When is the Development Fee payable under the Noodles & Company Area Development Agreement?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
pan id="page-17-0">Area Development Agreement.
Under the Area Development Agreement, you must pay a non-refundable development fee of $35,000 for the first Noodles & Company restaurant contemplated to be opened by you and $10,000 for each additional Noodles & Company restaurant you have agreed to open under the Area Development Agreement ("Development Fee"). The Development Fee is payable upon execution of the Area Development Agreement. The number of Noodles & Company restaurants that you may develop under a particular Area Development Agreement is determined by mutual agreement (with a minimum 3 restaurant commitment). The number of Noodles & Company restaurants we agree that you may develop will depend on a variety of factors, including: (1) the existing population and anticipated population growth within the Development Area; (2) competition within the Development Area; (3) the availability of acceptable locations; and (4) the number of Noodles & Company restaurants we 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, th
Source: Item 5 — INITIAL FEES (FDD page 18)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, the Development Fee is payable upon the execution of the Area Development Agreement. The Development Fee is non-refundable. The fee is $35,000 for the first Noodles & Company restaurant and $10,000 for each additional restaurant you agree to open under the Area Development Agreement.
The number of Noodles & Company restaurants that you may develop is determined by mutual agreement, with a minimum commitment of 3 restaurants. The number of restaurants Noodles & Company agrees that you may develop depends on factors such as population, competition, location availability and the number of restaurants that can be developed within the Development Area.
The Development Fee is uniform for all franchisees and is generally not credited against any other fees, although the $35,000 Development Fee paid for the first Noodles & Company restaurant will be credited against the Franchise Fee due under the Franchise Agreement for that restaurant. For each additional Noodles & Company restaurant, the $10,000 Development Fee will be credited against the Franchise Fee, leaving a balance of $25,000. These credits are applied only if the total Development Fee due for all restaurants is timely and fully paid.