Does Noodles & Company require franchisees to select restaurant sites subject to their approval?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You select the site for your Noodles & Company restaurants, subject to our approval. If we do not approve a site you propose, you may select another site, subject to our approval. We will not enter into a Franchise Agreement with you for a restaurant until after we have approved the site. If you enter into an Area Development Agreement with us, you must select sites within your specified Development Area in accordance with the Area Development Agreement and its included schedule. We must approve the location of future units and our then current standards for sites will apply. Failure to do so could result in your violation of your covenants in the Area Development Agreement and termination of the Area Development Agreement. We will provide you with our site selection criteria and/or on-site evaluations of sites as we deem appropriate. Site approval is based on reasonable business judgement, and our criteria may be modified at our discretion.
We may, at our discretion, utilize a model designed for us to predict sales volumes at proposed sites for our Company-owned Restaurants, and may require you to use such model or such other similar service approved by us in our sole discretion. We do not warrant or represent that the model or such similar service is accurate, or that it predicts actual financial results. Any model or forecasting tool we provide is for
informational purposes only and should not be relied upon as a predictor of actual financial performance. In the event we require the use of any such model or service in the future, you may be required to pay the fees associated with such model or service.
Before you acquire, by lease or purchase, any site for a Noodles & Company restaurant, you must submit a complete Site Package to us. We will provide training to you to assist you in completing a typical Site Package for your first restaurant. We will review each Site Package and determine whether to approve the site after considering factors we deem appropriate, including the general location and neighborhood, demographic information, site economics, traffic patterns, access, visibility, location of other restaurants and food establishments, size, configuration, signage and trade dress that is available, appearance and other physical and non-physical characteristics of the site. If we approve the site, we will deliver to you a signed Site Approval Form. We will use reasonable efforts to make a site approval decision within 45 days after we acknowledge receipt of a complete Site Package and any other materials we have requested. However, this timeframe is an estimate and may be subject to delays depending on market conditions or additional due diligence requirements. (Area Development Agreement, Section 3.02; Franchise Agreement, Section 3.01).
Neither our approval of the premises nor any information communicated to you regarding our standard site selection criteria for Noodles & Company restaurants will constitute a warranty or representation of any kind, express or implied, as to the suitability of the site for a Noodles & Company restaurant. Our approval of the proposed site merely signifies that we are willing to grant a franchise for a Noodles & Company restaurant at the site. The decision to enter into a lease or purchase agreement for a site is solely the responsibility of the franchisee. Noodles & Company is not responsible for financial outcomes associated with site selection. Your Noodles & Company restaurant may not be closed or relocated without first obtaining our written consent. (Franchise Agreement, Section 2.01; Area Development Agreement, Section 3.02).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–48)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, franchisees are responsible for selecting the location for their restaurant; however, all sites are subject to Noodles & Company's approval. If Noodles & Company does not approve a site, the franchisee can select another site for consideration. Noodles & Company will not enter into a Franchise Agreement until they have approved the site. For franchisees entering into an Area Development Agreement, site selection must align with the agreement's terms and the included schedule for the specified Development Area. The franchisor's standards for sites at the time will apply, and failure to meet these standards could lead to a violation of the Area Development Agreement and its potential termination.
Noodles & Company provides franchisees with site selection criteria and may conduct on-site evaluations as deemed appropriate. However, Noodles & Company may use a model to predict sales volumes at proposed sites for company-owned restaurants and may require franchisees to use this model or a similar service, with associated fees. The brand does not warrant the accuracy of this model or its ability to predict actual financial results, and it should be used for informational purposes only.
Before acquiring a site, franchisees must submit a complete Site Package to Noodles & Company, who will provide training to assist in preparing this package for the first restaurant. Noodles & Company will review the Site Package, considering factors such as location, demographics, site economics, traffic patterns, access, visibility, the location of other food establishments, size, configuration, signage, and other physical characteristics. If the site is approved, Noodles & Company will issue a signed Site Approval Form, aiming to make a decision within 45 days of receiving the complete Site Package, although this timeframe is subject to delays. The approval of a site does not constitute a warranty of its suitability, and the decision to lease or purchase a site remains the franchisee's responsibility. Furthermore, a Noodles & Company restaurant cannot be closed or relocated without the franchisor's written consent.