Can the transferee of a Noodles & Company franchise be required to execute the then-current Franchise Agreement?

According to Noodles & Company's 2025 Franchise Disclosure Document, a transferee may be required to execute the then-current Franchise Agreement. Specifically, as a condition of the transfer, the transferee must agree to be bound by all the provisions of the existing agreement for the remainder of its term, or, at Noodles & Company's option, execute the then-current Franchise Agreement, IT Support Services Agreement, and related documents. These documents will be those used in the state where the Noodles & Company Restaurant is located at the time of transfer.

This new agreement may include different terms than the original agreement. These differences could include variations in royalties, advertising contributions and expenditures, the duration of the agreement, and other rights and obligations. This means a potential transferee needs to be prepared to operate under potentially different financial and operational terms than the original franchisee.

This requirement is not unusual in franchising, as franchisors often update their agreements to reflect changes in the market, legal requirements, or their own business models. By requiring the transferee to sign the current agreement, Noodles & Company ensures that all franchisees are operating under the same set of rules and standards. A prospective franchisee should carefully review the then-current Franchise Agreement to understand any changes and how they might impact their investment and operations.