factual

Do Noodles & Company Company-owned Restaurants contribute to Cooperatives on the same basis as franchisees?

Noodles_Company Franchise · 2025 FDD

Answer from 2025 FDD Document

Any Noodles & Company Company-owned Restaurant located in such designated local or regional (or national if applicable) area(s) will contribute to the Cooperative on the same basis.

Source: Item 23 — RECEIPT (FDD pages 99–350)

What This Means (2025 FDD)

According to Noodles & Company's 2025 Franchise Disclosure Document, company-owned restaurants contribute to marketing cooperatives on the same basis as franchised locations. If a Noodles & Company company-owned restaurant is located in an area designated for a local, regional, or national cooperative, it will contribute to that cooperative.

This means that franchisees and company-owned restaurants share the responsibility of funding local marketing efforts through cooperatives. These cooperatives are designed to administer marketing programs and develop promotional materials, subject to Noodles & Company's approval. All members of the cooperative, including franchisees, must contribute an amount determined by the cooperative's bylaws, using a collection structure selected and established by Noodles & Company.

Noodles & Company retains significant control over these cooperatives. The brand must approve the organization, governance, and operational start date of each cooperative in writing. Furthermore, no changes to the cooperative's bylaws or governing documents can be made without Noodles & Company's prior written consent. All marketing and promotional plans and materials must also be approved by Noodles & Company before they are used by the cooperative or its members. This ensures that all marketing efforts align with the brand's standards and support its overall image.

Franchisees should be aware that participation in these cooperatives is mandatory. If a Noodles & Company restaurant is within the territory of an existing cooperative when it opens, the franchisee must immediately become a member. If a cooperative is established after the restaurant opens, the franchisee must join within 30 days of the approved start date. Additionally, Noodles & Company can mandate participation in special promotions, requiring franchisees to pay special promotion marketing fees in addition to their regular cooperative contributions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.