Does Noodles & Company reserve the right to merge with competing businesses?

According to Noodles & Company's 2025 Franchise Disclosure Document, Noodles & Company retains specific rights regarding business operations and potential mergers. Noodles & Company explicitly reserves the right to purchase, be purchased by, or merge or combine with competing businesses, regardless of their location. This provision grants Noodles & Company considerable latitude in shaping its corporate structure and market position, which could involve consolidating with competitors. This action could alter the competitive landscape for franchisees.

For a prospective franchisee, this reservation of rights has several implications. While it provides Noodles & Company with flexibility in responding to market dynamics and growth opportunities, it also introduces uncertainty for franchisees. A merger with a competitor could lead to changes in business strategies, brand positioning, or operational procedures, potentially impacting the franchisee's business. The franchisee should evaluate the potential impact of such changes on their investment and business operations.

It is common for franchisors to reserve rights that allow them to adapt to changing market conditions. However, the extent of these rights can vary. A prospective Noodles & Company franchisee should carefully consider the implications of this specific reservation of rights, assess their comfort level with the potential for significant changes resulting from a merger, and seek clarification from Noodles & Company regarding their long-term strategic vision and how it might affect franchisees.