When is the Franchise Fee for the first Noodles & Company restaurant deemed paid?
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
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 the first restaurant is considered paid when the Development Fee is paid in full. The Development Fee is $10,000 per restaurant listed on Exhibit A, except for the first restaurant, where it is $35,000.
This means that a prospective Noodles & Company franchisee developing their first location under an Area Development Agreement will have the $35,000 franchise fee covered once they pay the initial $35,000 Development Fee. For each subsequent restaurant, $10,000 of the Franchise Fee is considered paid when the Development Fee is paid in full. The balance of the Franchise Fee is payable as outlined in the Franchise Agreement, except as set forth in Section 3.04(e).
This arrangement benefits franchisees by aligning the initial franchise fee payment with the development fee, potentially easing the upfront financial burden. However, franchisees should be aware that no portion of the Development Fee is refundable for restaurants they fail to develop, regardless of the reason.