Under what circumstances is the Addendum to the Noodles & Company Area Development Agreement executed?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
IONAL DISCLOSURES REQUIRED BY THE STATE OF RHODE ISLAND**
Item 17, Additional Disclosure. The following statement is added to Item 17:
Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that: "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."
ADDENDUM TO THE NOODLES & COMPANY AREA DEVELOPMENT AGREEMENT REQUIRED FOR RHODE ISLAND FRANCHISEES
| ("Area Operator") is entered into simultaneously with the execution of |
|---|
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, an addendum to the Area Development Agreement is executed simultaneously with the Area Development Agreement itself. This addendum is required if (A) the offer or sale of a franchise to the Area Operator was made in a specific state, such as Rhode Island, Minnesota, or Maryland; (B) the Area Operator is a resident of one of these states; and/or (C) part or all of the Development Area is located in one of these states.
The addendum modifies certain provisions of the standard Area Development Agreement to comply with specific state franchise laws. For example, the Rhode Island addendum includes a statement ensuring that the state's Franchise Investment Act takes precedence over any conflicting provisions in the agreement. Similarly, the Minnesota addendum modifies sections related to releases, assignments, and termination notices to align with Minnesota law.
For a prospective Noodles & Company area developer, this means that the terms of their Area Development Agreement may vary depending on the state in which they reside and operate. It is important to carefully review any addenda to understand how state laws may affect their rights and obligations under the agreement. These addenda are designed to protect franchisees and ensure compliance with local regulations, but they can also introduce complexities that require careful consideration.