What was the reported goodwill for Noodles & Company as of December 31, 2024?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
| Gift card liability | $ | 2,000 | $ 2,222 |
|---|---|---|---|
| Occupancy related | 1,926 | 1,066 | |
| Utilities | 1,340 | 1,311 | |
| Current portion of finance lease liability | 1,976 | 2,337 | |
| Other restaurant expense accruals | 1,842 | 1,466 | |
| Other corporate expense accruals |
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the company's goodwill balance remained at $7.2 million as of December 31, 2024. Goodwill, in accounting terms, represents the excess of the purchase price over the fair value of identifiable net assets acquired in a business acquisition. It is an intangible asset that is not amortized but is tested for impairment at least annually.
The FDD indicates that Noodles & Company assesses goodwill for impairment at least annually, specifically on the first day of the company's fourth fiscal quarter. In 2024, 2023 and 2022, Noodles & Company performed a qualitative impairment assessment to determine whether it was more likely than not that the fair value of its reporting unit was less than its carrying amount.
For prospective franchisees, this information provides insight into how Noodles & Company manages and values its intangible assets. The fact that the goodwill balance remained consistent and that no impairment charges were recognized in recent years may suggest stability in the company's financial position. However, it is important for franchisees to understand the concept of goodwill and its potential impact on the company's overall financial health.