For a Noodles & Company restaurant, where must the franchisee keep all books and records?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
YOUR NOODLES & COMPANY RESTAURANT; AUDITS.
13.01 Inspections. We and our designees have the right at any reasonable time and without prior notice to: (a) inspect your Noodles & Company Restaurant; (b) observe, photograph, audio-tape and/or video tape the operations of your Noodles & Company Restaurant; (c) remove samples of any food and beverage products, materials or supplies for testing and analysis; and (d) interview personnel and customers of your Noodles & Company Restaurant. You agree to cooperate fully with such activities. You shall furnish to us immediately upon receipt by you all inspection reports, citations or warnings received from municipal or other authorities.
13.02 Audits. We have the right at any time during business hours, and on 10 days' prior notice to you, to inspect, copy and audit the books, records, tax returns and documents relating to the development, ownership, lease, occupancy or operation of your Noodles & Company Restaurant. You must cooperate fully with our representatives and independent accountants conducting such audits. If any inspection or audit discloses an understatement of Net Royalty Sales, you must pay us, within seven days after receipt of the audit report, the royalties and any advertising contributions due on the amount of such understatement, plus interest (as provided in Section 6.05) from the
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
Based on the 2025 Noodles & Company Franchise Disclosure Document, while the document discusses the franchisor's right to audit a franchisee's financial records, it does not specify where the franchisee is required to keep these books and records. The FDD states that Noodles & Company has the right to inspect, copy, and audit the books, records, tax returns, and documents relating to the operation of your Noodles & Company Restaurant.
However, the FDD does not explicitly state where these records must be stored or maintained by the franchisee. It only emphasizes the franchisee's responsibility to cooperate fully with Noodles & Company's representatives and independent accountants during audits.
A prospective Noodles & Company franchisee should ask the franchisor directly about the specific requirements for record-keeping locations to ensure full compliance with the franchise agreement. This information is crucial for maintaining a transparent and cooperative relationship with the franchisor and avoiding potential penalties or disputes.