What specific coverages must be included in the Cyber Insurance policy for Noodles & Company franchisees?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
ate limit applies separately to each location. Deductible may not exceed $100,000.
Cyber Insurance with limits of not less than $1,000,000 (or such higher amount as we may require) and with no sub-limits covering Network Security & Privacy Liability, Event Management/Breach Response Costs, Privacy Regulatory Fines and Penalties, PCI-DSS
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–32)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, franchisees are required to maintain cyber insurance with specific coverages and limits. The cyber insurance policy must have a limit of not less than $1,000,000, though Noodles & Company can require a higher amount.
The required coverages include Network Security & Privacy Liability, Event Management/Breach Response Costs, Privacy Regulatory Fines and Penalties, PCI-DSS, Fines and Penalties, Cyber Extortion, Business Interruption, and Data Restoration. The policy must not have sub-limits for these specific coverages.
This requirement ensures that Noodles & Company franchisees are protected against various cyber risks, and that funds are available to manage data breaches, regulatory fines, and business interruptions. Franchisees should consult with insurance providers to obtain a policy that meets these requirements and understand the specific terms and conditions of the coverage.