Is Noodles & Company obligated to establish an Advertising & Brand Development Fund (ABDF)?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
ials. If approved, such materials will become the property of Noodles & Company.
Brand Development Fund.
We may, at our sole discretion, establish and administer an Advertising & Brand Development Fund ("ABDF") for the creation and development of creative materials and programs to increase brand awareness and promote the Noodles & Company brand, which may include the production and creation of marketing, advertising and public relations related programs and materials and/or fees, including media, CTV, radio, outdoor, print, search and social media, digital menu board content, POP content, website, online ordering, App content and creation, press releases, brand articles, digital programming influencers, loyalty campaigns and execution, video, photography, copywriting, graphics design and production, local marketing strategies, new restaurant opening strategies, media buying and agency fees. ("Marketing"). We will use national and regional agencies as well as our in-house marketing and public relations personnel as we deem appropriate. At our discretion, the ABDF may also pay for consumer research and the production and deployment of marketing and public relations materials. We reserve the right to have our affiliate, or a related entity manage this fund. If not covered by the ABDF, each restaurant, whether Franchise-owned or Company-owned, will be responsible for its pro rata share (or, if applicable, on a use basis), on a per restaurant basis, of the actual production costs and fees (such as print ad fees) of the marketing materials, which can be paid by dollars contributed to the Field Marketing
Fund ("FMF"). Noodles & Company restaurants owned by us, and our affiliate will contribute to the ABDF on the same basis as the then-current rate for franchisees. You must contribute to the ABDF amounts that we establish as described in Item 6. We are not currently charging you a ABDF fee; however, we reserve the right to do so in the future upon notice to you. As discussed in Section 9.11 of the Franchise Agreement and Item 8 of this disclosure document, we reserve the right to require rebates from vendors attributable to marketing to go into the ABDF as well; however, we are not currently collecting these rebates.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–48)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, Noodles & Company is not obligated to establish an Advertising & Brand Development Fund (ABDF). The FDD states that Noodles & Company may, at its sole discretion, establish and administer an ABDF. This fund would be used for the creation and development of creative materials and programs designed to increase brand awareness and promote the Noodles & Company brand. These materials and programs could include marketing, advertising, and public relations efforts across various media such as CTV, radio, outdoor, print, search, and social media.
Noodles & Company can use national and regional agencies, as well as in-house marketing and public relations personnel, as deemed appropriate. The ABDF may also cover consumer research and the production and deployment of marketing and public relations materials. If the ABDF does not cover these costs, each restaurant, whether franchise-owned or company-owned, is responsible for its pro rata share of the actual production costs and fees of the marketing materials, which can be paid by dollars contributed to the Field Marketing Fund (FMF).
Franchisees must contribute to the ABDF amounts that Noodles & Company establishes, as detailed in Item 6. However, as of the 2025 FDD, Noodles & Company is not currently charging an ABDF fee but reserves the right to do so in the future with notice. Additionally, Noodles & Company may require rebates from vendors attributable to marketing to go into the ABDF, although they are not currently collecting these rebates. In 2024, Noodles & Company did not collect any ABDF funds.