Under what general condition does Noodles & Company have the right to terminate the Franchise Agreement for cause?

According to Noodles & Company's 2025 Franchise Disclosure Document, Noodles & Company has the right to terminate the Franchise Agreement for cause if the franchisee is in material breach or material default of the agreement. The FDD specifies that "cause" is defined as a material breach or material default of the agreement. This means that if a franchisee fails to meet a significant obligation or violates a critical term of the agreement, Noodles & Company can terminate the agreement.

Several circumstances are specifically deemed a material breach or default. These include failing to meet performance requirements, not maintaining adequate resources in the designated bank account, or abandoning the restaurant. Other causes for termination without opportunity to cure include abandonment of the restaurant, or assigning or transferring the franchise without prior written consent from Noodles & Company.

Noodles & Company may also terminate the agreement if the franchisee is convicted of a felony or other crime that could adversely affect the system or the goodwill associated with the marks, fails to comply with any provision of the agreement and does not correct such failure within 30 days after written notice, or makes any unauthorized use or disclosure of confidential information. These conditions provide Noodles & Company with broad authority to terminate the agreement if the franchisee's actions are detrimental to the brand or the system. Prospective franchisees should carefully review the franchise agreement to understand all the conditions that could lead to termination.