Does Noodles & Company have to re-evaluate a franchisee's eligibility for renewal if the franchisee seeks to satisfy the eligibility requirements?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- (vii).
You must have complied with our then-current qualifications (including financial and operational qualifications) and training requirements for new Franchisees, and you must be eligible for renewal in accordance with our process for evaluating franchisee renewal eligibility as in effect from time to time.
If you are not so eligible, we will so notify you not less than 18 months before the end of an Initial Term or subsequent Renewal Term, which notice will include the reasons you are not so eligible, and you will have an opportunity to seek to satisfy such eligibility (and we will re-evaluate such eligibility) prior to the end of such term.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, if a franchisee is deemed ineligible for renewal, Noodles & Company is obligated to notify the franchisee at least 18 months before the end of the current term. This notification must include the reasons for the ineligibility.
Importantly, the franchisee then has the opportunity to address and rectify the issues causing the ineligibility. If the franchisee takes steps to meet the eligibility requirements, Noodles & Company commits to re-evaluating the franchisee's eligibility before the end of the current term.
This process provides a clear path for franchisees to maintain their franchise rights, assuming they can meet the required qualifications. It also gives Noodles & Company the ability to ensure that its franchisees meet the standards necessary to uphold the brand's reputation and operational effectiveness.