What happens if a Noodles & Company franchisee is convicted of a felony?

According to the 2025 Noodles & Company Franchise Disclosure Document, if an Area Operator, or any of its officers, directors, or key employees, is convicted of or pleads guilty or nolo contendre to a felony or any other crime or offense that is reasonably likely to adversely affect Noodles & Company's reputation, System, Marks or the goodwill associated therewith, or their interest therein, it can lead to consequences under the franchise agreement.

Specifically, the agreement outlines various conditions under which Noodles & Company may choose to terminate the franchise agreement. One such condition arises if the franchisee is convicted of, or pleads no contest to, a felony or other crime or offense that Noodles & Company reasonably believes may adversely affect the System or the goodwill associated with the Marks. This clause provides Noodles & Company with the right to terminate the agreement if a franchisee's criminal activity could damage the brand's reputation.

It is important to note that Noodles & Company also has the right to terminate the Franchise Agreement if the Area Operator engages in any dishonest or unethical conduct that may adversely affect the reputation of the Restaurant or other Noodles & Company Restaurants or the goodwill associated with the Marks.