How are the Advertising and Brand Development Funds (ABDF) accounted for at Noodles & Company?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
The ABDF will be accounted for separately from our other funds. While our intent is to balance the ABDF on an annual basis, the ABDF may run at either a surplus or deficit. All disbursements from the ABDF will be made first from income, then from rebates received from suppliers and then from contributions. We may spend, in any fiscal year, an amount greater or less than the aggregate contributions of all Noodles & Company restaurants to the ABDF in that year, and the ABDF may borrow from us or other lenders to cover deficits in the ABDF or cause the ABDF to invest any surplus for future use by the ABDF. We will prepare annually an unaudited statement of monies collected and costs incurred by the ABDF and furnish you a copy upon your request. Except as otherwise expressly provided in the Franchise Agreement, we assume no direct or indirect liability or obligation regarding the maintenance, direction or administration of the ABDF. We do not act as a trustee or in any other fiduciary capacity regarding the ABDF.
We did not collect any ABDF funds in our 2024 fiscal year. We do not plan to use any marketing fees collected from franchisees to market the sale of franchises.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–48)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the Advertising and Brand Development Fund (ABDF) is accounted for separately from Noodles & Company's other funds. While the intent is to balance the ABDF on an annual basis, it may run at a surplus or deficit. Disbursements from the ABDF will be made first from income, then from rebates received from suppliers, and finally from contributions. Noodles & Company may spend more or less than the aggregate contributions of all restaurants in any fiscal year and may borrow from lenders or invest any surplus for future use.
Noodles & Company will prepare an annual unaudited statement of monies collected and costs incurred by the ABDF, providing a copy upon request. The document specifies that Noodles & Company assumes no direct or indirect liability or obligation regarding the maintenance, direction, or administration of the ABDF and does not act as a trustee or in any fiduciary capacity regarding the ABDF.
Notably, Noodles & Company did not collect any ABDF funds in its 2024 fiscal year. While Noodles & Company is not currently charging an ABDF fee, they reserve the right to do so in the future upon notice to franchisees. Additionally, Noodles & Company does not plan to use any marketing fees collected from franchisees to market the sale of franchises.