How is the first $10,000 of the Franchise Fee for subsequent Noodles & Company restaurants handled?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
on of 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.
- (c) The Franchise Fee payable for each Noodles & Company restaurant requ
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the franchise fee for each restaurant after the first is $35,000. However, the first $10,000 of the franchise fee for these subsequent restaurants is considered paid when the Development Fee is paid in full. The balance of the franchise fee is then due as outlined in the Franchise Agreement, except as noted in Section 3.04(e).
This means that if you are developing multiple Noodles & Company restaurants under an Area Development Agreement, the initial Development Fee covers a portion of the franchise fees for the restaurants beyond the first one. This can ease the upfront financial burden when expanding with multiple locations.
For a prospective franchisee, this highlights the importance of understanding the payment schedule and requirements detailed in both the Area Development Agreement and the Franchise Agreement. It's crucial to note the specific conditions and deadlines for paying the remaining balance of the franchise fee to avoid any potential issues or breaches of contract with Noodles & Company.