Does Noodles & Company currently charge a ABDF fee to franchisees?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
nt rate for franchisees. You must contribute to the ABDF amounts that we establish as described in Item 6. We are not currently charging you a ABDF fee; however, we reserve the right to do so in the future upon notice to you. As discussed in Section 9.11 of the Franchise Agreement and Item 8 of this disclosure document, we reserve the right to require rebates from vendors attributable to marketing to go into the ABDF as well; however, we are not currently collecting these rebates.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–48)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, Noodles & Company is not currently charging an Advertising & Brand Development Fund (ABDF) fee to franchisees. However, Noodles & Company retains the right to implement this fee in the future with notice to franchisees.
The ABDF, if established, would be used for the creation and development of marketing materials and programs designed to increase brand awareness and promote the Noodles & Company brand. These materials and programs could include a wide range of marketing efforts, such as media advertising (CTV, radio, outdoor, print, search, and social media), digital menu board content, website and app content, press releases, influencer campaigns, and loyalty programs. Noodles & Company would use national and regional agencies, as well as in-house personnel, to manage these marketing efforts.
Franchisees are currently required to spend a certain percentage of their Net Royalty Sales on local advertising, public relations, and marketing through Field Marketing Funds (FMF). This amount is initially set at 1.0% of Net Royalty Sales, but Noodles & Company can change this amount with 30 days' notice. If a marketing cooperative is established in the franchisee's market area, franchisees must participate and contribute to it, with Noodles & Company contributing on the same basis for company-owned restaurants. These cooperative contributions count toward the FMF requirement. Special promotion marketing fees may also be assessed in addition to the FMF.
Noodles & Company also states that they did not collect any ABDF funds in their 2024 fiscal year and do not plan to use marketing fees collected from franchisees to market the sale of franchises.