According to the 2025 Noodles & Company Franchise Disclosure Document, Exhibit C to the Area Development Agreement pertains to the Principal Owners' Personal Guaranty of the Area Operator's Obligations. This means that individuals with significant ownership in the entity developing the Noodles & Company restaurants under the Area Development Agreement must personally guarantee the entity's obligations.

This requirement ensures that Noodles & Company has recourse to the personal assets of the principal owners if the Area Operator fails to meet its financial or contractual obligations. The personal guaranty provides an additional layer of security for Noodles & Company, beyond the assets of the Area Operator entity itself. This is a common practice in franchising, particularly when dealing with newly formed entities or those with limited operating history.

Prospective Noodles & Company area developers should carefully review the terms of the personal guaranty and understand the extent of their personal liability. They should also ensure that their personal assets are adequately protected and that they have a clear understanding of the financial obligations of the Area Operator. It is advisable to seek legal and financial counsel to fully understand the implications of signing a personal guaranty.