What is considered unethical conduct that could adversely affect the reputation of Noodles & Company and lead to termination?

According to Noodles & Company's 2025 Franchise Disclosure Document, engaging in any dishonest or unethical conduct that may adversely affect the reputation of the restaurant, other Noodles & Company restaurants, or the goodwill associated with the brand's trademarks can lead to termination of the franchise agreement. This provision gives Noodles & Company broad discretion to determine what constitutes unethical conduct.

This means that a Noodles & Company franchisee must maintain high ethical standards in all aspects of their business operations. This includes dealings with customers, employees, suppliers, and the general public. Any actions that could be perceived as dishonest or unethical, even if they do not violate specific laws or regulations, could potentially be grounds for termination.

For a prospective franchisee, this highlights the importance of understanding Noodles & Company's expectations regarding ethical conduct. It would be prudent to seek clarification from the franchisor regarding specific examples of conduct that could be considered unethical. Additionally, franchisees should ensure they have robust internal controls and training programs in place to promote ethical behavior among their employees and to prevent any actions that could damage the brand's reputation.

This clause is relatively standard in franchise agreements, as franchisors need to protect their brand and reputation. However, the subjective nature of "unethical conduct" means franchisees must be especially vigilant in maintaining ethical business practices to avoid potential disputes with Noodles & Company.