What is the base transfer fee payable to Noodles & Company for transferring the Area Development Agreement?
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, if a franchisee wishes to transfer their Area Development Agreement, they must pay a transfer fee. The base transfer fee is $7,500. In addition to this base fee, the franchisee must also pay $3,500 for each Noodles & Company restaurant for which a Franchise Agreement has been executed or is contemplated by the Area Development Agreement.
Furthermore, the transferring franchisee is responsible for any transfer fee required by any other agreement between the franchisee (or their affiliates) and Noodles & Company (or their affiliates), as well as all costs associated with the transfer. This implies that the total transfer fee can vary significantly depending on the number of restaurants already under agreement and any other existing agreements.
It is important for a prospective Noodles & Company franchisee to understand all the conditions and costs associated with transferring their Area Development Agreement. This includes not only the base fee and per-restaurant fee but also any other potential fees and costs that may arise due to other agreements or the transfer process itself. Additionally, the franchisee should be aware of the other conditions that must be met for the transfer to be approved, such as the transferee agreeing to be bound by the current Area Development Agreement and the execution of a general release of claims against Noodles & Company.