Does the Noodles & Company franchise agreement allow franchisees to disclaim reliance on statements made by Noodles & Company, franchise sellers, or anyone acting on their behalf?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 63–83)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the franchise agreement does not allow franchisees to disclaim reliance on statements made by Noodles & Company, its franchise sellers, or anyone acting on their behalf. This means that any statements or representations made by Noodles & Company during the franchise sales process can be relied upon by the franchisee, and the franchisee cannot waive their right to claim reliance on those statements.
This provision protects franchisees from being bound by clauses that would prevent them from pursuing legal action based on misrepresentations made during the franchise sales process. It ensures that franchisees can hold Noodles & Company accountable for the accuracy and truthfulness of the information provided to them. This is a significant benefit for prospective franchisees as it provides a legal recourse if they believe they were misled.
This type of clause is included to protect franchisees and align with franchise regulations in many states that aim to prevent franchisors from using overreaching contract terms. The statement explicitly overrides any other conflicting terms in any document executed in connection with the franchise, reinforcing its importance. This protection extends to claims of fraud in the inducement under applicable state franchise law, further safeguarding the franchisee's rights.