Besides the mentioned case, does Item 3 disclose any other litigation involving Noodles & Company?

According to the 2025 Noodles & Company Franchise Disclosure Document, Item 3 addresses litigation involving the company. Besides the case The State of Delaware, William French v. Card Compliant, LLC, et. al., the document states that no other litigation is required to be disclosed in Item 3.

The Delaware case, which was initially filed under seal on June 28, 2013, and unsealed on March 24, 2014, involved allegations that Noodles & Company violated the Delaware Abandoned Property Law by failing to report and deliver unclaimed gift card funds. The complaint also alleged the use of false statements to conceal obligations to pay money to Delaware, violating the Delaware False Claims and Reporting Act. The State of Delaware sought an order to cease violations, unspecified monetary damages, penalties, and attorneys' fees.

The litigation was settled in August 2018, with Noodles & Company paying $450,000 to the State of Delaware and $150,000 to William French. The action was subsequently dismissed, and both parties exchanged mutual releases. It is important to note that Noodles & Company did not admit any liability or wrongdoing as part of the settlement. For a prospective franchisee, this disclosure provides transparency regarding Noodles & Company's legal history, specifically highlighting a settled case involving allegations of violating the Delaware Abandoned Property Law and the Delaware False Claims and Reporting Act.