What were the franchising royalties and fees, and other revenue for Noodles & Company in 2022 (in thousands)?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
aurants in 2023 and three in 2022. Seven franchise restaurants closed in 2024, three franchise restaurants closed in 2023 and one closed in 2022. In addition, there were six company-owned locations acquired by a franchisee in 2024 and 15 acquired by a franchisee in 2022.
Sublease Income
The Company records sublease income related to leases for which the Company remains obligated. The Company has entered into transactions to sell company-owned restaurants to franchisees. The lease agreements for those restaurants were assigned to the franchisee, but in some instances, the Company was not relieved of its primary obligations under the main lease, therefore these leases are treated as subleases. The lease income on these locations has been recorded in "Franchising royalties and fees, and other" and the offsetting lease expense has been recorded in "Restaurant impairments, closure costs and asset disposals" in the Consolidated Statement of Operations.
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the company records sublease income related to leases for which the company remains obligated. The lease income on these locations has been recorded in "Franchising royalties and fees, and other" in the Consolidated Statement of Operations.
In 2022, Noodles & Company recognized revenue of $0.1 million related to initial fees from franchisees that were included in the contract liability balance at the beginning of the year.
For a prospective franchisee, this indicates that a portion of the revenue reported under "Franchising royalties and fees, and other" includes sublease income from company-owned restaurants sold to franchisees where Noodles & Company remains obligated under the lease. It also shows that initial franchise fees are recognized over the term of the franchise agreement.