Is the Noodles & Company Development Fee uniform for all franchisees?
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.
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 uniform for all franchisees. Under the Area Development Agreement, a franchisee must pay a non-refundable development fee of $35,000 for the first Noodles & Company restaurant and $10,000 for each additional restaurant they agree to open. This fee is payable upon execution of the Area Development Agreement.
The number of Noodles & Company restaurants a franchisee may develop is determined by mutual agreement, with a minimum commitment of three restaurants. This number depends on factors such as population, competition, location availability, and the estimated number of restaurants the area can support.
It is important to note that the Development Fee is not credited against other fees, except as specifically provided. The $35,000 Development Fee paid for the first restaurant will be credited against the Franchise Fee due under the Franchise Agreement for that restaurant. For each additional restaurant, the $10,000 Development Fee will be credited against the Franchise Fee, leaving a balance of $25,000. These credits are only applied if the total Development Fee due for all restaurants is paid on time and in full.