Is any portion of the Noodles & Company Franchise Fee refundable?

According to the 2025 Noodles & Company Franchise Disclosure Document, the $35,000 Franchise Fee is generally non-refundable. The FDD states explicitly that "No portion of the Franchise Fee is refundable." This means that under normal circumstances, if a prospective franchisee decides not to proceed with opening a Noodles & Company restaurant after paying the Franchise Fee, they will not receive a refund. This is a standard practice in the franchise industry, as the fee covers Noodles & Company's initial costs in evaluating and setting up the franchisee.

However, the Development Fee, which is $35,000 for the first restaurant and $10,000 for each additional restaurant under the Area Development Agreement, can be credited towards the Franchise Fee under specific conditions. The $35,000 Development Fee paid for the first Noodles & Company restaurant is credited against the Franchise Fee due for that restaurant. For each additional restaurant, the $10,000 Development Fee is credited against the Franchise Fee, leaving a balance of $25,000. These credits are only applied if the total Development Fee due for all restaurants is paid on time and in full.

Prospective Noodles & Company franchisees should be aware that failing to develop or open restaurants according to the Area Development Agreement means that no portion of the Development Fee will be refundable. Additionally, the Franchise Fee must be paid by the Required Opening Date, regardless of whether the Franchise Agreement has been signed or the restaurant is open or under construction. This underscores the importance of careful planning and due diligence before entering into an agreement with Noodles & Company, as the financial commitments are significant and non-refundable under most circumstances.