Did the settlement between Noodles & Company and the other parties include an exchange of mutual releases?

According to the 2025 Noodles & Company Franchise Disclosure Document, franchisees are required to sign a general release at the time of renewal. Specifically, Item 23 outlines that at the time of renewal, the franchisee and their affiliates must sign a general release, in a form prescribed by Noodles & Company, which releases any and all claims, including known and unknown claims, against Noodles & Company, its affiliates, and their respective officers, directors, agents, and employees.

This requirement means that as a condition of renewing their franchise agreement, a franchisee must waive any existing or potential future claims against Noodles & Company. This is a standard practice in franchising, intended to provide the franchisor with legal protection and a clean slate moving forward with the renewed relationship. The release covers a broad range of claims, including those that the franchisee may not even be aware of at the time of signing.

Furthermore, for franchisees operating in California, the FDD includes an acknowledgment of releases under California law, specifically referencing Section 1542 of the California Civil Code. This section states that a general release does not extend to claims that the releasing party does not know or suspect to exist at the time of executing the release, and that if known, would have materially affected the settlement. By signing the release, the franchisee waives their rights and benefits under Section 1542, acknowledging that they may be giving up claims they are unaware of. This highlights the importance of franchisees fully understanding the implications of the release before signing, and potentially seeking legal counsel to assess any potential risks or liabilities.

While the FDD excerpt focuses on the franchisee releasing claims against Noodles & Company, it does not explicitly state whether Noodles & Company provides a reciprocal release of claims against the franchisee. A prospective franchisee should clarify with Noodles & Company whether the release is mutual, meaning that Noodles & Company also releases any claims it may have against the franchisee as part of the renewal process. Understanding the scope and mutuality of the release is crucial for making an informed decision about renewing the franchise agreement.