Does Noodles & Company have to provide a bond when seeking injunctive relief against a franchisee?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You expressly agree that the existence of any claims you may have against Noodles & Company, whether or not arising from this Agreement, shall not constitute a defense to the enforcement by Noodles & Company of the covenants in this Section 6.
- 6.07 Injunctive Relief.
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 not required to furnish a bond or other security when seeking injunctive relief against a franchisee for violations of the franchise agreement. The FDD states that a violation of the franchise agreement would result in irreparable injury to Noodles & Company, and therefore Noodles & Company is entitled to seek specific performance or an injunction. This means that Noodles & Company can pursue legal action to compel a franchisee to comply with the terms of the agreement without having to post a bond.
This provision is significant for prospective franchisees because it outlines the legal recourse available to Noodles & Company in the event of a breach of contract. The franchisee acknowledges that any failure to comply with the covenants in the agreement constitutes a default and would cause irreparable harm to Noodles & Company. This acknowledgement strengthens Noodles & Company's position in seeking injunctive relief.
The waiver of a bond requirement can expedite the process of obtaining an injunction, as Noodles & Company does not need to go through the additional step of securing a bond. This can be advantageous for Noodles & Company in preventing further damage or non-compliance by the franchisee. Franchisees should be aware of this provision and understand the potential legal consequences of violating the franchise agreement. It is fairly common practice in franchising for franchisors to include clauses that allow them to seek injunctive relief without the need for posting a bond.