our discretion. In connection with any catering program approved, implemented or maintained by us, you shall have the right to cater to businesses or other locations within the Protected Area if you follow all procedures and menu requirements, purchase all supplies, products and ingredients through Approved Suppliers and Designated Suppliers, and otherwise follow the Operations Manual as to catering. You may engage with thirdparty food ordering and delivery systems, and ring up and account for ordering, delivery and catering charges not included in the price of products, only in the manner we permit.
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, a franchisee has an obligation to relocate a closed Noodles & Company restaurant during the term of the agreement. The relocation site must be mutually acceptable to both the franchisee and Noodles & Company, unless Noodles & Company determines otherwise at its discretion.
This obligation is in effect for the duration of the 10-year term granted to the franchisee to operate their Noodles & Company restaurant at the specified location. The franchisee is not allowed to operate the Noodles & Company restaurant or use the system at any location other than the approved premises without the consent of Noodles & Company.
This clause ensures that Noodles & Company can maintain its brand presence and operational standards, even if a restaurant location becomes unviable. For a prospective franchisee, this means they need to be prepared to invest further resources into relocating the restaurant if required, although the final decision rests with Noodles & Company.