Noodles & Company Franchise Costs $747K–$1.4M (+ 2024 Profits)

Noodles & Company, founded in 1995 by Aaron Kennedy, is a fast-casual restaurant headquartered in Broomfield, Colorado. Known for its globally inspired noodle dishes and pasta, the company offers a wide range of menu options that cater to various tastes and dietary needs, including vegetarian, vegan, and gluten-sensitive options.

Noodles & Company started franchising in 2003, expanding its reach across the United States. The franchise differentiates itself with a menu that blends American and international flavors, featuring dishes such as Wisconsin Mac & Cheese, Japanese Pan Noodles, and Penne Rosa.

Their model is centered on providing high-quality, fresh food quickly and in a welcoming environment. Noodles & Company is recognized for its commitment to community and sustainability, efforts which are reflected in its positive workplace recognition and dedication to diversity.

Type of Expenditure	Amount
Build-out Costs (Leasehold Improvements)	$490,000 – $891,000
Architectural & Other Design Fees	$59,000 – $132,000
Landlord Credits	$46,000 – $170,000
Kitchen Equipment	$127,000 – $218,000
Millwork & Furniture	$22,000 – $44,000
Computer Equipment	$30,000 – $56,000
Signage	$17,000 – $51,000
Permits & Licenses	$0 – $24,000
Supplies & Smallwares	$1,000 – $10,000
Opening Inventory	$6,000 – $10,000
Safe & Cash on Hand in Registers	$1,000 – $3,000
Utilities	$0 – $4,000
Pre-Opening Cash Occupancy Costs	$0 – $8,000
Training	$7,000 – $64,000
Grand Opening Marketing Program	$1,000 – $2,000
Additional Funds – 3 months	$0 – $46,000
Franchise Fee	$35,000
Total	$747,000 – $1,423,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

The initial franchise fee is $35,000, which is non-refundable and payable upon signing the franchise agreement.

Royalty Fee

The royalty fee is 5.5% of Net Sales, payable monthly.

Marketing/Advertising Fee

The marketing fee is 2% of Net Sales, also payable monthly.

Technology Fee

The technology fee is $250 per month.

Transfer Fees

The transfer fee is $5,000, payable upon the transfer of the franchise.

Renewal Fees

The renewal fee is $10,000 for a new 10-year term.

How to open

Opening a Noodles & Company franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Noodles & Company franchise.

1. Conduct Initial Research

• Thoroughly explore the Noodles & Company franchise opportunity by visiting their official franchising website to understand their business model, brand values, and the support they offer to franchisees.
• Review available resources and testimonials from existing franchisees to gauge their experiences and satisfaction levels.

2. Contact Franchise Development Team

• Reach out to the Noodles & Company franchise development team via their contact form or direct contact details provided on their franchising webpage.
• Express your interest in becoming a franchisee and request detailed franchise information, including the Franchise Disclosure Document (FDD).

3. Review Franchise Disclosure Document (FDD)

• Carefully read through the FDD provided by Noodles & Company. This document contains essential information about the franchise, including fees, obligations, and financial performance of existing franchises.
• It’s advisable to consult with a franchise attorney to help interpret complex legal and financial information.

4. Financial Assessment and Planning

• Evaluate your financial capability to meet the investment requirements outlined in the FDD. Initial investment costs may include franchise fees, real estate, construction, equipment, and other startup costs.
• Explore financing options. Noodles & Company may offer guidance on preferred lenders or financing methods, though they do not provide direct financing.

5. Attend Discovery Day

• Participate in a Discovery Day at Noodles & Company’s headquarters or a specified location. This visit allows potential franchisees to meet the corporate team, ask detailed questions, and gain a deeper understanding of the operational aspects of the franchise.

6. Site Selection and Approval

• Collaborate with the Noodles & Company real estate team to identify and secure an appropriate location for your franchise. They will assist in analyzing potential sites based on market research, demographic studies, and brand suitability.
• Obtain approval for your chosen site from Noodles & Company.

7. Sign Franchise Agreement

• Once your financial and site assessments are approved, you will sign the franchise agreement, formalizing your commitment to owning and operating a Noodles & Company franchise.
• Pay the initial franchise fee and other upfront costs as required.

8. Training and Preparation

• Undergo comprehensive training provided by Noodles & Company, which covers all aspects of running the franchise, including culinary training, customer service, and business management.
• This phase may also involve training for any staff you plan to hire.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.