What happens if a Noodles & Company franchisee breaches any other agreement with the franchisor?

According to the 2025 Noodles & Company Franchise Disclosure Document, if a franchisee breaches any other agreement with Noodles & Company or its affiliate, and Noodles & Company has the right to terminate that agreement, Noodles & Company has grounds to terminate the franchise agreement as well, whether or not they choose to actually terminate the other agreement. This clause underscores the interconnectedness of all agreements a franchisee has with Noodles & Company.

This provision is significant because it broadens the scope of what constitutes a breach of the franchise agreement. It means that a franchisee's failure to uphold their obligations in a separate agreement, such as a development agreement or a supply agreement, can have repercussions on their core franchise agreement. This could potentially lead to the loss of the franchise if the breach is serious enough to warrant termination under the terms of the other agreement.

For a prospective franchisee, this highlights the importance of carefully reviewing and understanding all agreements they enter into with Noodles & Company. It's not enough to focus solely on the franchise agreement; any related agreements must also be diligently followed to avoid jeopardizing the franchise. Franchisees should seek legal counsel to fully understand their obligations under each agreement and the potential consequences of a breach. This is a common clause in franchise agreements, as franchisors want to ensure that franchisees are compliant with all aspects of the franchise system, not just the operation of the restaurant itself.