Does Noodles & Company offer direct or indirect financing to franchisees?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
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- These estimates also do not take into account the finance charges, interest and related costs you may incur if any portion of your initial investment is debt financed.
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- You should review these figures carefully with a business advisor before making any decision to purchase the franchise. We do not offer any financing directly or indirectly for any part of the initial investment.
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- If you are purchasing an existing company-operated restaurant, the estimated initial investment (excluding the purchase price) will be lower than the applicable estimated initial investment detailed above since there will be no costs associated with initial building and site improvement and equipment and signage. You will, however, likely incur costs for business licenses, utility deposits, insurance, and, depending on the condition of the restaurant and the equipment that you purchase, you may incur additional costs in connection with, among other things, repairs to the restaurant. These costs will vary by city and by restaurant.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, Noodles & Company does not offer direct or indirect financing to franchisees. This is explicitly stated in Item 7 of the FDD, which also refers to Item 10 for further information. This means that prospective franchisees must secure their own funding through third-party sources such as banks, credit unions, or private investors.
This lack of financing from Noodles & Company places the onus on the franchisee to manage the financial aspects of opening a franchise. Franchisees need to have a solid financial plan and be prepared to meet all financial obligations independently. The estimated initial investment for a Noodles & Company franchise ranges from $669,000 to $1,412,000 for franchise-owned restaurants, encompassing expenses such as leasehold improvements, architectural fees, kitchen equipment, and the franchise fee.
Prospective franchisees should carefully consider this aspect and explore all available financing options. They should also review the initial investment figures with a business advisor, as recommended by Noodles & Company, to ensure they are fully prepared for the financial commitments involved. Understanding that finance charges, interest, and related costs incurred if any portion of the initial investment is debt financed are not included in the estimates is also crucial for financial planning.