What is the relationship between the Rider and the Renewal Franchise Agreement for the Noodles & Company franchise?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- Background. This Rider to Franchise Agreement for Renewal Franchise (the "Rider") is entered into by and between NOODLES & COMPANY ("Franchisor") and ("Franchisee"). This Rider will be deemed effective as of (the "Effective Date").
Simultaneously with signing this Rider, Franchisor and Franchisee are signing a Franchise Agreement (the "Renewal Franchise Agreement") to govern Franchisee's continued operation of its franchised Noodles & Company® Restaurant located at (the "Restaurant"). (All initial-capitalized terms used but not defined in this Rider will have the meanings given to those terms in the Renewal Franchise Agreement). Franchisor and Franchisee acknowledge that the Renewal Franchise Agreement is the successor to the Franchise Agreement between Franchisor and Franchisee dated as of (the "Expiring Franchise Agreement"), under which Franchisee operated the Restaurant at the Premises during the Expiring Franchise Agreement's term and until the Effective Date. Franchisor and Franchisee are signing this Rider because the Expiring Franchise Agreement is scheduled to expire, and Franchisor and Franchisee have agreed to renew the Restaurant's franchise by signing the Renewal Franchise Agreement. This Rider modifies certain provisions of the Renewal Franchise Agreement that (a) do not apply to Franchisee's operation of the Restaurant during the renewal franchise term or (b) otherwise must account for the fact that the Restaurant already is open and operating as of the Effective Date.
Rider to Control. Except as provided in this Rider, the Renewal Franchise Agreement remains in full force and effect as originally written. If there is any inconsistency between the Renewal Franchise Agreement and this Rider, this Rider's terms will control.
Franchise Fee. Section 6.01 of the Renewal Franchise Agreement is hereby amended to read as follows:
You agree to pay us a nonrefundable franchise renewal fee of $17,500 ("Franchise Renewal Fee"). The Franchise Renewal Fee is payable upon execution of this Agreement. The Franchise Renewal Fee is non-refundable, in whole or in part, under any circumstances.
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the Rider to Franchise Agreement for Renewal Franchise modifies certain provisions of the Renewal Franchise Agreement. The Rider and the Renewal Franchise Agreement are signed simultaneously and govern the continued operation of the franchised Noodles & Company restaurant. The Rider addresses specific aspects that either don't apply during the renewal term or need adjustment because the restaurant is already operational.
The Rider ensures that the Renewal Franchise Agreement accounts for the fact that the restaurant is already open and operating. It modifies specific sections of the Renewal Franchise Agreement, such as those related to successor franchise rights, the expiration of the expiring franchise agreement, certain definitions, the grant of franchise and term, and the continuing operation of the Noodles & Company restaurant. For example, the Rider amends Section 17.01 of the Renewal Franchise Agreement, which pertains to the franchisee's right to renew, including the conditions for renewal and the terms of the new agreement.
Furthermore, the Rider addresses the franchise renewal fee, stating that the franchisee must pay a nonrefundable franchise renewal fee of $17,500 upon execution of the agreement. The Rider also clarifies that the franchisee must present evidence of their right to remain in possession of the premises for the entire renewal term. It also states that the franchisee must comply with the then-current qualifications and training requirements for new franchisees.
In cases of inconsistency between the Renewal Franchise Agreement and the Rider, the terms of the Rider will take precedence. Except for the modifications explicitly outlined in the Rider, the Renewal Franchise Agreement remains in full force and effect as originally written. This ensures that the renewal process accounts for the existing operation while maintaining the integrity of the overall franchise agreement.