factual

Under what circumstances is the Addendum to the Noodles & Company Franchise Agreement executed?

Noodles_Company Franchise · 2025 FDD

Answer from 2025 FDD Document

have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.

ADDENDUM TO THE NOODLES & COMPANY FRANCHISE AGREEMENT REQUIRED FOR HAWAII FRANCHISEES

This Addendum to the Noodles & Company Franchise Agreement dated between Noodles & Company and ("Franchisee") is entered into simultaneously with the execution of the Franchise Agreement. 1. The provisions of this Addendum form an integral part of, and are incorporated into the Franchise Agreement. This Addendum is being executed because: (A) the offer or sale of the franchise to Franchisee was made in the State of Hawaii; (B) Franchisee is a resident of the State of Hawaii; and/or (C) your Noodles & Company Restaurant will be located or operated in the State of Hawaii. 2. ACKNOWLEDGEMENTS. The acknowledgements in Sections 1.02 (c), (d) and (e) of the Franchise Agreement are hereby deleted. 3. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Franchise Agreement. 4. The provisions of this Addendum will be effective only to the extent that the jurisdictional requirements of the Hawaii Franchise Registration and Disclosure Law are met independently of this Addendum. 5. Except as expressly modified by this Addendum, the Franchise Agreement remains unmodified and in full force and effect. ATTEST: NOODLES & COMPANY: Print Name: Print Name: Title: Date: ATTEST/WITNESS: Print Name: Print Name: Date:

ADDITIONAL DISCLOSURES REQUIRED BY MARYLAND

ADDITIONAL DISCLOSURES REQUIRED BY THE STATE OF MARYLAND

Item 5, Additional Disclosures. The following statements are added to Item 5:

Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement and the store is opened. In addition, all development fees and initial payments by area developers shall be deferred until the first franchise under the development agreement opens.

Item 17, Additional Disclosures. The following statements are added to Item 17:

The franchise agreements provide for termination upon bankruptcy. These provisions may not be enforceable under federal bankruptcy law.

Any provisions requiring you to sign a general release of claims against Noodles & Company, including upon renewal or transfer, does not release any claim you may have under the Maryland Franchise Registration and Disclosure Law.

Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.

A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.

No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.

ADDENDUM TO THE NOODLES & COMPANY AREA DEVELOPMENT AGREEMENT REQUIRED FOR MARYLAND FRANCHISEES

This Addendum to the Noodles & Company Area Development Agreement dated
between Noodles & Company and
("Area Operator") is entered
into simultaneously with the execution of the Area Development Agreement.
  • 1. The provisions of this Addendum form an integral part of, and are incorporated into the Area Development Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise to Area Operator was made in the State of Maryland; (B) Area Operator is a resident of the State of Maryland; and/or (C) part or all of the Development Area is located in the State of Maryland.
  • 2. The following language is added to the end of Section 2.01:

Despite the payment provisions above, we will defer your payment of the Development Fee until you have commenced operating your first Noodles & Company restaurant. You must pay us the full Development Fee on the date you commence operating that Noodles & Company restaurant.

3. The following sentence is added to the end of Sections 3.02 and 7.02(g):

Any provision requiring you to sign a general release of claims against us does not release any claim you may have under the Maryland Franchise Registration and Disclosure Law.

4. The following sentence is added to the end of Section 10.01:

Notwithstanding the foregoing, you may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.

5. The following sentence is added to the end of Sections 10.05(b) and 11.03:

Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.

6. The following sentence is added to the end of Section 11:

Section 14-226 of the Maryland Franchise Registration and Disclosure Law prohibits a franchisor from requiring a prospective area operator to assent to any release, estoppel, or waiver of liability as a condition of purchasing a franchise. Representations in this Agreement are not intended to, nor will they act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.

7. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Area Development Agreement.

  • 8. The provisions of this Addendum will be effective only to the extent that the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are met independently of this Addendum.
  • 9. Except as expressly modified by this Addendum, the Area Development Agreement remains unmodified and in full force and effect.

Source: Item 22 — CONTRACTS (FDD pages 98–99)

What This Means (2025 FDD)

According to the 2025 Noodles & Company Franchise Disclosure Document, the Addendum to the Noodles & Company Franchise Agreement is executed simultaneously with the Franchise Agreement under specific circumstances related to the franchisee's location or residency. The addendum is required if the offer or sale of the franchise was made in a specific state, if the franchisee is a resident of a specific state, or if the Noodles & Company restaurant will be located or operated in a specific state. These states include Hawaii, Maryland, North Dakota, and Minnesota.

For franchisees in Hawaii, Maryland, and North Dakota, the addendum modifies certain acknowledgments within the original agreement by deleting Sections 1.02 (c), (d), and (e). For North Dakota franchisees, the addendum clarifies that covenants not to compete are generally considered unenforceable in the state and that provisions requiring franchisees to consent to out-of-state jurisdiction or laws are void. The addendum also stipulates that the site of arbitration or mediation must be agreeable to all parties, in accordance with North Dakota Franchise Investment Law.

For Maryland franchisees, the addendum includes additional disclosures required by the state, such as deferring initial fees and payments until Noodles & Company completes its pre-opening obligations and the store opens. It also clarifies that any provision requiring a general release of claims does not release claims under the Maryland Franchise Registration and Disclosure Law. Furthermore, the payment of the franchise fee is deferred until the franchisee commences operating the restaurant.

For franchisees in Minnesota, the addendum modifies Section 7.07(c) regarding Noodles & Company's entitlement to specific performance or an injunction against violations of the agreement. It also adds a provision ensuring that franchisees are not required to assent to releases that would relieve liability under Minnesota Statute §§ 80C.01 - 80C.22. Additionally, Noodles & Company commits to complying with Minnesota Statute § 80C.14, Subdivisions 3, 4, and 5, which mandates specific notice periods for termination and non-renewal of franchise agreements, except in certain cases.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.