Is Noodles & Company obligated to defend a franchisee against claims that could adversely impact the brand?

According to the 2025 Noodles & Company Franchise Disclosure Document, Noodles & Company is not obligated to defend a franchisee against claims that could adversely impact the brand, system, or other Noodles & Company-owned or Area Operator-owned Restaurants. However, Noodles & Company, at its sole discretion, is entitled to defend and/or settle any proceeding arising out of any claim made against a franchisee that, in Noodles & Company's opinion, could have an adverse impact on the brand.

Noodles & Company is not obligated to indemnify or reimburse a franchisee for any fees or disbursements of any legal counsel retained by the franchisee or to pay any settlement themselves. However, Noodles & Company is entitled to settle and defend the claim.

This means that while Noodles & Company has the right to step in and defend a franchisee in situations that could harm the brand, they are not required to do so. The franchisee may be responsible for their own legal costs in such cases, unless Noodles & Company decides to assume the defense. This clause highlights the importance of a franchisee maintaining adequate insurance coverage and understanding their responsibilities in managing potential legal claims.