Under what condition can a Noodles & Company franchisee change the form of their entity?

According to Noodles & Company's 2025 Franchise Disclosure Document, a franchisee may not change the form of their entity unless Noodles & Company mutually agrees in writing that such a change is warranted. This means that a franchisee cannot unilaterally decide to change their business structure (e.g., from an LLC to a corporation) without the express written consent of Noodles & Company.

This requirement is in place to ensure that Noodles & Company maintains control over the structure and management of its franchisees' businesses. The company needs to be satisfied that the proposed change is justified and will not negatively impact the operation or financial stability of the franchise. This provision is typical in franchising, as franchisors want to ensure consistency and protect their brand standards.

For a prospective Noodles & Company franchisee, this means that they should carefully consider their initial business structure and consult with legal and financial advisors to determine the most appropriate entity form for their long-term business goals. If a change becomes necessary, the franchisee must be prepared to present a compelling case to Noodles & Company and obtain their written approval, which is not guaranteed. This could potentially limit the franchisee's flexibility in adapting their business structure to changing circumstances.