What do the legal expenses cover for a Noodles & Company franchise?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
pening after the first two grand openings in a market (see Item 11).
-
- Legal expenses will differ by restaurant, Area Operator, individual real estate and site requirements. For Company-owned Restaurants, Noodles & Company handles a significant amount of these activities with our existing management team, including internal legal counsel. The degree to which you may incur these costs will depend on your need for such counsel, your existing infrastructure and personnel, as well as other factors related to cost and complexity of legal and other consultative matters.
-
- This amount represents additional funds needed to cover operating expenses beyond revenue generated for the first three months after opening. The amounts
shown are based on the actual experience of our restaurants in our 2024 fiscal year.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, legal expenses for a franchise can vary. The FDD indicates in Item 7 that these expenses will differ by restaurant, Area Operator, and individual real estate and site requirements. For Company-owned Restaurants, Noodles & Company handles many of these activities with their existing management team, including internal legal counsel.
The degree to which a franchisee may incur these costs depends on their need for counsel, existing infrastructure and personnel, as well as other factors related to the cost and complexity of legal and other consultative matters. The estimated initial investment table shows that legal expenses can range from $0 to $0, meaning that it is possible to not incur any legal expenses. These expenses are paid to attorneys as incurred, subject to negotiated terms.
In practice, this means a prospective Noodles & Company franchisee should carefully consider their own legal needs and capabilities when budgeting for the initial investment. If the franchisee has limited experience with real estate, franchising, or local regulations, they should be prepared to engage legal counsel and incur these costs. It is also important to note that the legal expenses for Company-owned restaurants are handled internally, which may not be the case for franchisees, potentially leading to higher costs for franchisees who need to seek outside legal assistance.