Who decides which insurance to procure for a Noodles & Company franchise, as long as minimum requirements are met?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
9.08 Insurance. You must maintain in force such insurance policies as we require from time to time as set forth in the Operations Manual and you shall provide insurance certificates to us within 10 days of executing the Franchise Agreement and annually at least 10 days to expiration of each policy. Such policies shall (a) name us and our Affiliates as additional insureds and loss payees; (b) provide for 30 days' prior written notice to us of any material modification, cancellation, non-renewal or expiration of such policy; and (c) include such other provisions as we may require from time to time.
Prior to opening each Noodles & Company Restaurant, and annually thereafter, you must furnish us with such evidence of insurance coverage and payment of premiums as we require. If you fail or refuse to maintain any required insurance coverage, or to furnish satisfactory evidence thereof, we, at our option and in addition to our other rights and remedies hereunder, may obtain such insurance coverage on your behalf. If we do so, you must fully cooperate with us in our effort to obtain such insurance policies and pay us any costs and premiums we incur.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, franchisees are responsible for securing their own insurance policies, provided they meet the minimum requirements set by Noodles & Company. Specifically, franchisees must maintain the insurance policies outlined in the Operations Manual, and they must supply Noodles & Company with proof of this insurance coverage both when the Franchise Agreement is executed and annually, at least 10 days before each policy's expiration.
Noodles & Company has the right to obtain insurance on behalf of the franchisee if the franchisee fails to maintain the required coverage or provide satisfactory evidence of it. Should Noodles & Company secure insurance in this situation, the franchisee is obligated to cooperate fully and cover all associated costs and premiums.
The insurance policies franchisees obtain must include Noodles & Company and its affiliates as additional insureds and loss payees. These policies must also provide Noodles & Company with 30 days' prior written notice of any material modification, cancellation, non-renewal, or expiration. Additionally, the policies must include any other provisions that Noodles & Company may require from time to time. This ensures that Noodles & Company is protected and informed about the franchisee's insurance coverage.