What was the amount of loss carry forwards for Noodles & Company in 2023 (in thousands)?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
| Deferred tax assets | $ | 118,454 | $ 121,801 |
|---|---|---|---|
| Deferred tax liabilities | (58,573) | (71,383) | |
| Total deferred tax assets | 59,881 | 50,418 | |
| Valuation allowance | (60,157) | (50,673) | |
| Net deferred tax liabilities | $ | (276) $ | (255) |
Deferred income taxes arise because of the differences in the book and tax base
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the loss carry forwards for 2023 were $45,547 thousand. This figure represents the amount of deferred tax assets related to loss carry forwards that Noodles & Company had available at the end of the 2023 fiscal year. Loss carry forwards can be used to offset future taxable income, potentially reducing the company's tax liability in subsequent years.
For a prospective franchisee, understanding the company's financial health and tax strategies is crucial. Loss carry forwards can be a valuable asset for a company, as they can reduce future tax obligations and improve profitability. However, the ability to utilize these carry forwards may be subject to certain limitations and conditions, such as those imposed by Section 382 of the Internal Revenue Code, which can restrict their use in the event of an ownership change.
The document also indicates that Noodles & Company had net operating loss (NOL) carry forwards for federal income tax purposes of approximately $180.0 million as of January 2, 2024. Of this amount, $106.8 million is available to offset future taxable income through 2037, while $77.2 million can be carried forward indefinitely but can only offset 80% of future taxable income. These figures provide further insight into the company's tax position and potential future tax benefits.
It is important for potential franchisees to consult with financial and legal advisors to fully understand the implications of these tax-related items and how they may impact the overall financial performance of Noodles & Company and its franchisees. Reviewing the company's financial statements and understanding its tax strategies can help franchisees make informed decisions about their investment.