What constitutes 'control' in the context of a Noodles & Company 'Affiliate' definition?
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' within the definition of 'Affiliate' refers to the power to direct the management and policies of an entity. This power can be exercised directly or indirectly.
Control can be established through various means, including ownership of voting securities. This implies that if an individual or entity owns a significant portion of the voting shares of another entity, they can influence its decisions and are therefore considered to have control.
Control can also be exerted through contractual agreements. This means that even without direct ownership, an entity can control another through the terms and conditions outlined in a contract. Finally, control can be established 'otherwise' which suggests that control can be exerted through other means beyond ownership or contracts. This provides a broad scope for determining what constitutes control, allowing Noodles & Company to consider various factors when assessing affiliations.