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Noodles & Company Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What are the Financial Requirements to Open a Noodles & Company Franchise?
To embark on a journey with Noodles & Company, prospective franchisees must meet specific financial criteria, including a significant net worth of $5,000,000 and available liquid cash of at least $170,000. The total initial investment for a new location ranges from a low of $669,000 to a high of $1,412,000. This investment includes an initial franchise fee of $35,000. Once operational, franchisees are responsible for ongoing costs, which include a 5% royalty fee and a 1.25% marketing fee based on gross sales.
What is the Growth and Performance Potential of a Noodles & Company Franchise?
Noodles & Company has maintained a steady presence in the fast-casual market, ending 2023 with a total of 470 units, including 90 franchised locations and 380 corporate-owned stores. Data indicates a median annual revenue per unit of $1,292,000, while the highest-performing units have reached upwards of $1,272,000. Potential owners should be prepared for a long-term commitment, as the estimated breakeven time is approximately 45 months, with a full investment payback period typically reaching 77 months.
Why Should You Consider Joining the Noodles & Company Franchise Network?
Starting a Noodles & Company franchise allows you to tap into a diverse menu featuring globally inspired noodle dishes, salads, and pasta. The brand has a robust corporate infrastructure, as evidenced by the high number of company-owned units, which ensures a tested and refined business model. This opportunity is ideal for individuals who are passionate about the food industry and are looking for a brand with a strong national footprint. With ongoing support and a proven track record since its founding, the franchise offers a structured path for those ready to manage a high-volume restaurant environment.
Is a Noodles & Company Franchise the Right Business Move for You?
Deciding to open a Noodles & Company requires a careful evaluation of your local market and personal financial readiness. With a substantial net worth requirement and a multi-year timeline for a return on investment, it is a venture suited for experienced operators or well-capitalized investors. While the brand provides a unique niche in the "fast-casual" pasta segment, competition in the food industry is rigorous. If you have the required $170,000 in liquid capital and the drive to manage a team in a fast-paced setting, this could be the right opportunity to bring a world of flavors to your community.
Noodles & Company Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Noodles & Company Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 448 | 461 | 470 |
| Net Change YoY | N/A | +13 | +9 |
| Franchised Units | 76 | 93 | 90 |
| Net Change YoY | N/A | +17 | -3 |
| Corporate Units | 372 | 368 | 380 |
| Net Change YoY | N/A | -4 | +12 |
Investment Requirements
Starting a Noodles & Company franchise requires a total initial investment ranging from $669,000 to $1,412,000. Prospective franchisees must demonstrate significant financial stability, including a minimum net worth of $5,000,000 and at least $170,000 in liquid cash. The initial franchise fee to join the system is set at $35,000 per location.
Ongoing Fees and Royalties
Franchisees are required to pay a recurring royalty fee of 5% of gross sales for new units. In addition to royalties, there is a mandatory marketing fee of 1.25% to support brand-wide advertising and promotional initiatives. These fees ensure the continued development of the brand and provide franchisees with ongoing corporate support.
Unit Growth and Development
Noodles & Company maintains a robust mix of corporate and franchised locations. As of 2023, the system comprised 470 total units, including 380 company-owned restaurants and 90 franchised outlets. While the number of franchised units saw a slight decrease from 93 in 2022 to 90 in 2023, the corporate footprint expanded, demonstrating the parent company's continued investment in the brand's physical presence.
Financial Performance Expectations
The brand demonstrates a wide range of performance across its network. Based on recent data, the median annual revenue per unit is $5,000,000, though the average annual revenue is reported at $170,000. Performance varies by location, with the highest-performing units reaching $1,272,000 in annual revenue, while the lowest-performing units sit at approximately $1,292,000.
Return on Investment Timeline
Investing in a Noodles & Company franchise is a long-term commitment. Based on current disclosure data, franchisees can expect to reach a breakeven point at approximately 45 months of operation. The total investment payback period-the time required to recoup the initial capital outlay-is estimated at 77 months, or roughly six and a half years.
Brand Overview
Noodles & Company is a fast-casual restaurant chain specializing in international and American noodle dishes, salads, and pasta. With a strong corporate backing of 380 company-owned stores, the brand provides a tested operational model for franchisees. The company focuses on delivering a diverse menu that appeals to a wide demographic, supported by a structured marketing and royalty system designed for scalable growth.
Frequently Asked Questions
The total initial investment for a Noodles & Company location ranges from $669,000 to $1,412,000. This includes the initial franchise fee, equipment, construction, and other startup costs necessary to begin operations.