Under what condition does Noodles & Company have the right to suspend the provision of Services to the franchisee?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
12. Termination.
- 1.a Termination by Company. Company has the right, upon written notice to Franchisee, to suspend and/or terminate this Agreement if: (a) Franchisee fails to pay Company any amount due to Company under this Agreement; (b) Franchisee materially breaches any term or condition this Agreement, including, without limitation, any exhibits, schedules or addenda attached to this Agreement, provided such breach is not cured by Franchisee within 30 calendar days following Company's notice to Franchisee of such breach; (c) this Agreement becomes commercially unreasonable for Company for any reason as determined by Company; (d) Company elects to discontinue the provision of Services; however, such termination becomes effective only at the end of a Contract Year; or (e) Franchisee (i) terminates or suspends its business activities; (ii) becomes insolvent, makes an assignment for the benefit of creditors, or becomes subject to direct control of a trustee, receiver or similar authority; or (iii) becomes subject to any bankruptcy or insolvency proceeding under federal or state statutes.
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, Noodles & Company has the right to suspend the IT Support Services Agreement with a franchisee under specific conditions. These conditions include if the franchisee fails to pay any amount due to Noodles & Company under the IT Support Services Agreement. Additionally, Noodles & Company can suspend the agreement if the franchisee materially breaches any term or condition of the agreement, including any exhibits, schedules, or addenda attached to it, provided the breach is not cured within 30 calendar days after Noodles & Company provides notice of the breach.
Noodles & Company can also suspend the agreement if it becomes commercially unreasonable for Noodles & Company to continue providing services, as determined by Noodles & Company. Furthermore, Noodles & Company can elect to discontinue the provision of services, although such termination would only become effective at the end of a contract year. Lastly, if the franchisee terminates or suspends its business activities, becomes insolvent, makes an assignment for the benefit of creditors, becomes subject to direct control of a trustee, receiver, or similar authority, or becomes subject to any bankruptcy or insolvency proceeding under federal or state statutes, Noodles & Company has the right to suspend the IT Support Services Agreement.
These stipulations are important for a prospective Noodles & Company franchisee to consider, as they outline the circumstances under which the IT support they receive from Noodles & Company could be interrupted. Understanding these conditions allows the franchisee to be aware of their obligations and the potential consequences of failing to meet them. It is also important to note that the franchisee also has the right to terminate the agreement if Noodles & Company is in material breach of the agreement, provided the breach is not cured within 30 calendar days following the franchisee's written notice.