What range of estimated useful lives does Noodles & Company assign to furniture and fixtures?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
| Leasehold improvements | Shorter of lease term or estimated useful life, not to exceed 20 years |
|---|---|
| Furniture and fixtures | 3 to 15 years |
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the estimated useful lives for furniture and fixtures are between 3 to 15 years. This means that Noodles & Company depreciates these assets over this period for accounting purposes. Depreciation is calculated using the straight-line method.
For a prospective franchisee, this is relevant because it affects the restaurant's financial statements and tax obligations. The cost of furniture and fixtures is not fully tax-deductible in the year of purchase. Instead, a portion of the cost is deducted each year over the asset's useful life. A longer useful life means a smaller annual depreciation expense, which can impact profitability in the short term but reduce tax liabilities over the long term.
It's important to note that these are estimated useful lives, and the actual lifespan of the furniture and fixtures may vary. Proper maintenance and care can extend the life of these assets, while neglect or heavy use can shorten it. Franchisees should factor in these considerations when budgeting for replacement and maintenance costs. Also, the franchisee must purchase or lease furniture and fixtures only from Noodles & Company's approved suppliers.