Under what conditions might Noodles & Company consider reducing the royalty fee for a franchisee?

According to Noodles & Company's 2025 Franchise Disclosure Document, the standard royalty fee is 5% of Net Royalty Sales. However, Noodles & Company may, on occasion, consider reducing this royalty fee or offering development incentives under specific circumstances.

Noodles & Company may consider a reduced royalty fee or development incentive if a franchisee commits to developing a significant number of franchised restaurants. This suggests that Noodles & Company is willing to negotiate terms to encourage multi-unit development, which can benefit both the franchisee and franchisor through economies of scale and increased brand presence.

Additionally, a reduction in the royalty fee or a development incentive may be offered if a franchisee agrees to significantly accelerate historical development patterns. This implies that Noodles & Company is interested in faster expansion and may reward franchisees who can expedite the opening of new locations. Noodles & Company may also consider reducing the royalty fee if a franchisee agrees to develop franchised restaurants in a new territory or proposes to develop unique sites. This indicates that Noodles & Company is looking to expand into new markets and is willing to offer incentives to franchisees who are willing to take on the challenges of entering these new areas or developing non-traditional locations.