In 2024, how many Company-owned Noodles & Company restaurants were permanently closed?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
In 2024 we permanently closed 13 Company-owned restaurants (none of which had been open less than 12 months) and 7 Franchise-owned restaurants closed. There were also 6 franchise restaurants refranchised during the year.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 84–89)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, in 2024, 13 Company-owned restaurants were permanently closed. The document specifies that none of these restaurants had been open for less than 12 months, indicating that these closures were not due to immediate failures of newly opened locations. Additionally, 7 Franchise-owned restaurants were also closed during this period.
This information is relevant for prospective franchisees as it provides insight into the stability and performance of Noodles & Company restaurants. While closures are not uncommon in the restaurant industry, understanding the number and type of closures (Company-owned versus Franchise-owned) can help potential franchisees assess the risks associated with investing in a Noodles & Company franchise. The fact that the closed Company-owned restaurants were open for at least 12 months suggests that the closures were likely due to performance issues or strategic decisions rather than initial startup problems.
Furthermore, the FDD mentions that 6 franchise restaurants were refranchised during the year. Refranchising involves transferring ownership of existing franchise locations to new franchisees. This could be due to the current franchisee wanting to exit the business or the franchisor seeking new management for the location. This activity, along with the closure data, provides a more comprehensive view of the changes occurring within the Noodles & Company system and can help prospective franchisees evaluate the overall health and direction of the franchise.