Who manages and operates the gift card program for Noodles & Company and its franchisees?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
In March 2020, our wholly-owned subsidiary, Noodles Virginia, acquired in a merger the assets of the third party gift card service provider previously used by us. Noodles Virginia issues the gift cards, bears the liabilities for the cards and manages and operates the gift card program for Noodles & Company and its franchisees. Pursuant to our gift card program, each franchisee will provide proceeds from sales of gift cards to Noodles Virginia and will be credited by Noodles Virginia with the face amount of gift cards redeemed at restaurants operated by the franchisee.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–32)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, Noodles Virginia, a wholly-owned subsidiary of Noodles & Company, manages and operates the gift card program for both Noodles & Company and its franchisees. Noodles Virginia also issues the gift cards and bears the liabilities associated with them. This arrangement centralizes the gift card program's management, ensuring consistency and control across all Noodles & Company locations.
As part of the gift card program, each franchisee is required to remit the proceeds from their gift card sales to Noodles Virginia. In return, Noodles Virginia credits the franchisee with the face value of the gift cards that are redeemed at their specific restaurant. This process ensures that franchisees are properly compensated for the gift cards used at their locations, while Noodles Virginia handles the overall financial and administrative aspects of the program.
This centralized approach to gift card management is beneficial for franchisees as it removes the burden of managing a gift card program independently. It also ensures that all Noodles & Company restaurants participate in a unified system, which can enhance brand recognition and customer loyalty. Prospective franchisees should understand that participation in this gift card program is mandatory and that they must adhere to the procedures established by Noodles Virginia.