In a legal action regarding the Noodles & Company franchise agreement, who is responsible for covering the prevailing party's attorney fees?

According to the 2025 Noodles & Company Franchise Disclosure Document, in any legal action pertaining to the franchise agreement, the prevailing party is entitled to recover reasonable expenses, including attorney fees, from the opposing party. This means that if a Noodles & Company franchisee sues Noodles & Company, or vice versa, the party that wins the lawsuit can recover the attorney's fees and other expenses from the losing party.

This clause encourages both Noodles & Company and its franchisees to act reasonably and responsibly in their dealings with each other, as the risk of having to pay the other party's legal fees can be a significant deterrent to frivolous or poorly-founded legal actions. It also means that a franchisee who believes Noodles & Company has violated the franchise agreement may be more willing to pursue legal action, knowing that they can recover their legal costs if they win.

However, it is important to note that the attorney's fees must be deemed "reasonable" by the court, which means that the prevailing party cannot simply charge excessive or unnecessary fees to the losing party. Furthermore, this clause only applies to legal actions "with respect to the subject matter" of the franchise agreement, so it may not apply to other types of disputes between Noodles & Company and its franchisees.