Will Noodles & Company unreasonably withhold consent for a lease on an approved site?

According to Noodles & Company's 2025 Franchise Disclosure Document, franchisees cannot enter into a lease for an approved site without the prior written consent of Noodles & Company. However, Noodles & Company states that it will not unreasonably withhold this consent. This provision aims to balance the franchisor's need to protect brand standards and site suitability with the franchisee's autonomy in securing a location.

For a prospective Noodles & Company franchisee, this means that while the final decision on the lease rests with Noodles & Company, they cannot arbitrarily deny consent. If a franchisee believes Noodles & Company is unreasonably withholding consent, they may have grounds to challenge the decision, though the definition of "unreasonable" can be subjective and may require legal interpretation. Franchisees should ensure they document all communications and justifications related to site approval and lease negotiations.

This type of clause is relatively common in franchising, as franchisors want to ensure that the lease terms do not negatively impact the brand or the franchisee's ability to operate successfully. Franchisees should carefully review the lease terms and ensure they align with Noodles & Company's requirements and guidelines to facilitate a smoother approval process. It is advisable to seek legal counsel to understand the implications of this clause and to protect their interests during lease negotiations.