What is the additional transfer fee for each Noodles & Company restaurant for which a Franchise Agreement has been executed?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
rrent standards for approval;
(c) the proposed transferee may not be, or become, an entity, or be, or become, affiliated with an entity, that is a Publicly Held Entity;
(d) the transferee and its owners must agree to be bound by all of the provisions of our then current Area Development Agreement for the remainder of the Term;
(e) the transferee must acquire, in a concurrent transac
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, when transferring a franchise, the franchisee or the transferee must pay a transfer fee. This fee includes a base amount of $7,500, plus an additional $3,500 for each Noodles & Company restaurant that has an executed Franchise Agreement or is contemplated by the terms of the Area Development Agreement. The franchisee is also responsible for any other transfer fees required by other agreements with Noodles & Company or its affiliates, as well as all costs associated with the transfer.
This means that if a franchisee is selling their Noodles & Company business, they will incur a transfer fee that increases with each restaurant covered by a Franchise Agreement. For example, if a franchisee is transferring an Area Development Agreement that includes three restaurants with executed Franchise Agreements, the transfer fee would be $7,500 + (3 * $3,500), totaling $18,000, plus any other applicable fees and costs.
It is important for prospective Noodles & Company franchisees to understand these transfer costs, as they can significantly impact the financial implications of selling their franchise in the future. Franchisees should carefully review all agreements with Noodles & Company to identify any additional transfer fees that may apply. They should also factor in associated costs, such as legal and administrative expenses, when considering a transfer.