Does incremental excess spending by a Noodles & Company Cooperative diminish the aggregate maximum Noodles & Company may charge for marketing?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- (h) the Cooperative may elect to spend marketing dollars in excess of the amount Noodles & Company establishes.
Such incremental excess shall not diminish the aggregate maximum we may charge for marketing;
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company FDD, if a Noodles & Company Cooperative elects to spend more on marketing than the amount Noodles & Company establishes, this incremental excess spending will not reduce the maximum amount that Noodles & Company can charge for marketing purposes. This means that even if the cooperative increases its marketing expenditure, Noodles & Company retains its right to collect the full amount it is allowed for marketing contributions from franchisees.
This policy ensures that Noodles & Company maintains control over its marketing revenue streams, regardless of the cooperative's spending decisions. For a franchisee, this implies that their marketing obligations to Noodles & Company will remain consistent, irrespective of any additional marketing efforts undertaken by their cooperative.
Franchisees should be aware that while cooperatives can enhance local marketing, these efforts do not offset or decrease their required contributions to Noodles & Company's marketing funds. This dual-layered marketing approach—both franchisor-led and cooperative-led—aims to provide comprehensive brand support, but franchisees must budget for both mandatory contributions and potential cooperative fees.