Under the Noodles & Company franchise agreement, can the agreement be modified?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
| s. Modification of the agreement | Sections 10.01 and 20.05 | Generally, no modification except by written agreement signed by both parties. However, the Noodles & Company Operations Manual and the System are subject to change by us. We can increase the total aggregate amount of advertising and marketing fund we can require you to pay (currently a maximum of 5.5% of Net Royalty Sales) if 66.0% of the then existing Noodles & Company restaurants vote to approve such an increase. |
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 63–83)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the franchise agreement can generally only be modified through a written agreement signed by both Noodles & Company and the franchisee. This requirement ensures that any changes to the original agreement are documented and agreed upon by both parties, providing clarity and legal protection.
However, there are exceptions to this rule. Noodles & Company has the right to change the Noodles & Company Operations Manual and the System. Additionally, the company can increase the total aggregate amount of the advertising and marketing fund that franchisees are required to pay (currently capped at 5.5% of Net Royalty Sales) if 66.0% of the then-existing Noodles & Company restaurants vote to approve such an increase.
This means that while the core franchise agreement requires mutual written consent for modifications, Noodles & Company retains the flexibility to make changes to operational procedures and marketing fund contributions, provided certain conditions are met. Prospective franchisees should be aware of these provisions, as they could impact the way they operate their Noodles & Company restaurant and the amount they contribute to advertising and marketing efforts.