What is the median EBITDA of company-owned Noodles & Company restaurants?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
card processing fees, bank charges, restaurant marketing, leased equipment and licenses, utilities, insurance and other miscellaneous fixed expenses.
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- Restaurant EBITDA means restaurant contribution to profit before interest expense, income taxes, depreciation and amortization. Calculation of Restaurant EBITDA for this Statement excludes the 5.0% Royalty Fee, which these restaurants are not charged.
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- The median EBITDA of company-owned restaurants is $158,332.
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- Because the Noodles & Company restaurants whose results appear above are Company-operated restaurants, they paid no royalties. You must consider your restaurant's required Royalty payment (currently 5.0% of Net Royalty Sales) as part of its expected operating expenses. The annual Royalty Fee your restaurant would have been required to pay had it achieved the average Net Sales level reflected in the table above showing a Summary Profit and Loss Statement is identified in the table above entitled "Annual Franchise Expense Not Encompassed in Table Above."
This Statement consists of the averages and medians of 380 Company-owned restaurants open as Company restaurants during the 52-week period ended December 31, 2024 and excludes those restaurants that the Company closed in 2024. This Statement does not include royalties, which a franchisee would have to pay to us, interest on any f
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 84–89)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the median EBITDA (earnings before interest, taxes, depreciation, and amortization) for company-owned restaurants was $158,332 for the 52-week period ending December 31, 2024. It's important to note that this calculation of Restaurant EBITDA excludes the 5.0% Royalty Fee that franchisees would typically be charged. The data is derived from 380 company-owned restaurants that were open during this period, excluding those that closed in 2024.
For a prospective Noodles & Company franchisee, this figure provides a benchmark for the potential profitability of a restaurant location. However, franchisees must factor in the 5.0% royalty fee, which is not included in the company-owned restaurant EBITDA. This royalty fee would be an additional expense that would impact the franchisee's bottom line. The FDD also specifies that the financial performance representation does not reflect the costs of sales, operating expenses, or other costs that must be deducted to obtain net income or profit.
It is crucial for potential franchisees to understand that their individual results may differ, and there is no guarantee they will achieve the same level of EBITDA. The FDD encourages prospective franchisees to conduct their own independent investigation of costs and expenses, and to consider speaking with current or former franchisees to gather more information. The document also states that written substantiation of the information used in preparing this financial performance representation will be made available upon reasonable request.
Furthermore, the Item 19 notes that some restaurants have earned this amount, but individual results may differ, and there is no assurance of earning as much. This disclosure serves as a reminder that while the median EBITDA provides a useful data point, it should not be the sole basis for making a decision about investing in a Noodles & Company franchise. Due diligence and careful financial planning are essential to assess the potential risks and rewards.