In what year was the litigation involving Noodles & Company settled?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 3 LITIGATION
The State of Delaware, William French v. Card Compliant, LLC, et. al., Case No. N13C-06-289 FSS (Del. Super. Ct., New Castle County)
Noodles & Company was named as one of the defendants in an action initially filed under seal on June 28, 2013 and unsealed on March 24, 2014. The complaint alleged that defendants knowingly violated the Delaware Abandoned Property Law by failing to report and deliver "unclaimed gift card funds" to the State of Delaware, and knowingly made, used or caused to be made or used, false statements and records to conceal, avoid or decrease an obligation to pay or transmit money to Delaware in violation of the Delaware False Claims and Reporting Act. The complaint sought an order that defendants cease and desist from violating the Delaware False Claims and Reporting Act, unspecified monetary damages (including treble damages under the False Claims and Reporting Act), penalties, and attorneys' fees and costs.
This litigation was settled in August 2018. In the settlement, Noodles & Company paid $450,000 to the State of Delaware and $150,000 to William French, the relator in the action; the action was dismissed, and the parties exchanged mutual releases. Noodles & Company did not admit liability or wrongdoing in the settlement.
Other than this action, no
Source: Item 3 — LITIGATION (FDD page 16)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, litigation involving Noodles & Company was settled in August 2018. The case, The State of Delaware, William French v. Card Compliant, LLC, et. al., alleged violations of the Delaware Abandoned Property Law and the Delaware False Claims and Reporting Act. Noodles & Company was named as one of the defendants in the action.
As part of the settlement, Noodles & Company paid $450,000 to the State of Delaware and $150,000 to William French, the relator. The action was subsequently dismissed, and both parties exchanged mutual releases. It is important to note that Noodles & Company did not admit any liability or wrongdoing in the settlement.
Prospective franchisees should be aware of this past litigation and settlement. While the FDD states that no other litigation is required to be disclosed, it is prudent for potential franchisees to conduct their own due diligence and seek legal counsel to fully understand the implications of this settlement and any other potential legal risks associated with investing in a Noodles & Company franchise.