What is the amount of the nonrefundable franchise fee for a Noodles & Company restaurant?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
pay for damages of any claim for which Area Operator would otherwise be entitled to indemnification arises only if and to the extent that Area Operator's insurance coverage does not or would not (absent any right to indemnification by Noodles & Company) provide coverage for such claims. In the event that Area Operator has failed to obtain and keep in force all policies that it is obligated to carry under the terms of its agreements with Noodles & Company and one or more of such policies would or could have provided coverage for the claim, then Noodles & Company is not obligated to indemnify, defend or pay damages, settlements, or have any liability for such claim.
6. FEES.
6.01 Franchise Fee. You agree to pay us a nonrefundable franchise fee of $35,000 ("Franchise Fee"). The Franchise Fee is payable upon execution of this Agreement or when Construction is Commenced for the
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, the standard franchise fee is $35,000. This fee is nonrefundable under any circumstances and must be paid upon the execution of the Franchise Agreement or when construction commences on the restaurant, whichever occurs first.
For franchisees who are developing multiple Noodles & Company restaurants under an Area Development Agreement, the payment structure for the franchise fee is slightly different. The franchise fee for the first restaurant is considered paid in full when the Development Fee of $35,000 is paid. For each subsequent restaurant, $10,000 of the $35,000 franchise fee is considered paid when the Development Fee is paid in full. The remaining balance of $25,000 for each restaurant after the first must be paid either upon the execution of the Franchise Agreement, when construction commences, or on the date the franchised restaurant is required to open under the Area Development Agreement, whichever comes first.
This payment structure is designed to incentivize and support the development of multiple units by Area Operators, staggering the franchise fee payments to align with the progress of each restaurant's development. However, it's crucial to note that all fees, including the initial franchise fee and any development fees, are fully earned by Noodles & Company upon payment and are non-refundable, regardless of whether the franchisee successfully opens and operates the restaurant.