Does arbitration hinder, delay, or postpone the closing date for Noodles & Company?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
ession of skills and abilities of a general nature and other opportunities for exploiting such skills in other ways, so that enforcement of the covenants contained in this Agreement will not deprive any of you of your personal goodwill or ability to earn a living. If you or any of your Owners fail or refuse to abide by any of the foregoing covenants and we obtain enforcement in a judicial or arbitration proceeding, the obligations under the breached
covenant will continue in effect for a period of time ending two years after the date such person starts compliance with the order enforcing the covenant.
10. DISPUTE RESOLUTION.
10.01 Mediation, Jurisdiction and Venue. Except for claims by either party for payments owed by one party to the other and except for claims requesting injunctive relief, any controversy or claim arising out of or relating to this Agreement or the making, interpretation, or performance hereof, shall first be submitted to mediation. The parties shall agree on a single mediator within 30 days after notice by the complaining party, and if no mediator is mutually agreed upon within such 30 days, then the mediation shall be submitted by the complaining party to the American Arbitration Association's ("AAA's") regional office located closest to our principal place of business. The mediation proceedings shall be conducted in the city where we then have our principal place of business. You agree and acknowledge that Noodles & Company may, through manuals, or otherwise in writing, designate different procedures or rules for any mediation.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
The 2025 Noodles & Company Franchise Disclosure Document states that, with the exception of claims by either party for payments owed or claims requesting injunctive relief, any controversy or claim arising from the franchise agreement shall first be submitted to mediation. If a mediator is not agreed upon within 30 days after notice by the complaining party, the mediation will be submitted to the American Arbitration Association.
The FDD specifies that Noodles & Company may designate different procedures or rules for any mediation through manuals or other written means. This suggests that the mediation process could be subject to change at the discretion of Noodles & Company, potentially impacting the franchisee's ability to resolve disputes efficiently.
Furthermore, the FDD indicates that the obligation to arbitrate any and all disputes survives the termination or expiration of the agreement. This means that even after the franchise relationship ends, both parties are still bound to resolve disputes through arbitration, which could have long-term implications for franchisees. The FDD does not specify whether arbitration would hinder, delay, or postpone the closing date for Noodles & Company.