Under what conditions can the size of the Noodles & Company Development Area be altered?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Continuance of the limited restrictions on our ability to operate and license others to operate Noodles & Company restaurants in the Development Area is not contingent on you achieving a certain sales volume, market penetration or other contingency. The size of your Development Area may not be altered except if we mutually agree to modify the size in writing.
Source: Item 12 — TERRITORY (FDD pages 48–53)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, the size of a Development Area can only be altered if Noodles & Company and the franchisee mutually agree to modify the size in writing. This means that any change to the Development Area requires a formal, written agreement between both parties.
This stipulation protects both Noodles & Company and the franchisee. Noodles & Company cannot unilaterally reduce the Development Area, ensuring the franchisee retains the originally agreed-upon territory. Conversely, the franchisee cannot unilaterally expand the Development Area without Noodles & Company's consent. This mutual agreement clause ensures that both parties are in accord regarding the scope of development responsibilities and opportunities.
Prospective franchisees should carefully consider the initial Development Area outlined in Exhibit A of the Area Development Agreement, as any modifications require mutual consent. This underscores the importance of thorough due diligence and negotiation during the initial agreement phase to ensure the Development Area aligns with the franchisee's growth objectives and capabilities. Franchisees should also be aware that Noodles & Company retains significant rights outside the Development Area, including the right to operate or franchise other Noodles & Company restaurants and sell products through various channels of distribution.