When calculating restaurant revenue for the purposes of competitive activity restrictions, what items are excluded from the aggregate sales amount for a Noodles & Company franchise?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenue of a restaurant, as used in this definition means the aggregate amount of all sales of food, beverages and other products sold in or by such restaurant, whether for cash or credit, but excluding all federal, state or municipal sales or service taxes collected from customers and paid to the appropriate taxing authorities, all coupons, promotions, discounts and refunds.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, when determining restaurant revenue for competitive activity restrictions, certain items are excluded from the aggregate sales amount. The document specifies that revenue means the total sales of food, beverages, and other products sold by the restaurant, whether paid for with cash or credit.
However, the following items are specifically excluded from this aggregate amount: all federal, state, or municipal sales or service taxes collected from customers and then paid to the appropriate taxing authorities, all coupons, promotions, discounts, and refunds.
This definition is important for franchisees because it affects how Noodles & Company determines if a franchisee is engaging in a "Competitive Business," which could be a violation of the franchise agreement. By excluding these items, Noodles & Company aims to get a clearer picture of the actual revenue generated by the restaurant's core sales, rather than including amounts that are passed through to other entities or represent reductions in price.