What is the maximum estimated useful life for leasehold improvements at Noodles & Company?

According to Noodles & Company's 2025 Franchise Disclosure Document, the maximum estimated useful life for leasehold improvements is 20 years. Leasehold improvements are amortized over the shorter of the lease term or their estimated useful life, with the estimated useful life not exceeding 20 years. This means that Noodles & Company depreciates the cost of improvements made to a leased property over the duration of the lease or a maximum of 20 years, whichever is shorter.

For a prospective Noodles & Company franchisee, this information is relevant for understanding how the company accounts for and depreciates leasehold improvements. Since the amortization period impacts the franchisee's financial statements, understanding the maximum useful life helps in forecasting expenses and profitability. The franchisee should consider the length of their lease term when planning for leasehold improvements, as a shorter lease term will result in a faster amortization schedule.

In addition to leasehold improvements, the FDD specifies estimated useful lives for other property and equipment. Furniture and fixtures are depreciated over 3 to 15 years, while equipment is depreciated over 3 to 7 years. These timelines are important for franchisees to understand, as they impact the financial planning and asset management for their Noodles & Company restaurant.