According to Noodles & Company's 2025 Franchise Disclosure Document, the Franchise Fee of $35,000 is due upon the first occurrence of three conditions: the commencement of construction, the execution of the Franchise Agreement, or the date the franchised restaurant is required to be opened under the Area Development Agreement. This means a prospective franchisee must be prepared to pay the fee as soon as any of these milestones is reached.

Notably, if a franchisee is developing multiple Noodles & Company restaurants under an Area Development Agreement, the payment schedule interacts with the Development Fee. The $35,000 Development Fee paid for the first restaurant covers the Franchise Fee for that initial location. For subsequent restaurants, the $10,000 Development Fee contributes towards the Franchise Fee, leaving a balance of $25,000 to be paid under the same conditions as above. However, these credits are contingent on the timely and full payment of the total Development Fee for all restaurants under the Area Development Agreement.

It's important to recognize that the Franchise Fee is non-refundable, regardless of circumstances. Furthermore, the FDD specifies that for restaurants to be developed, the Franchise Fee must be paid by the Required Opening Date, even if the Franchise Agreement hasn't been signed or the restaurant isn't yet open or under construction. This clause emphasizes the importance of adhering to the development schedule outlined in Exhibit A of the Area Development Agreement to avoid potential penalties or breach of contract.

Prospective Noodles & Company franchisees should carefully consider these payment terms and ensure they have sufficient capital available to meet these obligations. Understanding the interplay between the Development Fee and Franchise Fee, as well as the non-refundable nature of the Franchise Fee, is crucial for financial planning and risk assessment.