What is the cure period for defaulting on material obligations related to the lease or agreements with Noodles & Company?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
(j) shall default in any material obligations of any Lease, any agreement between Noodles & Company (or its Affiliate) and Area Operator, any obligations to any Advertising Cooperative of which you are a member or to any vendor of Noodles & Company related Proprietary and Non-Proprietary Products, construction suppliers, or providers of services, and not cure such failure as soon as possible, and in any event within 20 days after receipt of notice, unless no cure is possible, in which case there shall be no cure period;;
15.03 Option to Terminate Without Opportunity to Cure. Area Operator shall be deemed to be in default and Noodles & Company may, at its option, terminate this Agreement and all rights granted hereunder, without affording Area Operator any prior
notice or opportunity to cure the default, effective immediately upon receipt of notice by Area Operator if any of the following events occur:
- (a) Abandonment.
If Area Operator abandons the Restaurant at the Premises.
For purposes of this Agreement, "abandon" shall refer to Area Operator's failure, at any time during the term of this Agreement, to keep the Premises or Restaurant at the Premises open and operating for business for a period of two consecutive days, except as provided in the Operations Manuals.
8.03. Statutory Limitations. Notwithstanding anything to the contrary contained in this Section 8, in the event any valid, applicable law of a competent Governmental Authority having jurisdiction over this Agreement and the parties hereto shall limit Noodles & Company's rights of termination hereunder or shall require longer notice periods than those set forth above, this Agreement shall be deemed amended to conform to the minimum notice periods or restrictions upon termination required by such laws and regulations. Noodles & Company shall not, however, be precluded from contesting the validity, enforceability, or application of such laws or regulations in any action, arbitration, hearing or dispute relating to this Agreement or the termination thereof.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, the standard cure period for defaults on material obligations related to leases or agreements is 20 days after receiving notice. Specifically, if a franchisee defaults on obligations related to any lease, any agreement between Noodles & Company (or its affiliate) and the franchisee, obligations to any advertising cooperative, or to any vendor of Noodles & Company related products, construction suppliers, or service providers, they have 20 days after receiving notice to cure the default. If the default cannot be cured, there is no cure period.
However, this 20-day cure period is not absolute. Noodles & Company can terminate the agreement without any prior notice or opportunity to cure if a franchisee abandons the restaurant premises. Abandonment is defined as failing to keep the premises open and operating for business for two consecutive days, except as provided in the Operations Manuals.
Additionally, if any applicable law requires a longer notice period than what is specified in the franchise agreement, the agreement will be amended to conform to those minimum requirements. This means that a franchisee's rights and obligations regarding cure periods can be affected by both the specific terms of the franchise agreement and any relevant state or federal laws. It is important to note that Noodles & Company retains the right to contest the applicability of any laws or regulations.