How do members of a Noodles & Company Cooperative contribute to the Cooperative?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
the time of the vote);
- (b) each Cooperative shall be organized and governed in a form and manner, and shall commence operations on a date, approved in advance by us in writing; no changes in the by-laws or other governing documents of a Cooperative shall be made without our prior written consent;
- (c) each Cooperative shall be organized for the exclusive purpose of administering marketing programs and developing, subject to our approval, promotional materials for use by the members in the Cooperative;
- (d) no marketing or promotional plans or materials may be used by a Cooperative or furnished to its members without prior approval by us pursuant to Section 10.05(f) below;
- (e) you and each other member of the Cooperative shall contribute to the Cooperative, using a collection structure selected and established by us, the amount determined in accordance with the Cooperative's by-laws. Any Noodles & Company Company-owned Restaurant located in such designated local or regional (or national if applicable) area(s) will contribute to the Cooperative on the same basis. Contributions to such local and/or regional or national marketing cooperatives are applied towards the marketing expenditures required by Section 10.02; however, if we provide you and your Cooperative 30 days' notice of a special promotion, including any regional promotions, you must participate in such promotion and pay to us any special promotion marketing fees assessed in connection therewith, beginning on the effective date of such notice and continuing until such special promotion is concluded. Any such special promotion marketing fees shall be in addition to, and not applied towards, the aggregate maximum marketing expenditure required by Section 10.01 and 10.02;
- (f) all marketing and promotion by you and the Cooperatives shall be approved by us in writing prior to implementation, shall be conducted in a manner that supports the brand, and shall conform to such standards and requirements as we may specify.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, franchisees are required to participate in marketing cooperatives if established by Noodles & Company. Franchisees contribute to the cooperative based on an amount determined in accordance with the cooperative's bylaws. The collection structure for these contributions is selected and established by Noodles & Company. Company-owned Noodles & Company restaurants within the designated area also contribute to the cooperative on the same basis as franchisees. These cooperative contributions are applied toward the franchisee's marketing expenditure requirements.
However, Noodles & Company can implement special promotions with 30 days' notice, requiring franchisees to participate and pay special promotion marketing fees. These fees are in addition to the regular cooperative contributions and do not count towards the aggregate maximum marketing expenditure required. All marketing and promotion plans, including those by the cooperative, must be approved by Noodles & Company in writing before implementation to ensure they support the brand's standards.
Franchisees must also provide Noodles & Company with documentation of their cooperative contributions upon request to verify compliance with marketing requirements. Cooperatives have the option to spend more on marketing than the amount established by Noodles & Company, but this additional spending does not reduce the maximum marketing fees that Noodles & Company may charge. Noodles & Company may also provide accounting services to the cooperatives at market rates or select a third-party accounting firm, with the cooperative responsible for covering these accounting costs.