What representations do franchisees make to Noodles & Company as an inducement to enter the agreement?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.03 Your Representations.
You and your Principal Owners, jointly and severally if applicable, represent and warrant to us as an inducement to our entering into this Agreement that: (a) all statements you have made and all materials you have submitted to us in connection with your application to us are accurate and complete and that you have made no material misrepresentations or material omissions in obtaining the franchise; (b) neither you nor any of your Principal Owners has made any untrue statement of any material fact or has omitted to state any material fact in the written information you have submitted in obtaining the rights granted hereunder; (c) neither you nor any of your Owners has any direct or indirect legal or beneficial interest in any business that may be deemed a Competitive Business, except as you have otherwise completely and accurately disclosed in writing to us in connection with obtaining the rights granted hereunder; and (d) the execution and performance of this Agreement will not violate any other agreement to which you or any of your Owners may be bound.
You recognize that we have executed this Agreement in reliance of all of the statements you and your Owners have made in writing in connection with this Agreement.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company FDD, franchisees and their principal owners make several representations and warranties to induce Noodles & Company to enter into the franchise agreement. These representations are crucial, as Noodles & Company relies on their accuracy when granting the franchise.
First, franchisees must ensure that all statements and materials submitted during the application process are accurate and complete, without any material misrepresentations or omissions. This includes providing truthful information in the Area Development Agreement (ADA) application, personal profiles, and any other written documents. Second, neither the franchisee nor their owners can have any undisclosed direct or indirect interest in a competitive business, unless it has been fully and accurately disclosed to Noodles & Company in writing. A "Competitive Business" is defined as any restaurant that offers similar dishes to Noodles & Company, operates in a fast-casual format, or has revenues primarily from specific types of dishes.
Finally, franchisees must warrant that entering into and performing the franchise agreement will not violate any other agreements to which they or their owners are bound. These representations ensure that the franchisee is not encumbered by conflicting obligations that could hinder their ability to operate the Noodles & Company franchise effectively. Noodles & Company emphasizes that it executes the agreement based on the written statements made by the franchisee and their owners, highlighting the importance of honesty and accuracy in the application process.