Noodles & Company

The technology fee of $1,000/month is significantly higher than the typical range of $200-500/month for fast casual restaurants. What specific technology systems and services are included in this fee, and how is it calculated or reviewed annually?

Why does Noodles & Company charge no advertising fund contribution (0.0%) when the typical range for fast casual restaurants is 1.5-3.0%? How are national and local marketing initiatives funded?

Unit closures increased from 1 in 2022 to 7 in 2024. Can you provide details on the reasons for these 7 closures in 2024 and whether any were related to performance issues, franchisee financial difficulties, or market conditions?

The system experienced negative net growth of -1.5% in the past year (down from 470 to 463 units). What is the franchisor's plan to return to positive growth, and what are the current challenges?

Your transfer fee of $3,500 is significantly below the typical range of $8,750-20,000 for this type of franchise. Does this low fee apply to all transfers, or are there circumstances where higher fees might apply?

The initial term of 20 years is longer than the typical 10-year term for fast casual restaurants. What is the rationale for this extended initial commitment, and what are the franchisee's options if circumstances change?

With a total potential term of 40 years (initial 20 plus two 10-year renewals), what specific performance or operational standards must a franchisee meet to qualify for renewal, and are there additional financial obligations for renewal beyond the $17,500 renewal fee?

You have 10 renewal conditions listed, which is above the typical 6-9 for this category. Can you detail all renewal conditions and clarify which ones are objective metrics versus subjective franchisor determinations?

The non-compete clause restricts franchisees for 2 years in any Designated Market Area where Noodles & Company operates, but with no mileage radius. How is the geographic scope of this restriction defined, and could it effectively prevent a former franchisee from opening a competing restaurant in their original market area?

Why is territory exclusive set to false when encroachment protection is true? What specific protections exist against the franchisor opening competing locations, and under what circumstances could the franchisor open a location near an existing franchisee?

The System Health score is 41/100, below the typical 50.0-75.0 range. What are the primary drivers of this low score, and what corrective actions is the franchisor taking?

Territory score is 60/100, below the typical 75.0-88.75 range. Are franchisees reporting concerns about territory definition, encroachment, or competitive saturation?

There is 1 litigation case on record with the franchisor named as defendant. Can you provide details on the nature of this case, outcome, and when it was resolved?

What are the specific 'franchisor-approved suppliers' for ingredients and proprietary products, and how are pricing and terms negotiated between franchisees and these suppliers?

The operational control clause requires purchases from franchisor-approved suppliers with proprietary products restricted to designated suppliers. What flexibility do franchisees have to source comparable products from other vendors if pricing or quality becomes an issue?

Can you explain the contract terms score of 70/100, which is above the typical 60.0-65.0 range? Are there particularly franchisor-favorable terms that contributed to this higher score?

Given the negative unit growth and higher-than-average closures, what profit margins are franchisees achieving, and how does franchisee profitability compare to your own corporate unit performance?

Of the franchisees currently in the system, how many have achieved profitability within their first 2-3 years of operation, and what is the average payback period on the initial franchise investment?