What is the 'MAF' according to the Noodles & Company FDD, and where is it further defined?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
10.04 Marketing Administration Fee. ("MAF"). In addition to the advertising and promotional expenditures and/or contributions required by Sections 10.01 and 10.02 hereof, you shall contribute a Marketing Administration Fee ("MAF"), currently 1.25% of Net Royalty Sales, payable on the first (1st) business day following the immediately preceding Reporting Period, together with the Royalty Fees due hereunder. At our discretion, we may Sweep the designated account referred to in Section 6.04 hereof to obtain the MAF contributions. The MAF shall be our exclusive property and shall be used by us to cover costs of, among other things, employing advertising/public relations agencies, supporting and conducting market research activities, concept development (food and customer experience, project development and testing), design development (design, Restaurant prototype and testing), and maintenance, administration and direction of the foregoing activities. We do not separately account for the MAF or the expenditures there from.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, the 'MAF' refers to the Marketing Administration Fee. This fee is further defined in Section 10.04 of the agreement.
Section 10.04 specifies that, in addition to other advertising and promotional expenditures, franchisees must contribute to the MAF. Currently, this fee is set at 1.25% of Net Royalty Sales. This payment is due on the first business day following each reporting period, coinciding with royalty fee payments. Noodles & Company has the discretion to directly withdraw (Sweep) the MAF contributions from a designated account.
The MAF remains the exclusive property of Noodles & Company, which uses it to cover various marketing-related costs. These include expenses for advertising and public relations agencies, market research activities, concept development (food and customer experience), project development and testing, design development (restaurant prototype and testing), and the maintenance, administration, and direction of these activities. Noodles & Company does not provide separate accounting for the MAF or its expenditures.