What fees are required for the renewal of a Noodles & Company franchise?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of fee | Amount | Due Date | Remarks (1) |
|---|---|---|---|
| Renewal of Franchise | Then-current standard Franchise Fee and our associated costs | Upon grant of successor franchise |
Source: Item 6 — OTHER FEES (FDD pages 19–22)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, franchisees must pay the then-current standard franchise fee and associated costs to renew their franchise. This fee is due upon the grant of a successor franchise. The FDD does not specify a fixed dollar amount for the renewal fee, indicating that it may change over time. This is a fairly standard practice in franchising, as renewal fees are often adjusted to reflect current market conditions and the franchisor's costs.
As the renewal fee is not a fixed amount, prospective Noodles & Company franchisees should inquire about the current standard franchise fee and what 'associated costs' might entail. Understanding these costs is crucial for financial planning and assessing the long-term profitability of the franchise. Franchisees should also clarify whether the 'associated costs' include legal fees, training expenses, or other charges related to the renewal process.
It is important to note that the renewal fee is due upon the grant of the successor franchise, meaning that franchisees will need to have these funds available when their current franchise term is coming to an end and they are approved for renewal. This could impact a franchisee's cash flow and should be factored into their financial projections. Franchisees should also review the Franchise Agreement for any additional terms or conditions related to franchise renewal, as these may provide further details about the process and associated costs.