factual

Does the Noodles & Company Franchise Fee include the Development Fee?

Noodles_Company Franchise · 2025 FDD

Answer from 2025 FDD Document

The amount of the Franchise Fee also includes the Development Fee.

Additional information regarding the Development Fee and Franchise Fee and the manner in which those fees are paid is provided in Item 5.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)

What This Means (2025 FDD)

According to the 2025 Noodles & Company Franchise Disclosure Document, the franchise fee does include the development fee. The document specifies that the amount of the Franchise Fee includes the Development Fee. Item 5 provides additional information regarding the Development Fee and Franchise Fee, including how those fees are to be paid.

For a prospective Noodles & Company franchisee, this means that the initial franchise fee covers both the right to open a single restaurant and the rights to develop multiple locations within a specific area, if applicable. This bundled fee structure can simplify the initial investment process, as franchisees do not need to pay separate fees for development rights. However, it is important to review Item 5 of the FDD to understand the specific payment terms and conditions associated with both the Franchise Fee and the Development Fee.

Understanding the details in Item 5 is crucial because it will outline the payment schedule, any conditions attached to the Development Fee (such as development timelines or minimum restaurant commitments), and whether any portion of the fees are refundable under certain circumstances. This information will help potential franchisees plan their finances and development strategy effectively. The initial franchise fee ranges from $35,000 to $35,000.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.