What is the estimated range for permits and licenses for a Noodles & Company franchise?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
OUR ESTIMATED INITIAL INVESTMENT (1)**
| 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) | #### NOTES |
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- The above table includes costs incurred to open 10 recently opened Companyowned restaurants in the trailing 12-month period ended December 31, 2024. These restaurants ranged in size from 2,000 to 3,500 square feet with an average of 2,400 square feet. The amounts included in the table represent the low and high costs for each major cost category of the initial investment, but do not represent an individual restaurant cost in total. Further, the amounts included in the table represent cost categories for restaurants that vary widely including structural type, geographical location and utilization of union labor.
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 permits and licenses ranges from $1,000 to $23,000. These costs are paid in cash as incurred, subject to negotiated terms, and are payable to government agencies. These permits and licenses include business licenses and tap fees. Building permits are included in the total build-out costs.
The FDD notes that historically, Noodles & Company restaurants sold liquor, requiring liquor licenses. However, they no longer do so, so liquor licenses are no longer required, which could reduce the overall cost of permits and licenses for a new franchise. The average cost for permits and licenses for the restaurants included in the above table was $7,200, with a range from $900 to $22,600. However, these costs can vary widely between locations.
Prospective franchisees should budget for the higher end of this range to account for potential variations based on their specific location and business circumstances. It is important to consult with local government agencies to understand the specific permit and license requirements in the area where the franchise will be located. Understanding these costs is a crucial part of the initial financial planning for opening a Noodles & Company franchise.