What is Noodles & Company entitled to do regarding claims that could adversely impact the brand?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Further, we, and our applicable Affiliate, at our respective sole discretion, are entitled, but not obligated, to prosecute, defend and/or settle any proceeding arising out of any claim made against you, that, in our opinion, could have an adverse impact on the brand, system or other Noodles & Company Company-owned or Area Operator owned Restaurants.
We, and our applicable Affiliate, have no obligation to indemnify or reimburse you for any fees or disbursements of any legal counsel retained by you or to pay any settlement ourselves; however, we shall be entitled to settle and defend the claim.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, Noodles & Company, at its sole discretion, is entitled, but not obligated, to prosecute, defend, and/or settle any proceeding arising out of any claim made against a franchisee that, in Noodles & Company's opinion, could have an adverse impact on the brand, system, or other Noodles & Company-owned or Area Operator-owned restaurants.
However, Noodles & Company has no obligation to indemnify or reimburse the franchisee for any fees or disbursements of any legal counsel retained by the franchisee or to pay any settlement themselves. Noodles & Company is entitled to settle and defend the claim.
This means that if a claim arises against a franchisee that Noodles & Company believes could harm its brand, Noodles & Company can take control of the legal proceedings. However, the franchisee may be responsible for their own legal costs and any settlement amounts, as Noodles & Company is not obligated to cover these expenses. This clause highlights the importance of franchisees maintaining adequate insurance coverage and understanding their potential liabilities.