Under what condition can a Noodles & Company franchisee contest their tax liability?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
18.03 Taxes. We will have no liability for any sales, use, service, occupation, exercise, gross receipts, income, property or other taxes, whether levied upon your Noodles & Company Restaurant, your property or upon us, in connection with sales made or business conducted by you (except any taxes we are required by law to collect from you). Payment of all such taxes shall be your responsibility. In the event of a bona fide dispute as to your liability for taxes, you may contest your liability in accordance with applicable law. In no event, however, will you permit a tax sale, seizure, or attachment to occur against your Noodles & Company Restaurant or any of its assets.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, a franchisee may contest their tax liability if there is a bona fide dispute regarding those taxes. This means the dispute must be genuine and in good faith.
Noodles & Company stipulates that while franchisees are responsible for all taxes related to their restaurant's sales and operations, they have the right to challenge tax liabilities through legal channels if a legitimate disagreement arises. This protects the franchisee's right to due process in tax matters.
However, Noodles & Company also sets a firm condition: a franchisee cannot allow a tax sale, seizure, or attachment to occur against their Noodles & Company restaurant or its assets, even while contesting the tax liability. This protects the brand and ensures the restaurant remains operational.