Does the expiration or termination of the Noodles & Company Franchise Agreement automatically terminate any other Franchise Agreements between the franchisee and franchisor?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
9. EFFECT OF TERMINATION AND EXPIRATION.
- 9.01 Continuing Obligations. All obligations under this Agreement, which expressly or by their nature survive the expiration or termination of this Agreement, shall continue in full force and effect until they are satisfied in full or by their nature expire. Expiration or termination of this Agreement does not of itself terminate any Franchise Agreements between us.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, the expiration or termination of one Franchise Agreement does not automatically terminate any other Franchise Agreements in place between the franchisee and Noodles & Company. This means that if a franchisee has multiple Noodles & Company locations under separate agreements, the termination of one agreement does not necessarily affect the others. Each franchise agreement operates independently in this regard.
This provision offers a degree of security for franchisees with multiple locations. If one location faces closure or termination due to performance issues or other reasons, the franchisee can continue operating other locations under their respective agreements. This can help mitigate the financial impact of a single underperforming or problematic franchise.
However, it is important to note that while the agreements are separate, defaults or breaches under one agreement could potentially trigger cross-default provisions in other agreements. Franchisees should carefully review all their franchise agreements with Noodles & Company to understand the full scope of their rights and obligations, especially concerning termination and its potential impact on other agreements.