According to Noodles & Company, what constitutes 'control' in the definition of 'Affiliate'?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through ownership of voting securities, by contract or otherwise.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the term "control" is defined as having the power to direct or influence the management and policies of a business entity. This control can be exerted directly or indirectly.
This influence can be achieved through various means, including ownership of voting securities, contractual agreements, or other arrangements. Essentially, if an individual or entity has the ability to dictate the direction of another entity's operations, they are considered to have control.
For a prospective Noodles & Company franchisee, this definition is important because it clarifies the scope of "Affiliate." It determines which related entities or individuals might be subject to certain obligations or restrictions outlined in the franchise agreement. Understanding this definition helps franchisees assess potential conflicts of interest or compliance issues related to other business ventures or relationships they or their related parties may have.