What happens if a Noodles & Company franchisee fails to maintain required insurance coverage?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to opening each Noodles & Company Restaurant, and annually thereafter, you must furnish us with such evidence of insurance coverage and payment of premiums as we require. If you fail or refuse to maintain any required insurance coverage, or to furnish satisfactory evidence thereof, we, at our option and in addition to our other rights and remedies hereunder, may obtain such insurance coverage on your behalf. If we do so, you must fully cooperate with us in our effort to obtain such insurance policies and pay us any costs and premiums we incur.
Your obligation to maintain insurance coverage is not diminished in any manner by reason of any separate insurance we may choose to maintain, nor does it relieve you of your obligations under Section 18.02.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, franchisees must provide evidence of required insurance coverage and premium payments before opening their restaurant and annually thereafter. If a franchisee fails to maintain the required insurance or provide satisfactory evidence of it, Noodles & Company has the option to obtain the insurance coverage on the franchisee's behalf.
In such a case, the franchisee is obligated to fully cooperate with Noodles & Company in obtaining the insurance policies. The franchisee is also responsible for paying all costs and premiums that Noodles & Company incurs while obtaining the insurance.
It is important to note that the franchisee's obligation to maintain insurance coverage is not reduced or eliminated by any separate insurance that Noodles & Company may choose to maintain. Additionally, the franchisee remains responsible for their obligations as outlined in Section 18.02 of the Franchise Agreement.