Does the Operating Partner for a Noodles & Company franchise need to own equity in the franchisee's business?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You must be a business corporation, partnership, limited liability company or other legal business entity to obtain an ADA or Franchise from us. You are not obligated to participate directly in the development and operation of your Noodles & Company restaurant. However, you must designate as your "Operating Partner" an individual approved by us who must: (1) have completed our Operating Partner training program to our satisfaction; (2) be the senior management individual who is involved in day-to-day operations of your Noodles & Company restaurants; (3) be the person with whom we communicate as to development, operations and Area Operator matters; (4) have the authority to bind you regarding all operational decisions regarding your Noodles & Company restaurant; and (4) continuously have primary residency in the Development Area. Your Operating Partner is not required to own an equity interest in you.
Your Operating Partner: (1) must exert his/her full-time and best efforts to develop and operate the Noodles & Company restaurant being franchised and all other Noodles & Company restaurants you own; and (2) may not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitments or that otherwise may conflict with the obligations under the Franchise Agreement. Your Noodles & Company restaurant must, at all times, be managed by you, your Operating Partner or by a manager who has completed the appropriate training program to our satisfaction. He/she must adhere to our customer service standards as outlined in the Operations Manual.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 60–62)
What This Means (2025 FDD)
According to the 2025 Noodles & Company FDD, the Operating Partner is not required to have an equity stake in the franchise. However, the Operating Partner must be an individual approved by Noodles & Company, complete their training program, and be the senior management individual involved in the daily operations of the Noodles & Company restaurant. This individual also serves as the primary contact for development, operations, and Area Operator matters, and has the authority to make operational decisions for the restaurant. Additionally, the Operating Partner must maintain primary residency in the Development Area.
The Operating Partner is expected to dedicate their full-time efforts to developing and operating the Noodles & Company restaurant and cannot be involved in other conflicting business activities. The restaurant must be managed by the franchisee, the Operating Partner, or a trained manager, ensuring adherence to customer service standards. If a franchisee operates multiple Noodles & Company restaurants, a full-time general manager is required for each location.
This arrangement allows flexibility for franchisees who may not have the expertise or desire to manage the day-to-day operations themselves. By designating an Operating Partner who meets Noodles & Company's criteria, franchisees can ensure that their restaurant is professionally managed while still maintaining overall ownership and control. The requirement for the Operating Partner to be fully dedicated to the Noodles & Company business and reside in the Development Area underscores the importance of active and engaged management for the success of the franchise.