What was the amount of compensation costs reversed by Noodles & Company in 2023 due to forfeitures?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
| 0.9 million | ||
|---|---|---|
| during 2024, 2023 and 2022, respectively. In 2023, the Company recorded a reversal of previously recognized compensation costs | ||
| due to forfeitures of $ | target performance |
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, in 2023, the company reversed previously recognized compensation costs due to forfeitures amounting to $0.9 million. This reversal was due to target performance measures not being met.
For a prospective franchisee, this information provides insight into Noodles & Company's financial management and how it handles compensation costs related to employee performance. The reversal suggests that the company adjusts its financial records when performance targets are not achieved, which can impact the overall financial reporting.
It is important to note that this reversal is specific to compensation costs and does not directly impact the franchisee's financial obligations or operations. However, understanding how Noodles & Company manages its finances can be beneficial for franchisees as it reflects the company's overall financial health and stability.