What was the pre-opening cost for Noodles & Company in 2022 (in thousands)?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
from operations to evaluate performance and make key operating decisions, such as deciding the rate at which we invest resources into the segment.
The following table presents selected financial information with respect to our single reportable segment regularly reviewed by our CODM for 2024, 2023 and 2022 (in thousands):
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Revenue: | ||||
| Restaurant revenue | $ 483,097 | $ | 492,648 | $ 498,359 |
| Franchising royalties and fees, and other | 10,174 | 10,757 | 11,121 | |
| Total segment revenue | 493,271 | 503,405 | 509,480 | |
| Less: | ||||
| Cost of sales | 123,692 | 124,102 | 137,859 | |
| Labor | 154,258 | 157,608 | 155,023 | |
| Occupancy | 46,366 | 45,925 | 45,213 | |
| Other restaurant operating costs | 95,032 | 91,559 | 91,220 | |
| General and administrative | 50,824 | 51,833 | 49,903 | |
| Depreciation and amortization | 29,066 | 26,792 | 23,268 | |
| Pre-opening | 1,543 | 2,215 | 1,662 | |
| Restaurant impairments, closure costs and asset disposals | 20,268 | 8,400 | 6,164 | |
| Total segment expenses | 521,049 | 508,434 | 510,312 | |
| Segment loss from operations | $ (27,778) $ | (5, |
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the pre-opening costs for 2022 were $1,662,000. This figure represents the expenses Noodles & Company incurred before opening a restaurant for business. These costs include rent, wages, benefits, travel for training and opening teams, food, beverage, and other restaurant operating costs.
For a prospective franchisee, understanding pre-opening costs is crucial for financial planning. These expenses are incurred before any revenue is generated, so having sufficient capital to cover them is essential. The FDD clarifies that these pre-opening costs are expensed as they are incurred.
It's important to note that this figure reflects Noodles & Company's expenses, not necessarily the specific costs a franchisee would incur when opening their own location. However, it can provide a useful benchmark for understanding the types and magnitude of expenses to anticipate during the pre-opening phase. Franchisees should carefully review Item 7 of the FDD for a detailed breakdown of estimated initial investment costs, which will include pre-opening expenses specific to their franchise location.