What is the estimated range for pre-opening cash occupancy 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 pre-opening cash occupancy costs range from $0 to $8,000. These costs are paid as incurred, subject to negotiated terms, and are payable to landlords and approved suppliers.
Pre-opening cash occupancy costs represent expenses like rent and other occupancy-related fees that a franchisee might need to pay before the restaurant actually opens. The fact that the range starts at $0 suggests that in some cases, Noodles & Company franchisees may not have any pre-opening occupancy costs, possibly due to lease negotiations or other arrangements. However, it's important for prospective franchisees to budget up to $8,000 to cover these potential expenses.
It's worth noting that the FDD also mentions that for the restaurants included in the table, occupancy costs, including base rent, percentage rent, CAM, and real estate taxes, averaged between $6,900 and $13,600 per month. This figure represents ongoing monthly costs, not pre-opening costs, but it provides additional context about the potential occupancy-related expenses a franchisee can expect to encounter. A prospective franchisee should carefully review their lease agreement and consult with Noodles & Company to understand what pre-opening occupancy costs they might incur and how to manage these expenses effectively.