What is a 'Sweep Period' in relation to fees owed by a Noodles & Company franchisee?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
A Reporting Period is defined as each one-week period commencing on Wednesday and ending on Tuesday, or other period as we may determine. A Sweep Period will be the period of time for which a Sweep of the Area Operator's account has been made by Noodles & Company to obtain the Royalty Fee, ABDF, MAF or any other fees or payments due, but for which a prior Sweep was
not made. You may engage with third-party food ordering and delivery systems, and ring up and account for ordering, delivery and catering charges not included in the price of products, only in the manner we permit.
Source: Item 6 — OTHER FEES (FDD pages 19–22)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, a 'Sweep Period' refers to the duration for which Noodles & Company makes a sweep of the Area Operator's account to collect fees. This occurs when a prior sweep for the Royalty Fee, Advertising Brand Development Fund (ABDF), Marketing Administration Fee (MAF), or other due payments was not conducted.
In simpler terms, if Noodles & Company misses an automatic payment withdrawal for royalties or other fees, the 'Sweep Period' is the timeframe they cover in a subsequent withdrawal to catch up on those missed payments. This ensures that Noodles & Company receives all owed fees, even if there was a delay in the initial collection process.
For a prospective Noodles & Company franchisee, understanding the 'Sweep Period' is important for managing their finances. It means they should be prepared for the possibility of larger-than-usual automatic withdrawals if a previous payment was missed. Franchisees should maintain sufficient funds in their account to cover any potential 'sweep' of outstanding fees to avoid any penalties or disruptions.