obligation

What aspects of the Noodles & Company location must meet Noodles & Company's requirements?

Noodles_Company Franchise · 2025 FDD

Answer from 2025 FDD Document

the manner in which those fees are paid is provided in Item 5.

    1. You must lease or purchase a location approved by Noodles & Company and construct, remodel, alter and improve it to Noodles & Company's specifications. Lease and purchase costs are not included in the figures in the Item 7 table except as discussed in Note 8 and listed in Pre-Opening Cash Occupancy Costs. These estimates assume that the location will be a leased, unimproved, unfinished retail store-type unit. If you purchase a location, lease a free-standing building or lease a space in a multi-story structure, your initial investment may be much greater. A typical Noodles & Company restaurant will be located in a suburban or urban area on a major thoroughfare or adjacent to or part of a retail shopping center. For the restaurants included in the above table, occupancy costs which are comprised of base rent, percentage rent, CAM and real estate taxes (determined in accordance with generally accepted accounting principles) averaged $9,600 per month and ranged from approximately $6,900 to $13,600 per month. You must perform or have performed any construction, remodeling or additions necessary to cause the premises to conform to applicable federal, state, county and city laws, ordinances, codes and rules and regulations governing food services businesses, and that meet Noodles & Company's requirements for the layout, design, construction, fixtures, equipment, installation and trade dress appearance of a Noodles & Company location. The cost of purchasing or leasing and developing a site will vary widely depending upon the market, location, design, configuration and condition of the premises, the condition and configuration of existing services and facilities, such as, for example, air conditioning, electrical and plumbing, the terms of your lease and the local real estate market.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)

What This Means (2025 FDD)

According to the 2025 Noodles & Company Franchise Disclosure Document, a franchisee must lease or purchase a location approved by Noodles & Company. The franchisee is then responsible for construction, remodeling, alterations, and improvements to meet Noodles & Company's specific requirements. These requirements encompass the layout, design, construction, fixtures, equipment, installation, and overall trade dress appearance of the Noodles & Company location. The location must also conform to all applicable federal, state, county, and city laws, ordinances, codes, and rules governing food service businesses.

The cost of purchasing or leasing and developing a site can vary significantly based on factors such as the market, location, design, configuration, and condition of the premises. The condition of existing services and facilities, like air conditioning, electrical, and plumbing, the terms of the lease, and the local real estate market also play a role in determining the overall cost. Construction costs include fees for the general contractor and subcontractors, as well as other expenses related to constructing leasehold improvements to meet Noodles & Company's standards.

Prospective Noodles & Company franchisees should be aware that construction costs can differ widely between sites due to factors such as the labor market, restaurant size, and configuration (e.g., end-cap, inline, or freestanding). Landlords may provide allowances or free rent periods for tenant improvements, but these allowances may not fully cover the total construction costs. Franchisees are also required to prepare and sell all menu items designated by Noodles & Company and provide all standard services. This may necessitate the purchase of special or additional equipment, fixtures, millwork, or furniture, which can add to the overall investment.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.