Can Noodles & Company unilaterally reduce the scope of any covenant in the agreement?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
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- You understand and acknowledge that Noodles & Company shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Agreement, or any portion thereof, without your consent,
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, Noodles & Company has the right to unilaterally reduce the scope of any covenant in the franchise agreement. This means Noodles & Company can change the restrictions or obligations placed on the franchisee without needing the franchisee's consent.
The reduction in scope is effective immediately upon written notice to the franchisee. The franchisee is then obligated to comply with the modified covenant. This clause ensures that Noodles & Company retains flexibility in adjusting the terms of the agreement as needed, potentially in response to changing market conditions or business strategies.
For a prospective franchisee, this clause introduces an element of uncertainty. While the franchisor can only reduce, not expand, the scope of covenants, franchisees need to be aware that their obligations and restrictions could change during the term of the agreement. It is advisable to seek clarification on what specific covenants are most likely to be modified and under what circumstances such modifications might occur.