Does the Noodles & Company franchise agreement state that failure to comply with the covenants constitutes a default?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree: (a) that any failure to comply with the covenants in this Agreement shall constitute a default hereunder; (b) that a violation of the requirements of this Agreement would result in irreparable injury to Noodles & Company for which no adequate remedy at law may be available; and (c) therefore, Noodles & Company shall be entitled, in addition to any other remedies which it may have hereunder, at law, or in equity, to obtain specific performance of or an injunction against the violation of the requirement of this Agreement, without the necessity of showing actual or threatened damage and without being required to furnish a bond or other security.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, failure to comply with the covenants in the franchise agreement constitutes a default. Specifically, the agreement states that any failure to comply with the covenants results in a default under the agreement.
This means that if a Noodles & Company franchisee violates any of the agreed-upon promises or obligations outlined in the franchise agreement, it will be considered a breach of contract. This can trigger certain consequences, including potential legal action by Noodles & Company.
Noodles & Company emphasizes that such violations could cause irreparable injury for which there may be no adequate remedy at law. Therefore, Noodles & Company is entitled to seek specific performance or an injunction against the violation, without needing to prove actual damage or provide a bond or security. This highlights the importance of franchisees fully understanding and adhering to all covenants within the franchise agreement to avoid potential default and legal repercussions.