Does Noodles & Company reserve the right to sell and franchise its Company-owned Restaurants?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
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We may decide to sell and franchise one or more of our Company-owned Restaurants. In these transactions, we negotiate with the prospective Area Operator to reach mutually acceptable terms of a sale agreement and any lease or sublease of the real estate. If you purchase a Company-owned Restaurant, you must sign a Franchise Agreement and, possibly, also an ADA for the development of Noodles & Company restaurants in the geographical area and defined trade areas where the purchased Noodles & Company restaurant(s) is located. Depending on the circumstances, the financial and other terms may vary from the standard terms of our Franchise Agreement and ADA.
We also may enter into joint venture or partnership arrangements with existing Area Operators or others to develop Noodles & Company restaurants. The parties involved will negotiate the terms of these arrangements.
We also may offer franchises for Noodles & Company restaurants to be located at non-traditional venues ("Non-Traditional Venues"), which include, for example, transportation facilities (airports, train and bus stations, turnpikes or other limited access highway rest stops), military bases, colleges and universities, sports arenas, retail outlets, grocery stores, supermarkets and others. Non-Traditional Venues are defined in the standard form Franchise Agreement, attached as Exhibit C. The terms and conditions of a franchise for a Non-Traditional Venue may vary considerably from the standard terms of our Franchise Agreement and ADA.
We also may offer franchises for Noodles & Company restaurants in foreign countries. This disclosure document does not describe the terms of any international franchise relationship or any other international relationship in which we may become involved, but we may deliver this disclosure document regarding these transactions for general informational purposes.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 10–12)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, Noodles & Company retains the right to sell and franchise its company-owned restaurants. This means that Noodles & Company may choose to sell existing company-operated locations to prospective franchisees.
If Noodles & Company decides to sell a company-owned restaurant, they will negotiate the terms of the sale agreement and any associated lease or sublease with the prospective Area Operator. If a prospective franchisee purchases a company-owned restaurant, they must sign a Franchise Agreement and potentially an Area Development Agreement (ADA) for developing additional Noodles & Company restaurants in the surrounding area. The financial and other terms of these agreements may differ from the standard terms typically offered by Noodles & Company.
Furthermore, if a prospective franchisee is interested in purchasing company-operated restaurants, they will first sign a letter of intent and a Confidentiality Agreement to review confidential materials. If both parties agree to the terms, they will execute an Asset Purchase Agreement, along with a Franchise Agreement and an ADA for developing an agreed-upon number of restaurants. This provides Noodles & Company with flexibility in managing its company-owned operations and expanding its franchise network.