What was the outcome of the litigation against Noodles & Company after the settlement?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
ing Act), penalties, and attorneys' fees and costs.
This litigation was settled in August 2018. In the settlement, Noodles & Company paid $450,000 to the State of Delaware and $150,000 to William French, the relator in the action; the action was dismissed, and the parties exchanged mutual releases. Noodles & Company did not admit liability or wrongdoing in the settlement.
Other than this action, no
Source: Item 3 — LITIGATION (FDD page 16)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, a litigation case, The State of Delaware, William French v. Card Compliant, LLC, et. al., in which Noodles & Company was named as a defendant, was settled in August 2018. The original complaint, unsealed on March 24, 2014, alleged violations of the Delaware Abandoned Property Law and the Delaware False Claims and Reporting Act related to unclaimed gift card funds. The complaint sought an order for Noodles & Company to cease these violations, along with unspecified monetary damages, penalties, and legal fees.
As a result of the settlement, Noodles & Company paid $450,000 to the State of Delaware and $150,000 to William French, who was the relator in the action. The action was subsequently dismissed, and all parties involved exchanged mutual releases. Importantly, the settlement included a provision that Noodles & Company did not admit any liability or wrongdoing.
This settlement concludes the disclosed litigation against Noodles & Company, as the FDD states that no other litigation is required to be disclosed in Item 3, other than this action. This resolution allows Noodles & Company to move forward without ongoing legal disputes related to this specific case, though it does not preclude future litigation on other matters.