Can Noodles & Company waive the requirement that each Owner be an individual acting in his individual capacity?

According to Noodles & Company's 2025 Franchise Disclosure Document, each owner must be an individual acting in his individual capacity. However, Noodles & Company can waive this requirement. The initial owners who execute the agreement as of its effective date must continue to own and have voting authority of at least 51% of the ownership and voting rights under the agreement.

Prospective franchisees should note that while a waiver is possible, it is not guaranteed. The decision to grant a waiver rests with Noodles & Company. This clause ensures that the initial owners maintain significant control over the franchise, aligning their interests with the success of the Noodles & Company restaurant.

This requirement and potential waiver are important considerations for anyone looking to invest in a Noodles & Company franchise, especially if they plan to structure their ownership in a non-traditional way. It is advisable to discuss this specific requirement with Noodles & Company during the due diligence process to understand the circumstances under which a waiver might be granted.