What is the length of the cure period for defaults related to payments owed to Noodles & Company?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
taurants or the goodwill associated with the Marks.
(l) Failure to Complete Training. Failure to timely and successfully complete the training programs described in Section 4.01 to Franchisor's satisfaction.
15.04 Termination With Notice and Opportunity To Cure. Except for any default by Area Operator for which no notice is required as expressly provided elsewhere in this Agreement, Area Operator shall have 30 days, five days in the case of any default in the timely payment of sums due to Noodles & Company or its Affiliate), after written notice of default within which to remedy any default under this Agreement, and to provide evidence of such remedy to Noodles & Company. If any such default is not cured within that time period, or such longer time period as applicable law may require or as we may specify in the notice of default, this Agreement and all rights granted by it shall thereupon automatically terminate without further notice or opportunity to cure. Defaults for which notice under this Section 15.04 shall be given include:
(a) Performance Requirements. If Area Operator fails to maintain or observe any of the standards, policies or procedures we prescribe (i) in this Agreement or any other agreement with Noodles & Company or its Affiliate related to this or any other franchise; (ii) in the Operations Manual; (iii) pursuant to our other policies, whether or not written, which describe Area Operator's duties, obligations, conditions, covenants, or performance requirements; or (iv) in other written documentation, including, without limitation, the requirements and specifications concerning the (a) quality, services, and cleanliness of the Restaurant; (b) the products and services sold or provided at the Restaurant, or the operation of the Restaurant; (c) any other operational and other performance requirements; and (d) the overall quality, service or cleanliness of the Restaurant is determined by us to be unsatisfactory or damaging to the brand or customer experience.
(b) Failure to Adequately Maintain Bank Account. If Area Operator fails to maintain adequate resources in the designated bank account (as described in Section 6.04) to fully and timely satisfy all Sweeps of the account Noodles & Company is permitted to make under this Agreement.
15.05 Notice Required By Law. Notwithstanding anything to the contrary contained in this Section 15, in the event any valid, applicable law of a competent Governmental Authority having jurisdiction over this Agreement and the parties hereto shall limit Noodles & Company's rights of termination hereunder or shall require longer notice periods than those set forth above, this Agreement shall be deemed amended to conform to the minimum notice periods or restrictions upon termination required by such laws and regulations.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company FDD, the standard cure period for defaults is determined by the agreement's terms, applicable law, or as specified by Noodles & Company in a default notice. If a default is not resolved within the given timeframe, the Franchise Agreement can be terminated without further notice.
Specifically, if a Noodles & Company Area Operator fails to maintain sufficient funds in their designated bank account to cover payments that Noodles & Company is permitted to sweep, this constitutes a default. Additionally, any payments not received by Noodles & Company by the due date are considered overdue, and interest will be charged at a rate of 1.5% per month or the maximum rate permitted by law, whichever is less. Failure to pay amounts when due is grounds for termination of the agreement.
However, the FDD also states that in the event of a default by the Area Operator, all costs and expenses arising from the default, including legal fees and hourly charges of administrative employees, must be paid to Noodles & Company within five days of notice.
It's important to note that the cure period may be affected by statutory limitations. If any applicable law requires a longer notice period than what is specified in the agreement, the agreement will be amended to conform to those minimum requirements. Noodles & Company retains the right to contest the validity of such laws.