When is the Marketing Administration Fee (MAF) payable for a Noodles & Company franchise?
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 Noodles & Company's 2025 Franchise Disclosure Document, the Marketing Administration Fee (MAF) is payable on the first business day following the immediately preceding Reporting Period. This fee is in addition to any other advertising and promotional expenditures or contributions required by the franchise agreement.
The MAF is currently set at 1.25% of Net Royalty Sales. Noodles & Company has the right to withdraw the MAF contributions from a designated account. This account is established by the franchisee before the Noodles & Company restaurant opens.
The funds collected through the MAF are the exclusive property of Noodles & Company. Noodles & Company uses these funds to cover costs associated with advertising and public relations agencies, market research, concept development, design development, and the maintenance and administration of these activities. Noodles & Company does not provide a separate accounting of the MAF or its expenditures.