What were the franchising royalties and fees, and other revenue for Noodles & Company in 2024 (in thousands)?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
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, revenue from franchise royalties and fees, and other sources is mentioned in the context of sublease income. The document states that sublease income is recorded related to leases for which Noodles & Company remains obligated. This situation arises when company-owned restaurants are sold to franchisees, and the lease agreements are assigned to the franchisee. However, in some cases, Noodles & Company is not relieved of its primary obligations under the main lease, leading to these leases being treated as subleases. The lease income from these subleases is recorded under "Franchising royalties and fees, and other" in the Consolidated Statement of Operations.
While the FDD mentions that sublease income is included under "Franchising royalties and fees, and other", it does not provide a specific revenue figure for this category for 2024. Instead, it focuses on the accounting treatment of sublease income and its placement within the financial statements. This means that a prospective franchisee cannot determine the exact amount of revenue Noodles & Company generated from franchising royalties and fees, and other sources in 2024 based solely on this information.
To gain a clearer understanding of the actual revenue generated from franchising royalties and fees, and other sources, a prospective franchisee should consider asking Noodles & Company for a detailed breakdown of this revenue stream during the due diligence process. This would provide valuable insight into the financial performance and contribution of franchising activities to the overall revenue of the company.