How many shares of Noodles & Company common stock were issued under the ESPP during 2024?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
net, which represents the value of the mutual funds, and $1.2 million and $1.2 million, respectively, were included in accrued expenses and other current liabilities and other long-term liabilities, which represents the carrying value of the liability for deferred compensation.
Employee Stock Purchase Plan
In 2013, the Company adopted an Employee Stock Purchase Plan (the "ESPP") under which eligible team members may voluntarily contribute up to 15% of their salaries, subject to limitations, to purchase common stock at a price equal to 85% of the fair market value of a share of the Company's common stock on the first day of each offering period or 85% of the fair market value of a share of the Company's common stock on the last day of each offering period, whichever amount is less. In general, all non-highly compensated employees who have been employed by the Company for at least 30 days prior to the offering period and who are regularly scheduled to work more than 20 hours per week and for more than five months in any calendar year, are eligible to participate in the ESPP which operates in-line with the Company's fiscal quarters. A total of 750,000 shares of common stock are available for issuance under the ESPP. The Company has issued a total of 489,989 shares under this plan, of which 151,403 shares were issued during 2024. A total of 260,011 shares remain available for future issuance. For 2024, in accordance with the guidance for accounting for stock compensation, the Company estimated the fair value of the stock purchase plan using the Black-Scholes multiple-option pricing model. The average a
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the company adopted an Employee Stock Purchase Plan (ESPP) in 2013. This plan allows eligible team members to voluntarily contribute up to 15% of their salaries, subject to certain limitations, to purchase common stock. The purchase price is set at 85% of the fair market value of Noodles & Company's common stock on either the first or last day of each offering period, whichever is lower. The ESPP operates in line with the company's fiscal quarters. As of the end of 2024, a total of 750,000 shares of common stock were available for issuance under the ESPP.
As of December 31, 2024, Noodles & Company had issued a total of 489,989 shares under the ESPP. Of these, 151,403 shares were issued during 2024. This leaves 260,011 shares available for future issuance under the plan.
In 2024, Noodles & Company estimated the fair value of the stock purchase plan using the Black-Scholes multiple-option pricing model. The average assumptions used in the model included a 4.41% risk-free interest rate, a 0.25-year expected life, expected volatility of 77.4%, and a zero percent dividend yield. The weighted average fair value per share at the grant date was $0.26. The company recognized $43,000 of compensation expense related to the ESPP in 2024.
For a prospective franchisee, the ESPP represents a potential benefit for employees of Noodles & Company. It allows them to purchase company stock at a discounted rate, aligning their interests with the company's success. The details of the plan, including eligibility requirements and contribution limits, are important for employees to understand to take full advantage of this benefit.