Under what circumstances will arbitration be used to settle disputes related to the Noodles & Company agreement?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
19.01 Mediation, Jurisdiction and Venue. Except for claims by either party for payments owed by one party to the other and except for claims requesting injunctive relief, any controversy or claim arising out of or relating to this Agreement or the making, interpretation, or performance hereof, shall first be submitted to mediation. The parties shall agree on a single mediator within 30 days after notice by the complaining party, and if no mediator is mutually agreed upon within such 30 days, then the mediation shall be submitted by the complaining party to the American Arbitration Association's ("AAA's") regional office located closest to our principal place of business. The mediation proceedings shall be conducted in the city where we then have our principal place of business. You agree and acknowledge that Noodles & Company may, through manuals, or otherwise in writing, designate different procedures or rules for any mediation.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, disputes will first be submitted to mediation, excluding claims by either party for payments owed or requests for injunctive relief. The parties must agree on a single mediator within 30 days of notice from the complaining party. If no agreement is reached within those 30 days, the complaining party will submit the mediation to the American Arbitration Association's (AAA) regional office closest to Noodles & Company's principal place of business. The mediation proceedings will occur in the city where Noodles & Company has its principal place of business.
Noodles & Company may designate different procedures or rules for any mediation through manuals or other written means. This allows Noodles & Company some flexibility in how mediations are conducted.
Franchisees should be aware that while mediation is the initial step for most disputes, it does not apply to claims for payments owed or requests for injunctive relief. Franchisees should also note Noodles & Company's ability to modify mediation procedures, which could impact the mediation process.