factual

Which items in the Noodles & Company Disclosure Document relate to pre-opening purchases and leases?

Noodles_Company Franchise · 2025 FDD

Answer from 2025 FDD Document

You must lease or purchase a location approved by Noodles & Company and construct, remodel, alter and improve it to Noodles & Company's specifications.

Lease and purchase costs are not included in the figures in the Item 7 table except as discussed in Note 8 and listed in Pre-Opening Cash Occupancy Costs.

These estimates assume that the location will be a leased, unimproved, unfinished retail store-type unit.

If you purchase a location, lease a free-standing building or lease a space in a multi-story structure, your initial investment may be much greater.

    1. Permits and licenses include, for example, business licenses, tap fees and liquor licenses. (Building permits are included in the Total Build-out Costs.) For the restaurants included in the above table, total permits and licenses averaged $7,200 and ranged from $900 to $22,600. Permits and licenses can vary widely between locations. However, while Noodles & Company restaurants historically sold liquor they no longer do so, and liquor licenses are no longer required.
    1. Proprietary Products must be purchased from our Designated Suppliers. Other items must be purchased from an Approved Supplier or an Alternative Approved Supplier (see Item 8).
    1. In general, Noodles & Company negotiates the payment of its leases to coincide with the start of operations. However, in some cases it may be necessary to begin lease payments before opening in order to secure a particular location, or to accommodate the optimal timing of a new restaurant opening.

Before you open your Noodles & Company restaurant:

  1. We will provide Area Operators general guidance in selecting sites. (Area Development Agreement, Section 3; Franchise Agreement Section 3.01);

We will give you our site selection criteria for Noodles & Company restaurants and provide such on-site evaluation of proposed sites that we deem necessary or appropriate. You must submit to us, in accordance with procedures we establish from time to time, a complete "Site Package" containing all information that we reasonably require for each site for a Noodles & Company restaurant that you propose to develop and operate and that meets our then-current standard site selection criteria for Noodles & Company restaurants. Our Real Estate Site Approval Committee meets approximately every 4 weeks, and Area Operators are responsible for submitting their sites for approval at least one week before the meeting. You are responsible for finding proposed Restaurant sites and sending them to us for review with the required site-specific information, in a timely manner so that you can meet your development obligations.

No lease for an approved site may be entered into without our prior written consent, which we will not unreasonably withhold.

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 33–35)

What This Means (2025 FDD)

According to the 2025 Noodles & Company Franchise Disclosure Document, several items pertain to pre-opening purchases and leases. Item 7, which details the estimated initial investment, specifies that franchisees must either lease or purchase a location approved by Noodles & Company. The franchisee is also responsible for construction, remodeling, and improvements to meet Noodles & Company's standards. The document clarifies that lease and purchase costs are generally excluded from the initial investment figures, except for pre-opening cash occupancy costs. The FDD notes that the initial investment can be significantly higher if a franchisee purchases a location, leases a free-standing building, or leases space in a multi-story structure.

Item 7 also includes information about permits and licenses required to open a Noodles & Company restaurant. These include business licenses, tap fees, and liquor licenses, though the document notes that Noodles & Company no longer requires liquor licenses as they no longer sell liquor. The FDD states that proprietary products must be purchased from designated suppliers, while other items must be purchased from approved or alternative approved suppliers, as detailed in Item 8. Additionally, the document mentions that Noodles & Company often negotiates lease payments to align with the start of operations, but early lease payments may be necessary to secure a location or optimize the timing of the restaurant opening.

Item 11 outlines Noodles & Company's pre-opening obligations, including providing general guidance in selecting sites and offering site selection criteria. Franchisees are responsible for submitting a complete "Site Package" for each proposed location, containing all required information for Noodles & Company's review. The franchisor's Real Estate Site Approval Committee meets regularly to approve or reject sites, considering factors such as location, demographics, traffic patterns, and the presence of other food establishments. No lease can be entered into without Noodles & Company's prior written consent, which will not be unreasonably withheld.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.