Are Noodles & Company franchisees permitted to bring class action lawsuits against Noodles & Company?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Prohibition Against Class and Collective Actions. You agree that, for our franchise system to function properly, we should not be burdened with the costs of litigating system-wide disputes. Accordingly, any disagreement between you (and your Owners) and us shall be considered unique as to its facts and shall not be brought as a class action, and you (and each of your Owners) waive any right to proceed against us, our Affiliates, or any of our officers, directors, employees, agents, successors and
assigns by way of class action, or by way of a multi-plaintiff, consolidated or collective action. In any legal action between the parties, the court shall not be precluded from making its own independent determination of the issues in question, notwithstanding the similarity of issues in any other legal action involving us and any other Area Operator, and each party waives the right to claim that a prior disposition of the same or similar issues precludes such independent determination.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, franchisees are prohibited from bringing class action lawsuits against the company. The FDD states that any disagreement between a franchisee and Noodles & Company will be considered unique to its facts and cannot be brought as a class action. Franchisees waive their right to proceed against Noodles & Company, its affiliates, officers, directors, employees, agents, successors, and assigns through class action or multi-plaintiff, consolidated, or collective action.
This waiver is designed to prevent Noodles & Company from incurring the costs of system-wide disputes. The document emphasizes that the court is not restricted from making its own independent determination of the issues, even if similar issues arise in other legal actions involving Noodles & Company and other Area Operators. Each party also waives the right to claim that a prior disposition of similar issues precludes such independent determination.
This clause is a fairly standard practice in franchise agreements. It means that each franchisee must pursue any legal claims individually, which can be more expensive and time-consuming than participating in a class action. However, it also means that the franchisee's case will be considered on its own merits, without being influenced by the outcomes of other similar cases. Prospective franchisees should carefully consider this clause and its implications before investing in a Noodles & Company franchise.