Under what conditions must a Noodles & Company franchisee participate in a special promotion?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
rams and developing, subject to our approval, promotional materials for use by the members in the Cooperative;
- (d) no marketing or promotional plans or materials may be used by a Cooperative or furnished to its members without prior approval by us pursuant to Section 10.05(f) below;
- (e) you and each other member of the Cooperative shall contribute to the Cooperative, using a collection structure selected and established by us, the amount determined in accordance with the Cooperative's by-laws. Any Noodles & Company Company-owned Restaurant located in such designated local or regional (or national if applicable) area(s) will contribute to the Cooperative on the same basis. Contributions to such local and/or regional or national marketing cooperatives are applied towards the marketing expenditures required by Section 10.02; however, if we provide you and your Cooperative 30 days' notice of a special promotion, including any regional promotions, you must participate in such promotion and pay to us any special promotion marketing fees assessed in connection therewith, beginning on the effective date of such notice and continuing until such special promotion is concluded. Any such special promotion marketing fees shall be in addition to, and not applied towards, the aggregate maximum marketing expenditure required by Section 10.01 and 10.02;
- (f) all marketing and promotion by you and the Cooperatives shall be approved by us in writing prior to implementation, shall be conducted in a manner that supports the brand, and shall conform to such standards and requirements as we may specify. You or the Cooperative shall submit written samples of all proposed marketing and promotional plans and materials to us for our approval (except with respect to prices to be charged) at least 30 days before their intended use, unless such plans and materials were prepared by us or have been approved by us within the previous six months.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, a franchisee must participate in special promotions if Noodles & Company provides 30 days' notice. This includes regional promotions. The franchisee is also responsible for paying any special promotion marketing fees assessed in connection with the promotion, starting from the effective date of the notice until the promotion concludes. These fees are in addition to the standard marketing expenditures required under Sections 10.01 and 10.02 of the agreement.
In addition to the above, Noodles & Company also mandates that Area Operators participate in price point promotions, special promotions, Multi-Area Marketing Programs, and product launches that the company establishes from time to time. The franchisee is responsible for covering the costs associated with this participation, provided that these promotions do not violate any applicable laws. However, the Area Operator must obtain prior written approval from Noodles & Company before implementing any such program that Noodles & Company has not specifically mandated or provided.
Furthermore, Noodles & Company requires full participation in all programs, public relations campaigns, prize contests, special offers, and other programs, whether national, regional, or local. This includes the introduction of new products, new franchises, or other marketing programs directed or approved by Noodles & Company. The franchisee is responsible for the costs associated with this participation and must comply with any minimum or maximum price restrictions, including the use of coupons, as promulgated by Noodles & Company, to the extent permitted by law. This ensures that all Noodles & Company locations maintain a consistent brand image and marketing strategy.
These requirements ensure that Noodles & Company can implement marketing strategies across its franchise network, maintaining brand consistency and driving sales. However, franchisees should be aware of the potential costs associated with these promotions and the need to obtain approval for any franchisee-initiated marketing efforts. Franchisees should also factor in these mandatory promotions and associated costs when evaluating the overall profitability of their Noodles & Company franchise.