How will Noodles & Company collect cooperative advertising contributions?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
The bylaws of your cooperative will be made available for you to review. Each member of the cooperative (including us) will have one vote for each restaurant that is open and operating. We will administer the advertising cooperatives and collect your cooperative advertising contributions by automatic electronic withdrawal. The financial statements of the advertising cooperatives may be unaudited or audited as we determine, and the reports will be made available to you. Each Noodles & Company restaurant located within the local or regional area of the advertising cooperative will be entitled to one vote in the cooperative. Advertising conducted by the cooperatives may be in various media including television, radio, Internet, magazine, newspaper, billboards, transit and aerial advertising.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–48)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, if a marketing cooperative is established in a franchisee's market area, the franchisee must participate and contribute as determined by the cooperative's bylaws. Noodles & Company restaurants owned by the company or its affiliates in the same area will also contribute on the same basis. These contributions count toward the Field Marketing Funds (FMF) expenditure required by the Franchise Agreement. However, franchisees must also participate in any special promotions and pay any special promotion marketing fees assessed, which are in addition to the FMF. The cooperatives can choose to spend more than the amount established by Noodles & Company for FMF. Each member of the cooperative, including Noodles & Company, has one vote for each open and operating restaurant.
Noodles & Company will administer the advertising cooperatives and collect contributions through automatic electronic withdrawal. The financial statements of the advertising cooperatives may be unaudited or audited as Noodles & Company determines, and these reports will be made available to franchisees. Advertising conducted by the cooperatives may use various media, including television, radio, Internet, magazines, newspapers, billboards, and transit and aerial advertising.
This means that franchisees will be required to participate in local advertising cooperatives if they are established in their area and that Noodles & Company will automatically withdraw the required contributions from their accounts. Franchisees should review the cooperative's bylaws to understand how the contribution amounts are determined and how the funds are spent. Franchisees should also be aware that they may be required to participate in special promotions and pay additional fees, and that the financial statements of the cooperatives may not be audited.