Under what condition will the Development Fee credits not be applied to the Noodles & Company Franchise Fee?

According to the 2025 Noodles & Company Franchise Disclosure Document, the Development Fee credits will only be applied to the Franchise Fee if the total Development Fee due for all Noodles & Company restaurants required to be developed under the Area Development Agreement was timely and fully paid.

In practical terms, this means a prospective Noodles & Company franchisee who enters into an Area Development Agreement must ensure that all Development Fees are paid in full and on time. If any payment is late or incomplete, the franchisee will not receive credit for the Development Fees already paid when the Franchise Fee comes due. This could significantly increase the initial investment required to open each restaurant.

This condition underscores the importance of careful financial planning and management for Noodles & Company franchisees pursuing area development. Franchisees should maintain meticulous records of all payments and adhere strictly to the payment schedule outlined in the Area Development Agreement to avoid losing the Development Fee credit. Failing to do so could result in unexpected costs and potentially strain the franchisee's financial resources.