What is the estimated range for opening inventory costs 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 |
| Architectural & Other Design Fees (4) | $47,000 | $116,000 | As Arranged | As Incurred, Subject to Negotiated Terms | Architects & Engineers |
| Landlord Credits (5) | $(78,000) | $(183,000) | As Arranged | Post - Construction | Landlord |
| Kitchen Equipment (5) | $150,000 | $241,000 | As Arranged | As Incurred, Subject to Negotiated Terms | Approved Suppliers |
| Millwork & Furniture (5) | $15,000 | $48,000 | As Arranged | As Incurred, Subject to Negotiated Terms | Approved Suppliers |
| Computer Equipment (5) | $58,000 | $60,000 | As Arranged | As Incurred, Subject to Negotiated Terms | Approved Suppliers |
| Signage (5) | $20,000 | $66,000 | As Arranged | As Incurred, Subject to Negotiated Terms | Approved Suppliers |
| Pre-Opening Costs & | |||||
| Additional Funds | |||||
| Permits & Licenses (6) | $1,000 | $23,000 | Cash | As Incurred, Subject to Negotiated Terms | Government Agencies |
| Supplies & Smallwares | $6,000 | $10,000 | As Arranged | As Incurred, Subject to Negotiated Terms | Approved Suppliers |
| Opening Inventory (7) | $6,000 | $10,000 | As Arranged | As Incurred, Subject to Negotiated Terms | Approved Suppliers |
| Safe & Cash on Hand in | $1,000 | $3,000 | Cash | At Opening | Operations |
| Registers | |||||
| Utilities | $1,000 | $18,000 | As Arranged | As Incurred, Subject to Negotiated Terms | Landlords |
| Pre-Opening Cash Occupancy Costs (8) | $— | $8,000 | As Arranged | As Incurred, Subject to Negotiated Terms | Landlords & Approved Suppliers |
| Training (9) | $21,000 | $64,000 | As Arranged | As Incurred, Subject to Negotiated Terms | Employees, Airlines, Hotels & Restaurants |
| Grand Opening Marketing Program (10) | $5,000 | $15,000 | As Arranged | As Incurred, Subject to Negotiated Terms | Approved Suppliers |
| Legal Expenses (11) | $— | $— | As Arranged | As Incurred, Subject to Negotiated Terms | Attorneys |
| Additional Funds – 3 months (12) | $— | $56,000 | As Arranged | As Incurred, Subject to Negotiated Terms | Employees & Approved Suppliers |
| Fee to Franchisor | |||||
| Franchise Fee | $35,000 | $35,000 | Cash | See Item 5 Franchise Agreement | Noodles & Company |
| Total Fee to Franchisor | $35,000 | $35,000 | |||
| Grand Total for Franchise- | $669,000 | $1,412,000 | |||
| owned Restaurants (13)(14) |
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 opening inventory ranges from $6,000 to $10,000. This cost covers the supplies and smallwares necessary to begin operations. These products must be purchased from Noodles & Company's approved suppliers.
This expense is part of the broader "Pre-Opening Costs & Additional Funds" category, which also includes expenses like permits and licenses, safe and cash on hand, utilities, pre-opening cash occupancy costs, training, and grand opening marketing. The amounts are estimates based on the costs incurred to open 10 recently opened company-owned restaurants in the trailing 12-month period ended December 31, 2024.
Prospective franchisees should consider this inventory cost as a necessary startup expense. It is important to maintain a good relationship with the approved suppliers to ensure a smooth and timely supply of inventory. Managing inventory effectively from the outset is crucial for controlling costs and ensuring that the restaurant is well-stocked to meet customer demand from day one. Franchisees should also note that these costs are subject to change and can vary based on the specific location and operational needs of the restaurant.