What agreement must each Principal Owner of a Noodles & Company franchise execute?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Each person who is or becomes a Principal Owner must execute an agreement in the form we prescribe, undertaking to be bound jointly and severally by the terms of this Agreement, the current form of which is attached hereto as Exhibit B. Each person who is or becomes an Owner or an Operating Partner must execute an agreement in the form we prescribe, undertaking to be bound by the confidentiality and non-competition covenants contained in the Agreement, the current form of which is attached hereto as Exhibit D. Each Owner must be an individual acting in his individual capacity, unless we waive this requirement. The initial owners who execute this agreement as of its effective date shall at all times continue to own and have voting authority of at least 51% of the ownership and voting rights under this agreement.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, each person who is or becomes a Principal Owner must execute an agreement. This agreement is in a form prescribed by Noodles & Company, and it commits the Principal Owner to be bound jointly and severally by the terms of the franchise agreement. The current form of this agreement is attached as Exhibit B to the franchise agreement.
In addition, each person who is or becomes an Owner or an Operating Partner must also execute an agreement in a form prescribed by Noodles & Company. This agreement ensures they are bound by the confidentiality and non-competition covenants included in the franchise agreement. The current form of this agreement is attached as Exhibit D.
Noodles & Company also stipulates that the initial owners who execute the agreement as of its effective date must continue to own and have voting authority of at least 51% of the ownership and voting rights under the agreement. This requirement ensures that the original owners maintain control over the franchise's operations and decisions.