Noodles & Company Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$669,000 - $1,412,000
Franchise Fee
$25,000
Min Cash Required
$1,000
Total US Locations
463
Business Summary
Noodles & Company operates fast-casual restaurants specializing in the retail sale of noodle dishes, salads, soups, desserts, breads, beverages, and other menu items. Noodles & Company restaurants typically offer in-restaurant dining, patio seating, and delivery and carry-out services for lunch and dinner.
Corporate History
Noodles & Company, a Delaware corporation, was formed on December 19, 2002. However, Noodles & Company restaurants have been in operation since 1995. The company began offering Noodles & Company franchises in May 2003. Noodles & Company operates its principal place of business in Broomfield, CO and has no parent or predecessor companies.
Financial Overview
Investment Range
$669,000 - $1,412,000
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$35,000
Minimum Cash Required
$1,000
Royalty %
5%
Marketing %
2.25%
Equipment Costs (Low)
$593,000
Equipment Costs (High)
$1,170,000
Working Capital
$28,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Noodles & Company has incurred net losses for the past three fiscal years, with a significant net loss of $36.2 million in 2024. The company's cash and cash equivalents have decreased, and its long-term debt has increased to over $100 million in 2024. As of December 31, 2024, Noodles & Company reported a negative total stockholders' equity of $5.579 million. Additionally, the company maintains a substantial valuation allowance against its U.S. deferred tax assets, indicating uncertainty about its ability to generate sufficient future taxable income to realize these benefits. Despite these financial challenges, Noodles & Company was in compliance with all of its debt covenants as of December 31, 2024, and management does not believe its goodwill is impaired.
Financing Details
Noodles & Company does not offer any direct or indirect financing to franchisees. It also does not guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
463
Franchised Units
92
Corporate Units
371
Avg Square Footage
2,400
Franchising Since
2003
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Noodles & Company was involved in a lawsuit filed in Delaware in June 2013 and unsealed in March 2014. The complaint alleged that Noodles & Company violated the Delaware Abandoned Property Law by not reporting and delivering unclaimed gift card funds and violated the Delaware False Claims and Reporting Act by making false statements to conceal these obligations. This litigation was settled in August 2018. Noodles & Company paid $450,000 to the State of Delaware and $150,000 to the relator, and the action was dismissed without admission of liability or wrongdoing. Noodles & Company has no other litigation required to be disclosed.
Bankruptcy History
Noodles & Company has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Term
10 years
Renewal Conditions
To renew, Noodles & Company franchisees must provide written notice between 12 and 18 months before the current term ends. They must pay a renewal fee equal to one-half of the then-current franchise fee for a 10-year renewal term. Franchisees must also prove they have the right to occupy the premises for the entire renewal term, and Noodles & Company must approve the location. Any required renovations, modernizations, and improvements to the premises must be completed, and franchisees must comply with current training requirements. They must not have received prior default notices, substantially complied with the agreement, and not disparaged the Noodles & Company brand. Finally, franchisees must sign a general release and accept the then-current franchise agreement, which may have different terms.
Training & Support Program
Franchisor Assistance
Before opening, Noodles & Company assists with general site selection guidance, providing criteria and on-site evaluations. It provides layout requirements, space plans, and signage designs for the first three restaurants, along with construction orientation for the first unit. Noodles & Company specifies equipment, furniture, fixtures, and signs, and provides a list of approved suppliers. It also offers initial training for the franchisee, Operating Partner, and a limited number of general managers, and provides opening operational assistance for the first two restaurants. Franchisees also gain access to 'The Binder,' an app platform containing the electronic Operations Manual. Once open, Noodles & Company provides ongoing guidance on system improvements and changes, and regularly updates the Operations Manual with new standards and procedures. It makes reasonable efforts to ensure product availability from approved suppliers and administers marketing and advertising funds for brand development. Periodic and additional training programs are offered, and guidance for establishing certified training programs for franchisee personnel can be provided.
Initial Training Hours
300
Training Location
Central Support Office in Broomfield, Colorado, and certified training restaurants in Colorado and other states.
Ongoing Support
Noodles & Company provides ongoing guidance on its System, including improvements and changes, and periodically modifies the Operations Manual to reflect new standards, specifications, and operating procedures. It also recommends or requires minimum/maximum prices for products. Noodles & Company uses reasonable efforts to ensure Designated and Approved Suppliers sell products to franchisees. It administers marketing and advertising funds for the creation and development of creative materials and programs. Periodic and ongoing training programs are provided for franchisees, Operating Partners, and general managers, though franchisees are responsible for all related expenses. Additionally, Noodles & Company may offer guidance for establishing certified training programs for franchisee personnel.
Franchise Requirements
Ideal Candidate Profile
Noodles & Company seeks qualified multi-unit operators capable of developing and managing a minimum of three restaurants. The ideal candidate or their designated Operating Partner should demonstrate strong financial and management capabilities, be able to commit full-time to the day-to-day operations of their Noodles & Company restaurants, and continuously reside within the Development Area. They are expected to follow a development schedule and uphold operational standards across multiple units.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Absentee Allowed
Territory Type
Protected
Staffing Notes
Noodles & Company restaurants must always be managed by the franchisee, their Operating Partner, or a manager who has successfully completed the appropriate training programs. For franchisees operating multiple restaurants, a full-time general manager is required for each location, dedicating 100% of their working time to that specific restaurant. The collective Noodles & Company restaurants must be under the on-site supervision of the Operating Partner or other full-time area or district managers. Every shift must be covered by a suitably trained manager or shift supervisor.