What is the estimated low and high range for leasehold improvements for a Noodles & Company franchise?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount (2) | Method of Payment | When Due | To Whom Payment is to be Made | |
|---|---|---|---|---|---|
| Low | High | ||||
| Build-out Costs (3) | |||||
| Leasehold Improvements (4) | $381,000 | $822,000 | As Arranged | As Incurred, Subject to Negotiated Terms | Contractors & Government Agencies |
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 estimated initial investment for leasehold improvements ranges from $381,000 to $822,000. These costs are paid as arranged to contractors and government agencies as incurred, subject to negotiated terms. It is important to note that these figures are based on the costs incurred to open 10 recently opened company-owned restaurants in the trailing 12-month period ended December 31, 2024.
The FDD notes that construction costs can vary widely between sites due to factors such as the labor market, restaurant size, restaurant configuration (End Cap, Inline, or Freestanding), and the condition of existing services and facilities. The document also mentions that landlords often provide allowances or free rent periods for tenant improvements, which can affect the total net cost to construct a Noodles & Company restaurant. For the restaurants included in the above table, Noodles & Company received an average tenant improvement allowance and free rent totaling $120,000, and such allowances ranged from $79,000 to $184,000.
Prospective franchisees should carefully consider these factors and the potential impact of tenant improvement allowances when estimating their initial investment. Reviewing these figures with a business advisor is recommended before making any decision to purchase the franchise. These estimates do not take into account finance charges, interest, and related costs if any portion of the initial investment is debt financed.