If purchasing an existing company-operated Noodles & Company restaurant, how is the purchase price determined?
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 is not a fixed amount. Instead, it is determined on a restaurant-by-restaurant basis through negotiation. Several factors influence the final price. These include the value of the assets being acquired, the restaurant's location, the book value of the assets, and their fair market value.
This means that prospective Noodles & Company franchisees need to carefully evaluate each location they are considering purchasing. They should conduct thorough due diligence to assess the true value of the assets and the potential profitability of the restaurant. Understanding the factors that Noodles & Company considers in setting the purchase price can help franchisees negotiate effectively.
It's important to note that the purchase price is subject to negotiation, providing an opportunity for the franchisee to potentially lower the initial investment. However, this also introduces uncertainty, as the final price will depend on the franchisee's negotiation skills and the specific circumstances of the restaurant being acquired. This differs from the franchise fee, which is uniform for all Area Operators currently purchasing a franchise, except in specific cases like the sale of a Company-owned Restaurant, operation in a Non-Traditional Venue or joint venture.