Does Noodles & Company have any restrictions on its right to transfer or assign the franchise contract?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
| h. "Cause" defined – non curable defaults (continued) | Sections 15.02, 15.03 and 15.07 | While a default under or termination of any Area Development Agreement consisting solely of your failure to meet the development schedule thereunder does not impact any then effective franchise agreements, any material default not timely cured under the Franchise Agreement or any other agreement between us; under any agreement with any vendor or supplier of our Products; under any Lease for the leased Premises; under any agreement with any construction suppliers, product supplier or service providers, or any termination, for any cause of the Franchise Agreement or any other agreement between you and us entitles us to terminate the Area Development Agreement. |
|---|---|---|
| i. Your obligations on termination/nonrenewal | Section 16 | Cease operating your Noodles & Company restaurant; cease using all trade secrets, confidential information and Marks, return all materials that belong to us, including the Operations Manual, advertising, menus and other materials that incorporate our trade secrets or confidential information; complete de-identification of the premises; pay all amounts due; continued observance of all confidentiality and non-competition covenants; transfer of all telephone numbers, directory listings, Internet websites, domain name registrations, and email addresses to us, at our option; transfer of all goods and products bearing the Marks to us, at our option; and provide us with written confirmation of your compliance with these obligations within 30 days of termination or expiration. |
| j. Assignment of contract by | Section 20.04 | No restriction on our right to transfer |
| us | or assign. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 63–83)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, Noodles & Company faces no restrictions on its ability to transfer or assign the franchise contract. As stated in Section 20.04, 'No restriction on our right to transfer or assign.'
This means that Noodles & Company has the freedom to transfer the agreement to another party without needing the franchisee's approval or consent. This is a standard clause in most franchise agreements, allowing the franchisor flexibility in business operations, such as in the event of a merger, acquisition, or corporate restructuring.
For a prospective franchisee, this clause implies that the relationship they establish is with Noodles & Company as an entity, which may change over time. While the core obligations of Noodles & Company under the franchise agreement should remain, the franchisee should be aware that the specific individuals or corporate structure they interact with could be subject to change without their direct input.