Does Noodles & Company have to provide a bond when seeking injunctive relief?
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 is entitled to seek injunctive relief against a franchisee without having to furnish a bond or other security. This means that if a franchisee violates the franchise agreement, Noodles & Company can ask a court to order the franchisee to stop the violating behavior immediately, without having to put up money that could be used to compensate the franchisee if the injunction was later found to be unjustified.
This clause favors Noodles & Company, as it lowers the bar for them to obtain an injunction. It also places the franchisee at a disadvantage, as they could be subject to an injunction without Noodles & Company having to risk any of its own capital. This could create a significant financial burden for the franchisee if they are forced to halt operations or change business practices while the legal dispute is ongoing.
It is important for a prospective Noodles & Company franchisee to understand this provision and its potential implications. Franchisees should seek legal counsel to fully understand their rights and obligations under the franchise agreement, especially regarding injunctive relief and the waiver of bond requirements. This is a deviation from standard business practices where a bond is often required to protect the enjoined party from potential losses if the injunction is later deemed wrongful.