Regarding punitive or exemplary damages, what obligations of the franchisee to Noodles & Company are NOT waived?

According to Noodles & Company's 2025 Franchise Disclosure Document, franchisees do not waive their obligations regarding the use of Noodles & Company's Marks in Section 5 and the Confidential Information in Section 7.01 with respect to punitive or exemplary damages. This means that if a franchisee violates the terms related to the use of Noodles & Company's trademarks or misuses confidential information, Noodles & Company retains the right to seek punitive or exemplary damages against the franchisee.

This provision protects Noodles & Company's brand and proprietary information. Punitive damages are intended to punish the franchisee for intentional or reckless misconduct, while exemplary damages serve as an example to deter others from similar behavior. By retaining the right to pursue these damages, Noodles & Company emphasizes the importance of franchisees adhering to the brand standards and protecting confidential information.

For a prospective franchisee, this highlights the critical need to fully understand and comply with the terms outlined in Sections 5 and 7.01 of the franchise agreement. Failure to properly use the trademarks or protect confidential information could expose the franchisee to significant financial penalties beyond compensatory damages. This clause underscores the importance of brand consistency and the protection of proprietary information within the Noodles & Company franchise system.