What expenses are categorized as 'Non-Controllable Expenses' for Noodles & Company restaurants?

According to the 2025 Noodles & Company Franchise Disclosure Document, 'Non-Controllable Expenses' include specific costs associated with operating a restaurant. These are defined as personal property taxes, credit card processing fees, bank charges, restaurant marketing, leased equipment and licenses, utilities, insurance, and other miscellaneous fixed expenses. These expenses are considered 'non-controllable' because they are generally less subject to direct management influence compared to other operational costs.

For a prospective Noodles & Company franchisee, understanding these non-controllable expenses is crucial for accurate financial planning. While a franchisee can manage costs like labor and supplies to some extent, non-controllable expenses are often dictated by external factors such as local tax rates, banking fees, and utility costs. These expenses can significantly impact the restaurant's profitability, regardless of sales volume or operational efficiency.

The FDD's Summary Profit & Loss Statement shows that, for company-owned restaurants, Non-Controllable Expenses averaged $79,642, representing 6.1% of Net Sales. The median Non-Controllable Expenses were $74,960, representing 50.8% of Net Sales. This information helps potential franchisees understand the typical range of these expenses based on the performance of company-owned restaurants. However, franchisees should conduct their own due diligence to estimate these costs accurately for their specific location, considering local rates and conditions.

It is important for prospective franchisees to carefully review all components of the Non-Controllable Expenses and how they might fluctuate based on location and economic conditions. Understanding these costs is essential for developing a realistic financial model and assessing the potential profitability of a Noodles & Company franchise.