What is the seller's obligation regarding utilities for Noodles & Company restaurants?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
If, at any time, the general state of repair, appearance or cleanliness of your Noodles & Company Restaurant or the fixtures, equipment, utensils, furnishings, floor coverings, interior or exterior signage, the building interior or exterior, interior or exterior lighting, landscaping or the parking lot surface does not meet our standards, we may notify you and specify the action you must take to correct such deficiency.
If, within 14 days after receiving such notice, you fail or refuse to initiate in good faith and with due diligence a bona fide program to complete such required maintenance, we have the right (in addition to our rights under Section 15), but not the obligation, to enter the Premises and do such maintenance on your behalf and at your expense.
You must promptly reimburse us for such expenses and the cost of coordinating such repairs.
Failure to maintain your Noodles & Company Restaurant's condition and appearance as required by this Agreement and the Operations Manual is a material breach and a default of this Agreement.
If you are not permitted to make certain repairs because such repairs are reserved to the Landlord as common area maintenance, you shall use diligent efforts to cause the Landlord to make such repairs timely and in a workmanlike manner.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the FDD does not specify any obligations of Noodles & Company regarding utilities for franchised restaurants. The document outlines the franchisee's responsibilities for maintaining the restaurant, including repairs, maintenance, and cleanliness, but it does not mention who is responsible for utility payments or services. The franchisee is responsible for the general upkeep and appearance of the Noodles & Company restaurant.
Item 11 of the FDD describes the franchisee's obligations regarding maintenance and repairs, stating that if the restaurant's condition does not meet Noodles & Company's standards, the company may notify the franchisee and specify the actions needed to correct the deficiency. If the franchisee fails to initiate a program to complete the required maintenance, Noodles & Company has the right, but not the obligation, to enter the premises and perform the maintenance at the franchisee's expense.
Since the FDD does not explicitly state who is responsible for utilities, prospective franchisees should seek clarification from Noodles & Company regarding utility obligations. Understanding whether the franchisee or the franchisor is responsible for setting up and paying for utilities is crucial for budgeting and financial planning. This information is essential for a complete understanding of the financial responsibilities associated with operating a Noodles & Company franchise.