What was the average monthly occupancy cost for the Noodles & Company restaurants included in the table?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
jor 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
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the average monthly occupancy costs for the restaurants included in the Item 7 table was $9,600. These costs, determined by generally accepted accounting principles, include base rent, percentage rent, CAM (Common Area Maintenance), and real estate taxes.
For a prospective Noodles & Company franchisee, this figure provides a benchmark for estimating ongoing monthly expenses related to leasing a restaurant location. However, the FDD also notes that occupancy costs can vary significantly, ranging from approximately $6,900 to $13,600 per month. This range highlights the importance of carefully evaluating potential locations and negotiating lease terms.
Factors influencing occupancy costs include the specific location (urban, suburban), the size of the space, and local real estate market conditions. Franchisees should conduct thorough due diligence to understand the occupancy costs in their target market and factor these expenses into their financial projections. Understanding these costs is crucial for assessing the profitability and sustainability of a Noodles & Company franchise.