Is the $35,000 Franchise Fee uniform for all Noodles & Company Area Operators?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
credited against any other fees.
Franchise Agreement.
The Franchise Fee is $35,000 per restaurant. The Franchise Fee is due on the first to occur of: (1) the commencement of construction; (2) execution of the Franchise Agreement; or (3) the date the franchised restaurant is required to be opened under the Area Development Agreement. The $35,000 Development Fee paid for the first Noodles & Company restaurant you are required to develop will be credited against the Franchise Fee due to us under the Franchise Agreement for that restaurant. For each additional Noodles & Company restaurant you are required to develop under the Area Development Agreement, the $10,000 Development Fee for each restaurant will be credited against the Franchise Fee due to us under the Franchise Agreement for that restaurant, leaving a balance of $25,000. These credits will only be applied if the total Development Fee due for all Noodles & Company restaurants you are required to develop under the Area Development Agreement was timely and fully paid. Except for the credits described above, and in the case of a sale of a Company-owned Restaurant, operation in a Non-Traditional Venue or joint venture, if any (see Item 1), the $35,000 Franchise Fee is unif
Source: Item 5 — INITIAL FEES (FDD page 18)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, the $35,000 Franchise Fee is generally uniform for all Area Operators purchasing a franchise, with a few exceptions.
Specifically, the $35,000 Development Fee paid for the first Noodles & Company restaurant that an Area Operator is required to develop will be credited against the Franchise Fee due for that restaurant. For each additional Noodles & Company restaurant the Area Operator is required to develop under the Area Development Agreement, $10,000 of the Development Fee for each restaurant will be credited against the Franchise Fee, leaving a balance of $25,000. These credits are applied only if the total Development Fee due for all Noodles & Company restaurants was paid on time and in full.
These credits and the instance of a sale of a Company-owned Restaurant, operation in a Non-Traditional Venue or joint venture are the only exceptions to the uniform franchise fee. Otherwise, the $35,000 Franchise Fee is the same for all Area Operators.