factual

What is the definition of 'New Restaurants' in the context of development fees for Noodles & Company?

Noodles_Company Franchise · 2025 FDD

Answer from 2025 FDD Document

"Grand Opening Marketing Program" – The marketing program required by Sections 3.05 and 10.03 for the purpose of marketing each new Restaurant you open.

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

What This Means (2025 FDD)

The 2025 Noodles & Company Franchise Disclosure Document defines 'Grand Opening Marketing Program' which is related to opening new restaurants. It is defined as the marketing program required for the purpose of marketing each new restaurant a franchisee opens.

However, the document does not specifically define "New Restaurants" in the context of development fees. The FDD does outline the fees associated with developing new Noodles & Company restaurants. The development fee is $10,000 per restaurant listed on Exhibit A, except for the first restaurant, which has a $35,000 development fee. The franchise fee is $35,000, and the first $10,000 of the franchise fee for each subsequent restaurant is deemed paid when the development fee is paid in full.

To fully understand what Noodles & Company considers a 'New Restaurant' in relation to development fees, a prospective franchisee should seek clarification from the franchisor. Specifically, they should inquire about any nuances or conditions that might apply to the definition, such as whether a relocated or remodeled restaurant would be considered 'new' for fee purposes.

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.