What is included in the Occupancy Costs for a Noodles & Company restaurant?

According to the 2025 Noodles & Company Franchise Disclosure Document, occupancy costs for a Noodles & Company restaurant include several components related to the restaurant's location. These costs encompass the base rent, which is the fixed amount paid regularly for the use of the property. Additionally, occupancy costs include percentage rent, which is a variable rent amount based on a percentage of the restaurant's sales.

The occupancy costs also cover common area maintenance (CAM), which are expenses related to maintaining shared spaces such as parking lots, landscaping, and walkways. Real estate taxes, which are taxes levied on the property, are also part of the occupancy costs. Finally, the category includes other miscellaneous lease expenses, which can cover a variety of smaller costs associated with the lease agreement.

For a prospective Noodles & Company franchisee, understanding these occupancy costs is crucial for budgeting and financial planning. These costs can significantly impact the profitability of the restaurant, so it's important to carefully review the lease agreement and understand all the expenses that fall under occupancy costs. As shown in the Summary Profit & Loss Statement, the average occupancy cost is $128,839, representing 9.9% of net sales, while the median occupancy cost is $117,439.