Does Noodles & Company assume any direct or indirect liability with respect to the maintenance, direction, or administration of the Brand Development Fund (BDF)?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise expressly provided in this Section 10.01, we assume no direct or indirect liability or obligation with respect to the maintenance, direction or administration of the BDF. We do not act as trustee or in any other fiduciary capacity with respect to the BDF.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, Noodles & Company assumes no direct or indirect liability or obligation regarding the maintenance, direction, or administration of the Brand Development Fund (BDF), except as expressly provided. Noodles & Company does not act as a trustee or in any fiduciary capacity with respect to the BDF.
This means that as a franchisee, you cannot hold Noodles & Company liable for how the BDF is managed or for its outcomes. While the BDF aims to boost the brand and benefit all Noodles & Company restaurants, there's no guarantee that your specific location will directly benefit from advertising initiatives. Noodles & Company has the discretion to decide how the BDF monies are spent.
Noodles & Company may seek advice from restaurant owners regarding the creative concepts and media used for BDF-financed programs. However, the ultimate decision-making authority rests with Noodles & Company. The BDF is used to cover the costs of creating advertising materials, media planning, market research, and employing advertising agencies.
Prospective franchisees should be aware that while they are required to contribute to the BDF, Noodles & Company retains significant control over its management and usage, without assuming liability for its performance. Franchisees should carefully consider this aspect and seek clarification from Noodles & Company regarding the BDF's governance and potential impact on their individual restaurants.