What are the eligibility requirements for Noodles & Company employees to participate in The Noodles & Company 401(k) Plan?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
or exercise of outstanding warrants were excluded from the calculation of diluted loss per share because the effect of their inclusion would have been anti-dilutive totaled 3,770,218, 3,458,622 and 2,402,238 for 2024, 2023 and 2022, respectively.
11. Employee Benefit Plans
Defined Contribution Plan
In October 2003, the Company adopted a defined contribution plan, The Noodles & Company 401(k) Plan (the "401(k) Plan"). Company employees aged 21 or older, are eligible to participate in the 401(k) Plan beginning on the first day of the calendar month following 30 days of employment. Under the provisions of the 401(k) Plan, the Company may, at its discretion, make contributions to the 401(k) Plan. Participants are 100% v
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, Noodles & Company employees who are at least 21 years old are eligible to participate in The Noodles & Company 401(k) Plan. Enrollment can begin on the first day of the calendar month following 30 days of employment.
The 401(k) plan is a defined contribution plan, meaning that the benefits at retirement depend on contributions made by both the employee and potentially the company, as well as the investment performance of those contributions. Participants are immediately 100% vested in their own contributions, meaning they have full ownership of those funds from the start.
Noodles & Company may, at its discretion, contribute to the 401(k) Plan. In 2019, the board of directors authorized matching contributions equal to 25% of the first 4% of compensation that is deferred by the participant. For each of the fiscal years 2024, 2023 and 2022, Noodles & Company recognized matching contribution expenses of $0.4 million.
For a prospective franchisee, this indicates that Noodles & Company offers a retirement savings plan to its employees, which can be a factor in attracting and retaining staff. The matching contribution, while discretionary, can serve as an incentive for employees to participate in the plan and save for retirement. Franchisees should be aware of these potential costs and benefits when considering their overall compensation and benefits strategy for their employees.