What prohibited actions must a Noodles & Company franchisee avoid regarding taxes and their restaurant's assets?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
18.03 Taxes. We will have no liability for any sales, use, service, occupation, exercise, gross receipts, income, property or other taxes, whether levied upon your Noodles & Company Restaurant, your property or upon us, in connection with sales made or business conducted by you (except any taxes we are required by law to collect from you). Payment of all such taxes shall be your responsibility. In the event of a bona fide dispute as to your liability for taxes, you may contest your liability in accordance with applicable law. In no event, however, will you permit a tax sale, seizure, or attachment to occur against your Noodles & Company Restaurant or any of its assets.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, a franchisee is responsible for paying all taxes related to their restaurant, property, or business operations, except for taxes that Noodles & Company is legally required to collect from the franchisee. While a franchisee can dispute tax liabilities in accordance with applicable law, they must not allow a tax sale, seizure, or attachment to occur against their Noodles & Company restaurant or any of its assets.
This provision protects Noodles & Company from potential disruptions to the brand and operations that could arise if a franchisee's restaurant were seized or its assets attached due to unpaid taxes. It ensures that the franchisee bears the full responsibility for their tax obligations and prevents tax-related issues from negatively impacting the Noodles & Company system.
For a prospective Noodles & Company franchisee, this means maintaining diligent tax compliance and ensuring sufficient financial resources to meet all tax obligations. Failure to do so could result in a breach of the franchise agreement and potential loss of the franchise. Franchisees should consult with tax professionals to understand their tax responsibilities and implement sound financial management practices.