Does Noodles & Company have the right to establish marketing cooperatives for Noodles & Company franchise-owned restaurants?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
If a marketing cooperative is established in your market area, you must participate in the marketing cooperative and its programs and abide by its bylaws. You must contribute the amounts to the marketing cooperative(s) as they determine in accordance with their bylaws. Any Noodles & Company restaurants we or our affiliate owns in the designated local or regional area(s) will contribute to the cooperative(s) on the same basis. Contributions to the local and regional advertising cooperatives are applied toward the FMF marketing expenditures required by the Franchise Agreement; however, if we have local, regional or national promotions, you must participate in the promotion and pay us any special promotion marketing fees assessed regarding the program, beginning on the effective date of the notice and continuing until the special promotion is concluded. Any special promotion advertising fees will be in addition to, and not applied towards, the FMF or any other advertising expenditure required by the Franchise Agreement. Cooperatives may choose to spend more than the amounts established by the Company for FMF.
The bylaws of your cooperative will be made available for you to review. Each member of the cooperative (including us) will have one vote for each restaurant that is open and operating. We will administer the advertising cooperatives and collect your cooperative advertising contributions by automatic electronic withdrawal. The financial statements of the advertising cooperatives may be unaudited or audited as we determine, and the reports will be made available to you. Each Noodles & Company restaurant located within the local or regional area of the advertising cooperative will be entitled to one vote in the cooperative. Advertising conducted by the cooperatives may be in various media including television, radio, Internet, magazine, newspaper, billboards, transit and aerial advertising.
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 has the right to establish marketing cooperatives in a franchisee's market area. If a marketing cooperative is established, franchisees are required to participate in the cooperative's programs and adhere to its bylaws. Franchisees must also contribute to the marketing cooperative as determined by its bylaws. Noodles & Company restaurants that the company or its affiliates own in the same area will contribute to the cooperative on the same basis.
Contributions to these local and regional advertising cooperatives can be applied toward the Field Marketing Fund (FMF) expenditures required by the Franchise Agreement. However, Noodles & Company can implement local, regional, or national promotions that require franchisee participation and payment of special promotion marketing fees, which are in addition to the FMF or any other advertising expenditure required by the Franchise Agreement. The cooperatives have the option to spend more than the amount established by Noodles & Company for the FMF.
The bylaws of the cooperative will be available for franchisee review, and each member, including Noodles & Company, will have one vote for each open and operating restaurant. Noodles & Company will administer the advertising cooperatives and collect contributions through automatic electronic withdrawal. The financial statements of the advertising cooperatives may be unaudited or audited, as determined by Noodles & Company, and will be made available to franchisees. Advertising conducted by the cooperatives may utilize various media, including television, radio, Internet, magazines, newspapers, billboards, and transit and aerial advertising.