What happens if a Noodles & Company franchisee violates a law that materially impacts the agreement?

According to Noodles & Company's 2025 Franchise Disclosure Document, if a franchisee violates any law that materially impacts the Franchise Agreement or the franchise itself, it can be considered a breach of the agreement.

Noodles & Company emphasizes the importance of compliance with all applicable laws, ordinances, and regulations. Franchisees must maintain all required licenses, permits, and certificates necessary for operating their Noodles & Company restaurant. They are also obligated to notify Noodles & Company immediately in writing upon the commencement of any legal or administrative action or the issuance of any order from a court or governmental agency that could adversely affect the restaurant's development, operation, or financial condition. This includes notifying Noodles & Company of any notice of violation or alleged violation of any law, ordinance, or regulation, including those related to health, sanitation, or liquor license violations.

Failure to comply with these legal and regulatory requirements can lead to termination of the Franchise Agreement. Noodles & Company retains the right to terminate the agreement if a franchisee violates a law that materially impacts the agreement or the franchise. This underscores the critical need for franchisees to stay informed about and adhere to all relevant laws and regulations to avoid potential legal issues and maintain a good standing with the franchisor.