Under what conditions will Noodles & Company offer a franchise agreement to operate a Noodles & Company restaurant?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
3.04 Grant of Franchise. If we accept a proposed site pursuant to Section 3.02, and you demonstrate the requisite financial and management capabilities (if requested by us) pursuant to Section 3.03 and have satisfied all conditions precedent, then we agree to offer you a franchise to operate a Noodles & Company restaurant at the proposed site by delivering to you our then-current form of franchise agreement, together with all standard ancillary documents (including exhibits, riders, collateral assignments of
leases, Principal Owner guarantees and other related documents) that we then customarily use in granting franchises for the operation of Noodles & Company restaurants in the state in which the Noodles & Company restaurant is to be located ("the Franchise Agreement") subject to the following terms and conditions.
- (a) The Franchise Agreement and all ancillary documents must be executed by you and your Owners and returned to us not earlier than five days and not later than 30 days after signing a lease for a Noodles & Company premises or when construction begins, whichever first occurs.
If we do not receive the fully executed Franchise Agreement and payment of the Franchise Fee as required hereunder, we may revoke our offer to grant you a franchise to operate a Noodles & Company restaurant at the proposed site and may revoke our acceptance of the proposed site.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, Noodles & Company will offer a franchise agreement if several conditions are met. First, Noodles & Company must accept the proposed site for the restaurant. Second, the prospective franchisee must demonstrate the necessary financial and management capabilities, if requested by Noodles & Company. Finally, the franchisee must satisfy all conditions precedent outlined in the agreement.
Specifically, Noodles & Company may refuse to grant a franchise if the franchisee fails to demonstrate sufficient financial and management capabilities to properly develop and operate the proposed Noodles & Company restaurant, or if they fail to properly develop and operate their existing Noodles & Company restaurants. Additionally, Noodles & Company may refuse to grant a franchise if the franchisee fails to comply with the franchise agreement, including the Development Schedule, or if they are ineligible to hold or unable to obtain a liquor license for each Noodles & Company restaurant.
If all these conditions are met, Noodles & Company will offer a franchise agreement, including all standard ancillary documents, for operating a Noodles & Company restaurant at the proposed site. The franchisee must then execute the Franchise Agreement and return it to Noodles & Company not earlier than five days and not later than 30 days after signing a lease for a Noodles & Company premises or when construction begins, whichever occurs first. The franchisee must also pay the Franchise Fee as required. Failure to meet these requirements may result in Noodles & Company revoking the offer to grant the franchise.