What is the condition for Noodles & Company to grant franchises according to the agreement?

According to the 2025 Noodles & Company FDD, the company's obligation to grant a franchise agreement for any proposed site is contingent upon certain conditions. Specifically, Noodles & Company will only grant a franchise if the prospective franchisee has met all the conditions precedent outlined in the agreement.

These conditions include demonstrating sufficient financial and management capabilities to properly develop and operate the proposed Noodles & Company restaurant, as well as any existing Noodles & Company restaurants the franchisee or their affiliates own. The franchisee must also have properly developed and operated any existing Noodles & Company restaurants on a continuous basis. Furthermore, the franchisee must have fully complied with the franchise agreement and any other agreements with Noodles & Company, including adhering to the Development Schedule within the specified Development Periods.

Finally, the franchisee must be eligible to hold, and able to obtain, a liquor license for each Noodles & Company restaurant contemplated by the agreement. The absence of any of these failures is a prerequisite for Noodles & Company to grant a franchise agreement. Noodles & Company evaluates financial and management capabilities based on their standards for establishing restaurants in comparable market areas and may require a business plan for any proposed site.