Does Noodles & Company have the right to approve and modify the terms of any lease extension for the restaurant premises?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Premises is leased, you must extend your current Lease to be, at a minimum, coterminous with the Term of this Agreement.
We have the right to approve and modify the terms of any lease extension, and you agree to deliver a copy to us for our approval before you sign it.
You agree that any lease extension will substantially conform in form and substance to your previous lease for the Premises that we approved.
You may not execute a lease, lease extension, sublease or purchase contract or any modification thereof without our approval.
Our approval of the lease, lease extension, sublease or purchase contract does not constitute a warranty or representation of any kind, express or implied, as to its fairness or suitability or as to your ability to comply with its terms and we do not assume any liability or responsibility to you or to any third parties due to such approval.
You must deliver to us a copy of the fully signed lease, lease extension, sublease or purchase contract within five days after its execution.
If the lease terminates for any reason prior to the expiration of this Agreement, Noodles & Company shall have the option to require you to locate and secure an alternative approved site within three months, or such other time period as we mutually agree, of the termination or Noodles & Company may, at its option, terminate the Agreement as to such Restaurant.
We also require that any lease or lease extension in which you enter into for the Premises that you or an Affiliate owns, contain terms and conditions and payments that are commercially reasonable in our opinion.
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, if a franchisee leases their restaurant premises, they must extend the current lease to match the term of the franchise agreement. Noodles & Company retains the right to approve and modify the terms of any lease extension. The franchisee must provide a copy of the lease extension for approval before signing.
The lease extension should substantially match the form and substance of the previous lease that Noodles & Company approved. The franchisee cannot execute any lease, lease extension, sublease, purchase contract, or modifications without Noodles & Company's approval. However, Noodles & Company's approval does not provide any warranty or representation about the fairness or suitability of the lease, nor does it assume liability to the franchisee or any third parties.
The franchisee must deliver a copy of the fully signed lease, lease extension, sublease, or purchase contract within five days of execution. If the lease terminates for any reason before the agreement expires, Noodles & Company can require the franchisee to secure an alternative approved site within three months or terminate the agreement. Additionally, any lease or lease extension for premises owned by the franchisee or an affiliate must have commercially reasonable terms and conditions in Noodles & Company's opinion.