When does the term of the Noodles & Company Development Agreement expire?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
2.01 Term and Development Fee. Unless sooner terminated in accordance with Section 8, the term of this Agreement (the "Term") starts on the date hereof and expires on the earlier of the expiration date set forth in Exhibit A or the date upon which Area Operator opens for operation the cumulative number of Noodles & Company restaurants in the Development Area (as such term is defined in Section 2.02 hereof) set forth in Exhibit A. At the time you sign this Agreement, you must pay us the nonrefundable Development Fee ("Development Fee") set forth in Exhibit A.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, the Development Agreement's term starts on the agreement date and expires on the earlier of two dates: either the expiration date specified in Exhibit A, or the date when the Area Operator opens the cumulative number of Noodles & Company restaurants in the Development Area as also outlined in Exhibit A. The term can end sooner if terminated in accordance with Section 8 of the agreement.
This means that a prospective Noodles & Company franchisee's development rights are tied to a specific timeline and a quota of restaurant openings. Failing to meet the development schedule outlined in Exhibit A could lead to early termination of the agreement, as detailed in Section 8. Therefore, franchisees need to carefully review Exhibit A to understand their development obligations and associated deadlines.
It is important for potential Noodles & Company franchisees to understand that the Development Agreement outlines specific obligations that must be met within a defined timeframe. Missing these deadlines can have significant consequences, including the loss of development rights. Exhibit A of the Franchise Disclosure Document is a critical document that outlines the specific development schedule and should be carefully reviewed.