What was the non-cash stock-based compensation expense included in general and administrative expense for Noodles & Company in 2022?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
tock or a combination thereof, for certain newly hired employees. As of December 31, 2024, approximately 355,405 share-based awards were available to be granted under the Induceme
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, in 2022, the non-cash stock-based compensation expense included in general and administrative expense was $4.4 million. This expense represents the value of stock-based compensation granted to employees that does not involve a cash outlay by the company.
Stock-based compensation is a common way for companies to incentivize employees, aligning their interests with the company's performance. The expense is recognized over the service period of the awards, meaning the period during which the employee is required to work to earn the stock or options. For Noodles & Company, this expense is included within the general and administrative expenses, indicating it relates to the compensation of employees in those functions.
For a prospective franchisee, this information provides insight into Noodles & Company's overall financial management and compensation strategies. While it doesn't directly impact the franchisee's day-to-day operations, it reflects the company's approach to employee compensation and its impact on the company's financial statements. Understanding these aspects of the franchisor can help a franchisee assess the stability and long-term viability of the franchise system.