To whom are the architectural and other design fees for a Noodles & Company franchise paid?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount (2) | Method of Payment | When Due | To Whom Payment is to be Made | |
|---|---|---|---|---|---|
| Low | High | ||||
| Build-out Costs (3) | |||||
| Leasehold Improvements (4) | $381,000 | $822,000 | As Arranged | As Incurred, Subject to Negotiated Terms | Contractors & Government Agencies |
| Architectural & Other Design Fees (4) | $47,000 | $116,000 | As Arranged | As Incurred, Subject to Negotiated Terms | Architects & Engineers |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, architectural and other design fees, which range from $47,000 to $116,000, are paid to architects and engineers. These fees are part of the initial investment required to open a franchise. The payment method is arranged and due as incurred, subject to negotiated terms.
These fees cover the costs associated with designing the Noodles & Company restaurant to meet the brand's specifications and local regulations. This includes architectural plans, engineering work, and other design services necessary to ensure the restaurant is properly constructed and compliant. Since these fees are paid directly to the architects and engineers, franchisees will need to negotiate terms and manage these relationships independently.
Prospective franchisees should factor these design fees into their overall budget and understand that the final amount can vary based on the complexity of the design and the location of the restaurant. It is important to obtain detailed quotes from multiple architects and engineers to ensure competitive pricing and to negotiate favorable payment terms. Additionally, franchisees should confirm that the architects and engineers they hire are familiar with Noodles & Company's design standards and requirements to avoid potential rework and additional costs.
Understanding to whom payments are made for various aspects of the build-out, like architectural fees, is crucial for budgeting and managing the initial investment effectively. This transparency allows franchisees to plan their finances and build relationships with the appropriate vendors.