Does the Purchase Price include any applicable federal, state and local taxes for Noodles & Company?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You will promptly pay all federal, state and local taxes arising out of the operation of your business. We will not be liable for these or any other taxes and you herby do and will indemnify us for any such taxes that may be assessed or levied against us which arise or result from your business. You shall reimburse us for any sales tax, gross receipts tax, use tax or other tax or assessment imposed by any taxing authority in the state where the Restaurant is located on any fees or other amounts payable to us under this Agreement. Such taxes are distinguishable from income taxes imposed on us by the jurisdiction in which the Restaurant is located. Such income taxes are our responsibility.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, franchisees are responsible for paying all federal, state, and local taxes related to the operation of their business. Noodles & Company will not be liable for these taxes, and the franchisee must indemnify Noodles & Company for any such taxes assessed or levied against them that arise from the franchisee's business.
Furthermore, franchisees are required to reimburse Noodles & Company for any sales tax, gross receipts tax, use tax, or other tax or assessment imposed by any taxing authority in the state where the restaurant is located on any fees or other amounts payable to Noodles & Company under the Franchise Agreement. These taxes are separate from income taxes imposed on Noodles & Company, which are the responsibility of Noodles & Company.
This means that the purchase price for a Noodles & Company franchise does not include any federal, state, or local taxes. The franchisee is solely responsible for these taxes, and must also reimburse Noodles & Company for any taxes imposed on fees paid to them by the franchisee. Prospective franchisees should factor these tax obligations into their financial planning.