For the Noodles & Company financial performance representation, how is 'Net Sales' defined?

According to the 2025 Noodles & Company Franchise Disclosure Document, 'Net Sales' within the financial performance representation is defined as the total income from all sales of food, beverages, and other products at a Noodles & Company restaurant during the 52-week reporting period ending December 31, 2024. This includes both cash and credit sales. However, there are specific exclusions from this total.

Specifically, the 'Net Sales' figure excludes all federal, state, or municipal sales or service taxes that the restaurant collects from customers and then remits to the appropriate taxing authorities. It also excludes any deductions related to coupons, promotions, discounts, refunds, employee discounts, or other similar adjustments made at the Noodles & Company restaurant level. The net sales are also adjusted for temporarily closed restaurants.

It's important to note that the 'Net Sales' figure used in the financial performance representation may differ from 'Net Royalty Sales' as defined in the Franchise Agreement. This means that the base used for calculating royalties owed to Noodles & Company might not be the same as the 'Net Sales' reported in Item 19. A prospective franchisee should clarify this distinction to fully understand their royalty obligations. Furthermore, the FDD emphasizes that the financial performance representation does not account for costs of sales, operating expenses, or other costs needed to determine net income or profit. Therefore, potential franchisees should conduct their own thorough investigation into all costs associated with operating a Noodles & Company restaurant.