What is the deadline for a Noodles & Company franchisee to provide a statement of EBITDA, distributions to Owners, and indebtedness?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to provide within 90 days after the end of each fiscal year a statement certified by one of your executive officers setting forth the amount of your EBITDA and distributions to Owners (if any) for such year and your indebtedness at year end.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, a franchisee must provide a statement certified by one of their executive officers setting forth the amount of their EBITDA and distributions to owners (if any) for such year, as well as their indebtedness at year end. This statement must be provided within 90 days after the end of each fiscal year.
This requirement ensures that Noodles & Company can monitor the franchisee's financial health and compliance with debt restrictions. Specifically, the franchisee's total indebtedness outstanding at any time during any fiscal year cannot exceed 4.0 times their earnings before interest, taxes, depreciation, and amortization (EBITDA) minus any distributions to owners for such fiscal year.
For a prospective Noodles & Company franchisee, this means maintaining accurate financial records and being prepared to report this data annually. Failing to provide this statement on time or accurately could lead to further scrutiny or potential issues with the franchise agreement.