Is there any restriction on Noodles & Company's right to transfer or assign the contract?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
| j. Assignment of contract by us | Section 11.04 | No restriction on our right to transfer or assign. |
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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 their right to transfer or assign the franchise agreement. This means Noodles & Company has the freedom to transfer the agreement to another party without needing the franchisee's approval or meeting specific conditions.
For a prospective franchisee, this clause provides Noodles & Company with significant flexibility in the future. For example, Noodles & Company could sell the entire franchise system to another company, or assign the agreement to a subsidiary or affiliate.
While this clause benefits Noodles & Company, it also carries potential implications for franchisees. A change in ownership or management could impact the way the franchise is operated, potentially affecting the franchisee's business. It is important for a prospective franchisee to consider this possibility and evaluate the long-term stability and reputation of Noodles & Company before investing in a franchise.