What is the Development Fee for the first Noodles & Company restaurant developed under the agreement?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) The Development Fee shall be $10,000.00 per restaurant listed on Exhibit A for each restaurant, except the Development Fee for the first restaurant developed pursuant to this Agreement shall be $35,000.
All Development Fees must be paid in full on or before the day we execute this Agreement.
You acknowledge and agree that no portion of the Development Fee shall be refundable for any Noodles & Company restaurants that you have failed (for any reason or no reason) to develop in accordance with the terms of this Agreement.
The Development Fee and each Franchise Fee is fully earned by Noodles & Company at such time it is paid.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the Development Fee for the first restaurant developed under the agreement is $35,000. This fee is payable in full on or before the day the Area Development Agreement is executed.
The Development Fee is non-refundable, regardless of whether the franchisee fails to develop the restaurants for any reason. Noodles & Company considers the Development Fee fully earned once it is paid.
This upfront investment grants the franchisee the right to develop Noodles & Company restaurants within a specific area, but it's crucial to understand that failing to meet the development schedule means losing the fee for those undeveloped locations. This policy is fairly standard in franchise development agreements, as it compensates the franchisor for the initial work involved in awarding the development rights and setting up the franchisee.