Noodles & Company Franchise AUV, Costs & Profits (2023)
With 462 locations across the US today of which most are company-owned, Noodles & Company is an interesting franchise opportunity you should seriously consider if you’re looking for a unique menu and profitable business in the restaurant industry.
Why? The average restaurant makes $1,030,000 in turnover per year yet (only) requires an initial investment of $900,000. What about profits though?
With a 8% EBITDA margin on average as per the latest FDD, Noodles & Company isn’t the most profitable franchise in the industry. So is this really a good investment?
In this article we’re looking at Noodles & Company and its Franchise Disclosure Document to find out how much it really costs and how much profits you can make with this business. Let’s dive in!
Key stats
| Franchise fee | $35,000 |
| Royalty fee | 5.0% |
| Marketing fee | 5.5% |
| Investment (mid-point) | $880,000 |
| Average sales | $1,244,000 |
| Sales to investment ratio | 1.4x |
| Payback period | 7 years |
| Minimum net worth | $1,000,000 |
| Minimum liquid capital | $350,000 |
Noodles & Company Franchise Business Plan
All the stats: startup costs, profits, breakeven, etc.
5-year financial projections built with the FDD
Excellent 4.8/5 based on 70 reviews
About Noodles & Company
Noodles & Company is a chain of fast-casual restaurants headquartered in Broomfield, Colorado. Its menu features international and American noodle dishes, pasta, salads, soups,baguettes, desserts, and customizable kids’ meals.
Noodles & Company was founded in 1995 by Aaron Kennedy in Broomfield, Colorado, after realizing a gap in restaurants that served noodle dishes. His idea worked, and for almost 30 years, Noodles & Company has offered quality foods made fresh, bringing families and communities together and opening hundreds of locations in Colorado and its neighborhoods.
The brand has continued with its mission to nourish and inspire every team member, guest and community it serves, bringing inspired flavors and guest-friendly operations into more states across the US. Noodles & Company began franchising in 2003 and currently has 93 franchises in the US and 369 company-owned locations.
How much does a Noodles & Company franchise cost?
You would need to invest on average $880,000 to open a Noodles & Company franchise.
Startup costs
Here’s the breakdown of startup costs as per the FDD:
| Type of Expenditure | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Build-out Costs | $656,000 | $946,000 |
| Pre-Opening Costs | $24,000 | $32,542 |
| Initial Marketing | $1,500 | $2,100 |
| Operating Costs | $10,800 | $17,000 |
| Total | $727,300 | $1,032,642 |
What is the franchise fee?
The initial franchise fee for a Noodles & Company franchise is $35,000
In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 5.0% of revenues, as well as a variable marketing fee of 5.5% of revenues.
What is the turnover of a Noodles & Company franchise?
On average, a Noodles & Company franchise generates $1,244,000 in revenue per year.
How profitable is a Noodles & Company franchise?
On average, a Noodles & Company franchise makes $88,000 in profits per year. This corresponds to a 8.5% EBITDA margin.
| Profit-and-loss | Amount ($) | As % of sales |
|---|---|---|
| Net Sales | $1,030,461 | 100% |
| COGS | $(251,620) | 24.4% |
| Gross Profit | $778,841 | 75.5% |
| Royalty | $(51,523) | 5.0% |
| Marketing | $(10,305) | 1.0% |
| Labor | $(332,821) | 32.3% |
| Controllable Expenses | $(123,588) | 12.0% |
| Ocupancy Cost | $(115,209) | 11.2% |
| Non-Controllable Expenses | $(57,866) | 5.6% |
| EBITDA | $87,529 | 8.5% |
Noodles & Company Franchise Business Plan
All the stats: startup costs, profits, breakeven, etc.
5-year financial projections built with the FDD
Excellent 4.8/5 based on 70 reviews
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