What is the minimum coverage limit required for Cyber Insurance for Noodles & Company franchisees?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
ate limit applies separately to each location. Deductible may not exceed $100,000.
Cyber Insurance with limits of not less than $1,000,000 (or such higher amount as we may require) and with no sub-limits covering Network Security & Privacy Liability, Event Management/Breach Response Costs, Privacy Regulatory Fines and Penalties, PCI-DSS
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–32)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, franchisees are required to maintain cyber insurance with specific minimum coverage limits. The minimum coverage limit for Cyber Insurance is $1,000,000, though Noodles & Company can require a higher amount. This insurance must cover Network Security & Privacy Liability, Event Management/Breach Response Costs, Privacy Regulatory Fines and Penalties, PCI-DSS, Fines and Penalties, Cyber Extortion, Business Interruption and Data Restoration, and cannot have sub-limits.
This requirement ensures that Noodles & Company franchisees are protected against potential financial losses and liabilities resulting from cyber incidents. By setting a minimum coverage limit, Noodles & Company aims to standardize the level of protection across all franchise locations. The specific coverages required—Network Security & Privacy Liability, Event Management/Breach Response Costs, and others—address the most common and costly aspects of cyber threats.
For a prospective Noodles & Company franchisee, this means factoring in the cost of a comprehensive cyber insurance policy when assessing the overall investment. It is important to shop around for the best rates and coverage options that meet Noodles & Company's requirements. Additionally, franchisees should stay informed about evolving cyber threats and work with their insurance provider to update their coverage as needed. Franchisees should also clarify with Noodles & Company what the requirements are for increased coverage limits.
While the FDD specifies the minimum coverage requirements, it does not detail the potential costs of such a policy. Franchisees should obtain quotes from multiple insurance providers to understand the potential financial impact and ensure they are adequately protected against cyber risks. This proactive approach will help franchisees mitigate potential losses and maintain the integrity of the Noodles & Company brand.