What is the order of disbursement from the Advertising and Brand Development Funds (ABDF) for Noodles & Company?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
The ABDF will be accounted for separately from our other funds. While our intent is to balance the ABDF on an annual basis, the ABDF may run at either a surplus or deficit. All disbursements from the ABDF will be made first from income, then from rebates received from suppliers and then from contributions. We may spend, in any fiscal year, an amount greater or less than the aggregate contributions of all Noodles & Company restaurants to the ABDF in that year, and the ABDF may borrow from us or other lenders to cover deficits in the ABDF or cause the ABDF to invest any surplus for future use by the ABDF. We will prepare annually an unaudited statement of monies collected and costs incurred by the ABDF and furnish you a copy upon your request. Except as otherwise expressly provided in the Franchise Agreement, we assume no direct or indirect liability or obligation regarding the maintenance, direction or administration of the ABDF. We do not act as a trustee or in any other fiduciary capacity regarding the ABDF.
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, the ABDF disbursements will follow a specific order. First, the disbursements will be made from income. After income, the ABDF will use rebates received from suppliers. Finally, if additional funds are needed, the ABDF will use contributions.
Noodles & Company retains sole discretion over the programs financed by the ABDF, including media, public relations, and creative concepts. While the ABDF aims to enhance brand recognition for all Noodles & Company restaurants, there's no guarantee that any particular restaurant will directly benefit from these advertising and marketing efforts.
It's important to note that Noodles & Company did not collect any ABDF funds in their 2024 fiscal year. The ABDF is accounted for separately from Noodles & Company's other funds and may operate at a surplus or deficit. Noodles & Company may also borrow funds or invest any surplus for future use by the ABDF.