Under the Noodles & Company guaranty, is the liability of the undersigned direct and immediate?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned consents and agrees that: (i) his or her direct and immediate liability under this guaranty shall be joint and several; (ii) he or she shall render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses to do so in a timely manner (iii) such liability shall not be contingent or conditioned upon pursuit by Franchisor of any remedies against Franchisee or any other person; and (iv) such liability shall not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence that the Franchisor may from time to time grant to Franchisee or to any other person including, without limitation, the acceptance of any partial payment or performance or the compromise or release of any claims, none of which shall in any way modify or amend this guaranty, which shall be continuing and irrevocable until satisfied in full.
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, the liability of the undersigned under the guaranty is direct and immediate. Each individual signing the guaranty agrees that their liability is both direct and immediate, as well as joint and several. This means that Noodles & Company can seek payment or performance directly from the guarantor without first pursuing the franchisee.
This direct and immediate liability requires the guarantor to fulfill any obligations under the Franchise Agreement if the franchisee fails or refuses to do so promptly. Noodles & Company is not obligated to first pursue any remedies against the franchisee or any other person before demanding payment or performance from the guarantor.
Furthermore, the guarantor's liability will not be affected by any extensions of time, credit, or other allowances that Noodles & Company may grant to the franchisee. This includes accepting partial payments or compromising claims. The guaranty remains in effect until all obligations are fully satisfied, and it is considered continuing and irrevocable.