What gains offset the Noodles & Company restaurant closure costs in 2024 and 2023?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
two restaurants and a writedown of its lease related assets on four restaurants. In 2022, the Company impaired the fixed assets on four restaurants and the lease related assets on two restaurants. All periods include ongoing equipment costs for restaurants previously impaired.
Restaurant Closures
Closure costs during 2024, 2023 and 2022 pertain to ongoing costs of restaurants that closed in previous years, as well as costs related to the closure of thirteen, six, and five restaurants, respectively. These closure costs were offset by gains of $0.6 million in 20
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, restaurant closure costs were offset by specific gains in 2024 and 2023. In 2024, Noodles & Company saw gains of $0.6 million, while in 2023, the gains amounted to $0.2 million. These gains resulted from adjustments to liabilities as lease terminations occurred.
Closure costs for Noodles & Company can encompass various expenses, including fees paid to real estate advisors and brokers for lease terminations. They also include charges resulting from final adjustments to liabilities as lease terminations are finalized. These costs are directly related to restaurants that closed in previous years, as well as costs associated with the closure of thirteen restaurants in 2024, six restaurants in 2023, and five restaurants in 2022.
For a prospective Noodles & Company franchisee, understanding these offsetting gains and the nature of closure costs is crucial. It provides insight into how the company manages and mitigates losses associated with underperforming or closed locations. This information can be valuable in assessing the financial stability and risk management strategies of Noodles & Company.