What factors influence the purchase price of an existing company-operated Noodles & Company restaurant?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are purchasing an existing company-operated restaurant the amount of the purchase price will vary by restaurant based on a wide range of factors, including the assets being acquired, their location, their book value, their fair market value and other factors. The purchase price will be separately negotiated for each restaurant.
Source: Item 5 — INITIAL FEES (FDD page 18)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the purchase price for an existing company-operated restaurant varies depending on several factors. These factors include the assets being acquired, the location of the restaurant, the book value of the assets, their fair market value, and other considerations that Noodles & Company deems relevant. The purchase price is negotiated separately for each restaurant.
This means that the cost to buy an existing Noodles & Company location is not fixed and can fluctuate significantly. Prospective franchisees need to carefully evaluate each location and its assets to determine if the negotiated purchase price is reasonable. Factors such as the condition of equipment, the remaining lease term, and the restaurant's performance history can all play a role in determining fair market value.
It is important for potential Noodles & Company franchisees to conduct thorough due diligence and possibly seek professional advice when considering the purchase of an existing restaurant. Understanding the factors that influence the purchase price and negotiating effectively can help ensure a sound investment. Given that the purchase price is subject to negotiation, there is an opportunity for franchisees to potentially secure a more favorable deal based on their assessment of the restaurant's value and condition.