Does Noodles & Company have to prove actual damages to obtain injunctive relief for a breach of confidentiality?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree: (a) that any failure to comply with the covenants in this Agreement shall constitute a default hereunder; (b) that a violation of the requirements of this Agreement would result in irreparable injury to Noodles & Company for which no adequate remedy at law may be available; and (c) therefore, Noodles & Company shall be entitled, in addition to any other remedies which it may have hereunder, at law, or in equity, to obtain specific performance of or an injunction against the violation of the requirement of this Agreement, without the necessity of showing actual or threatened damage and without being required to furnish a bond or other security.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, Noodles & Company does not have to show actual damages to obtain injunctive relief for violations of the franchise agreement. The FDD states that any failure to comply with the covenants in the agreement constitutes a default, and that violations would result in irreparable injury to Noodles & Company.
Noodles & Company is entitled to seek specific performance or an injunction against any violation of the agreement. This means that if a franchisee breaches the agreement, particularly concerning confidentiality, Noodles & Company can ask a court to order the franchisee to stop the violating behavior immediately.
A significant advantage for Noodles & Company is that they do not need to demonstrate actual or threatened damage to secure an injunction. Additionally, Noodles & Company is not required to furnish a bond or other security, which is often a requirement in legal proceedings for injunctive relief. This clause streamlines the process for Noodles & Company to protect its interests and confidential information.
This provision highlights the importance of franchisees adhering to the terms of the franchise agreement, especially those related to confidentiality. Failure to comply can lead to immediate legal action, potentially resulting in court orders and other remedies available to Noodles & Company.