What does the Cost of Sales for a Noodles & Company restaurant include?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Cost of Sales includes the cost of food, beverages, paper and other products included in the preparation and sale of food, beverages and other products to customers. The cost of sales may vary considerably based on where a restaurant is located within the geographical area serviced by our approved suppliers and distributors and based on potential fluctuations in commodity costs.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 84–89)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the Cost of Sales for a Noodles & Company restaurant encompasses the expenses related to food, beverages, paper products, and other items used in preparing and selling food and beverage products to customers. This definition provides clarity for prospective franchisees, outlining exactly what expenses are categorized under this line item in their financial statements. Understanding this breakdown is crucial for managing expenses and assessing the profitability of the franchise.
The FDD also indicates that the Cost of Sales can vary significantly based on the restaurant's location and potential fluctuations in commodity costs. This variability highlights a key factor that franchisees must consider when projecting their potential earnings. Location impacts the cost of supplies due to differences in distribution networks and supplier pricing across different regions. Commodity costs, which are subject to market conditions, can also affect the overall Cost of Sales.
Given these variables, it is essential for potential Noodles & Company franchisees to conduct thorough market research and consider these factors when developing their business plan. Understanding the local supply chain and monitoring commodity market trends can help franchisees better manage their Cost of Sales and improve their restaurant's financial performance. The FDD emphasizes the importance of independent investigation into these costs, suggesting that prospective franchisees consult with current or former franchisees to gain deeper insights.