Is the Noodles & Company Development Fee credited against any other fees?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
e estimate can be developed within the Development Area.
The Development Fee is uniform for all franchisees, no portion of the Development Fee is refundable, and, except as provided below, the Development Fee is not credited against any other fees.
Franchise Agreement.
The Franchise Fee is $35,000 per restaurant. The Franchise Fee is due on the first to occur of: (1) the commencement of construction; (2) execution of the Franchise Agreement; or (3) the date the franchised restaurant is required to be opened under the Area Development Agreement. The $35,000 Development Fee paid for the first Noodles & Company restaurant you are required to develop will be credited against the Franchise Fee due to us under the Franchise Agreement for that restaurant. For each additional Noodles & Company restaurant you are required to develop under the Area Development Agreement, the $10,000 Development Fee for each restaurant will be credited against the Franchise Fee due to us under the Franchise Agreement for that restaurant, leaving a balance of $25,000. These credits will only be applied if the total Development Fee due for all Noodles & Company restaurants you are required to develop under the Area Development Agreement was timely and fully paid. Except for the credits described above, and in the case of a sale of a Company-owned Restaurant, operation in a Non-Traditional Venue or joint venture, if any (see Item 1), the $35,000 Franchise Fee is unif
Source: Item 5 — INITIAL FEES (FDD page 18)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the Development Fee is generally not credited against other fees, but there are exceptions. The standard Development Fee is $35,000 for the first restaurant and $10,000 for each additional restaurant under the Area Development Agreement.
Specifically, the $35,000 Development Fee paid for the first Noodles & Company restaurant is credited against the Franchise Fee due under the Franchise Agreement for that restaurant. For each additional restaurant, the $10,000 Development Fee is credited against the Franchise Fee, leaving a balance of $25,000 to be paid.
These credits are applied only if the total Development Fee due for all Noodles & Company restaurants is paid on time and in full. Except for these specific credits, and in cases involving the sale of a Company-owned Restaurant, operation in a Non-Traditional Venue, or a joint venture, the standard $35,000 Franchise Fee applies to all Area Operators.