Under what circumstances might Noodles & Company consider reducing the royalty fee or offering a development incentive to a franchisee?

According to Noodles & Company's 2025 Franchise Disclosure Document, the company may, on occasion, consider reducing the royalty fee or offering a development incentive to address specific concerns. This is not an automatic or guaranteed reduction, but rather a possibility that Noodles & Company evaluates based on several factors.

These factors include situations where a franchisee commits to developing a significant number of franchised restaurants. This suggests that Noodles & Company is interested in incentivizing franchisees who are willing to expand the brand's presence substantially. Another factor is when a franchisee agrees to significantly accelerate historical development patterns, indicating that Noodles & Company wants to encourage faster growth than what has been typical in the past.

Noodles & Company may also consider these incentives if a franchisee agrees to develop franchised restaurants in a new territory, which implies that the company is looking to expand into untapped markets. Lastly, a franchisee proposing to develop unique sites could also be eligible for such considerations, suggesting that Noodles & Company values innovative or strategic location choices. These incentives are not guaranteed and are subject to Noodles & Company's discretion based on a variety of factors.