Can Noodles & Company unilaterally reduce the scope of any covenant in the franchise agreement?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
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, effective immediately upon written notice to you.
You shall comply forthwith with any covenant as so modified, which shall be fully enforceable notwithstanding the provisions hereof.
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 reduce the scope of any covenant in the franchise agreement without the franchisee's consent. This reduction is effective immediately upon written notice to the franchisee.
This provision grants Noodles & Company significant flexibility to adjust the terms of the agreement as they see fit. While the franchisor can reduce the scope of a covenant, the franchisee must comply with the modified covenant immediately, and the modified covenant is fully enforceable.
This clause could benefit a franchisee if Noodles & Company reduces the scope of a restrictive covenant that was previously burdensome. However, franchisees should be aware that Noodles & Company has the power to unilaterally change these terms, and should consider this when evaluating the franchise opportunity.