What sections of the agreement does Noodles & Company state that a violation of would result in irreparable injury?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You and each of your Owners expressly acknowledge the possession of skills and abilities of a general nature and the opportunity to exploit such skills in other ways, so that enforcement of the covenants contained in Sections 5 and 6 will not deprive any of you of your personal goodwill or ability to earn a living.
If any covenant herein which restricts competitive activity is deemed unenforceable by virtue of its scope or in terms of geographical area, type of business activity prohibited and/or length of time, but could be rendered enforceable by reducing any part or all of it, you and we agree that it will be enforced to the fullest extent permissible under applicable law and public policy.
Noodles & Company may obtain, in any court of competent jurisdiction, any injunctive relief, including temporary restraining orders and preliminary injunctions, against conduct or threatened conduct for which no adequate remedy at law may be available or which may cause it irreparable harm.
You and each of your Owners acknowledges 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 Noodles & Company's 2025 Franchise Disclosure Document, violations of specific sections within the franchise agreement can lead to irreparable injury to the company, potentially resulting in legal action. Specifically, the document states that violations of Sections 4, 5, or 6 of the agreement would be considered as causing irreparable harm for which there may be no adequate legal remedy. Additionally, the document specifies that violations of Sections 5, 7, 9, 11, 14, 15, and/or 16, among others, would also be seen as causing irreparable injury to Noodles & Company.
This acknowledgement by the franchisee and their owners allows Noodles & Company to seek injunctive relief, preventing further violations of these sections. Injunctive relief can include temporary restraining orders and preliminary injunctions. The franchisee also consents to the issuance of an injunction prohibiting any conduct in violation of those sections.
These sections likely cover critical aspects of the Noodles & Company franchise system, such as intellectual property, operational standards, and competitive restrictions. For a prospective franchisee, this underscores the importance of fully understanding and adhering to all terms within these sections of the agreement. Failure to comply could lead to immediate legal consequences and potential damage to the Noodles & Company brand and reputation, as perceived by the franchisor.