What rights does Noodles & Company retain in addition to seeking injunctive relief for a breach of confidentiality?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You, and each of your Owners, acknowledge that any violation of Sections 4, 5, or 6 hereof would result in irreparable injury for which no adequate remedy at law may be available. If Noodles & Company files a claim to enforce this Agreement and prevails in such proceeding, you agree to reimburse Noodles & Company for all its costs and expenses, including reasonable attorneys' fees.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company FDD, in the event of a breach of confidentiality, Noodles & Company is entitled to seek specific performance in addition to injunctive relief. This means Noodles & Company can compel a franchisee to fulfill their obligations under the franchise agreement, particularly regarding the protection of confidential information. Noodles & Company does not need to demonstrate actual or threatened damage, nor is it required to furnish a bond or other security to obtain such relief.
This provision is significant for prospective franchisees as it highlights the importance Noodles & Company places on protecting its confidential information and trade secrets. It also means that Noodles & Company has multiple legal avenues to pursue if a franchisee violates the confidentiality terms of the agreement. The franchisee acknowledges that any violation of confidentiality would result in irreparable injury for which no adequate remedy at law may be available.
Furthermore, the FDD states that if Noodles & Company files a claim to enforce the agreement and prevails, the franchisee agrees to reimburse Noodles & Company for all its costs and expenses, including reasonable attorneys' fees. This clause could substantially increase the financial burden on a franchisee found to have breached the confidentiality agreement, as they would be responsible for Noodles & Company's legal costs in addition to any other damages or penalties.