For Noodles & Company, is the initial franchise fee included in the Purchase Price?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
pay for damages of any claim for which Area Operator would otherwise be entitled to indemnification arises only if and to the extent that Area Operator's insurance coverage does not or would not (absent any right to indemnification by Noodles & Company) provide coverage for such claims. In the event that Area Operator has failed to obtain and keep in force all policies that it is obligated to carry under the terms of its agreements with Noodles & Company and one or more of such policies would or could have provided coverage for the claim, then Noodles & Company is not obligated to indemnify, defend or pay damages, settlements, or have any liability for such claim.
6. FEES.
6.01 Franchise Fee. You agree to pay us a nonrefundable franchise fee of $35,000 ("Franchise Fee"). The Franchise Fee is payable upon execution of this Agreement or when Construction is Commenced for the
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, the franchise fee is separate from any purchase price. The franchise agreement states that the franchisee must pay Noodles & Company a nonrefundable franchise fee of $35,000.
The franchise fee is payable upon execution of the Franchise Agreement or when construction is commenced for the premises for such Noodles & Company Restaurant, whichever occurs first. The FDD specifies that the franchise fee is non-refundable, in whole or in part, under any circumstances.
Notably, for the first restaurant developed by the franchisee, the first $10,000 of the franchise fee is considered paid if the Development Fee under the Development Agreement has been paid in full and on time. The remaining balance of $25,000 for each restaurant after the first one must be paid upon execution of the Franchise Agreement, when construction commences, or the date the franchised restaurant is required to be open under the Area Development Agreement, whichever comes first.