What occupancy costs are included in the average monthly occupancy costs for Noodles & Company restaurants?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
jor thoroughfare or adjacent to or part of a retail shopping center. For the restaurants included in the above table, occupancy costs which are comprised of base rent, percentage rent, CAM and real estate taxes (determined in accordance with generally accepted accounting principles) averaged $9,600
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the average monthly occupancy costs are comprised of several components. These include base rent, percentage rent, Common Area Maintenance (CAM) fees, and real estate taxes. These costs are determined in accordance with generally accepted accounting principles.
The FDD indicates that, for the restaurants included in the data, the average monthly occupancy costs were $9,600. The range for these costs varied from approximately $6,900 to $13,600 per month. This provides a prospective franchisee with an idea of the potential range of occupancy costs they might encounter.
It's important to note that these figures are averages and can vary significantly based on location, lease terms, and other factors. A prospective franchisee should carefully evaluate potential locations and negotiate lease terms to manage these costs effectively. Understanding the components of occupancy costs and their potential variability is crucial for financial planning and the overall success of a Noodles & Company franchise.