What is the standard Franchise Fee for a Noodles & Company restaurant?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
credited against any other fees.
Franchise Agreement.
The Franchise Fee is $35,000 per restaurant. The Franchise Fee is due on the first to occur of: (1) the commencement of construction; (2) execution of the Franchise Agreement; or (3) the date the franchised restaurant is required to be opened under the Area Development Agreement. The $35,000 Development Fee paid for the first Noodles & Company restaurant you are required to develop will be credited against the Franchise Fee due to us under the Franchise Agreement for that restaurant. For each additional Noodles & Company restaurant you are required to develop under the Area Development Agreement, the $10,000 Development Fee for each restaurant will be credited against the Franchise Fee due to us under the Franchise Agreement for that restaurant, leaving a balance of $25,000. These credits will only be applied if the total Development Fee due for all Noodles & Company restaurants you are required to develop under the Area Development Agreement was timely and fully paid. Except for the credits described above, and in the case of a sale of a Company-owned Restaurant, operation in a Non-Traditional Venue or joint venture, if any (see Item 1), the $35,000 Franchise Fee is uniform to all Area Operators currently purchasing
Source: Item 5 — INITIAL FEES (FDD page 18)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the standard Franchise Fee is $35,000 per restaurant. This fee is generally uniform for all Area Operators purchasing a franchise. The Franchise Fee becomes due upon the earliest of these events: the start of construction, the execution of the Franchise Agreement, or the date the franchised restaurant is required to open under the Area Development Agreement.
Notably, the Development Fee paid for the first Noodles & Company restaurant ($35,000) is credited against the Franchise Fee for that initial restaurant. For each subsequent restaurant developed under an Area Development Agreement, $10,000 of the Development Fee is credited towards the Franchise Fee, leaving a balance of $25,000 to be paid. However, these credits are only applied if the total Development Fee for all required Noodles & Company restaurants has been paid on time and in full.
The Franchise Fee is non-refundable, either in whole or in part, under any circumstances. The Development Fee is also nonrefundable. This is a common practice in franchising, as these fees compensate the franchisor for initial services and rights granted to the franchisee. Prospective franchisees should be aware of this non-refundable policy and carefully consider their decision before paying these fees to Noodles & Company.