What was the total value of Noodles & Company's finance-related property and equipment in 2023?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
ded right-of-use asset impairment charges, which reduced the carrying value of operating lease assets to their respective estimated fair value by $1.7 million, $1.6 million, and $0.2 million in 2024, 2023 and 2022 respectively.
Supplemental balance sheet information related to leases is as follows (in thousands):
| | Classification | | | 20
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the value of their finance-related property and equipment in 2023 was $3,440. This figure represents the net value of property and equipment held under finance leases, which are essentially assets that Noodles & Company leases but are accounted for as if they were owned due to the terms of the lease agreement.
For a prospective franchisee, understanding this figure can provide insight into the capital structure and financial obligations of Noodles & Company. It indicates the extent to which the company relies on finance leases for its property and equipment needs. Finance leases are a common method for businesses to acquire assets without a large upfront cash outlay, but they do create long-term liabilities that must be managed.
The document also lists operating lease assets, which were significantly higher at $183,857 in 2023, indicating a greater reliance on traditional operating leases. The distinction between finance and operating leases is important because it affects how these assets and liabilities are reported on the balance sheet and how they impact the company's financial ratios. Franchisees may want to inquire about the specific types of property and equipment that are financed versus leased to better understand the company's asset management strategy.
Overall, the information provides a snapshot of Noodles & Company's financial strategy concerning property and equipment. While the finance-related property and equipment value is relatively small compared to operating leases, it still represents a financial obligation that prospective franchisees should be aware of when assessing the financial health and stability of the company.