Who pays for the accounting services provided to a Noodles & Company cooperative?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
As discussed in Section 9.11 of this Agreement, at our election, supplier rebates or allowances attributable to Marketing may be paid into the BDF and used by us, in our sole discretion, for any purpose permitted by the BDF.
The BDF will be accounted for separately from our other funds. All disbursements from the BDF shall be made first from income and then from contributions. While our intent is to balance the BDF on an annual basis, from time to time the BDF may run at either a surplus or deficit. We may spend in any fiscal year an amount greater or less than the aggregate contributions of all Noodles & Company owned and franchised Restaurants to the BDF in that year, and the BDF may borrow from us or other lenders to cover deficits in the BDF and we may cause the BDF to invest any surplus for future use by the BDF and roll over unspent monies to the following year. We will prepare annually an unaudited statement of monies collected and costs incurred by the BDF and furnish a copy to you upon your written request. Except as otherwise expressly provided in this Section 10.01, we assume no direct or indirect liability or obligation with respect to the maintenance, direction or administration of the BDF. We do not act as trustee or in any other fiduciary capacity with respect to the BDF.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
The 2025 Noodles & Company Franchise Disclosure Document (FDD) outlines the financial responsibilities related to the Brand Development Fund (BDF), which functions as a marketing fund. While the FDD details how the BDF is managed and used, it does not specifically state who pays for the accounting services related to a marketing cooperative.
According to the FDD, Noodles & Company manages the BDF and provides an annual unaudited statement of monies collected and costs incurred. This statement is available to franchisees upon written request. The BDF uses contributions from both franchised and company-owned Noodles & Company restaurants and may also include supplier rebates or allowances attributable to marketing. The funds are used for various marketing and advertising expenses, such as creating materials, media planning, and market research.
Because the FDD does not specify who covers the accounting costs for the cooperative, prospective franchisees should directly ask Noodles & Company about these expenses. Understanding who bears the responsibility for these costs is crucial for assessing the overall financial obligations and potential profitability of a Noodles & Company franchise.