Does the indemnification obligation for Noodles & Company franchisees continue after the expiration or termination of the Franchise Agreement?

According to Noodles & Company's 2025 Franchise Disclosure Document, the obligation to indemnify Noodles & Company continues even after the Franchise Agreement expires or is terminated. Specifically, the FDD states that Section 18.02, which likely contains the indemnification provisions, remains in full effect even after the agreement ends. This means a franchisee's responsibility to protect Noodles & Company from certain liabilities, losses, or damages continues, even after the franchise is no longer operating.

This is a significant point for prospective Noodles & Company franchisees. It means that even after they cease operating their franchise, they could still be held responsible for issues that arise from their past operations. This could include legal claims, liabilities, or other financial obligations. The franchisee should carefully review Section 18.02 to fully understand the scope of their indemnification obligations and how long those obligations last after the franchise agreement is terminated or expires.

Franchisees should seek legal counsel to understand the full implications of this clause. It is important to determine what types of events or claims the franchisee would be responsible for, and whether there are any limitations on this responsibility. Understanding these obligations is crucial for managing risk and potential future liabilities associated with the Noodles & Company franchise.