Does Noodles & Company include sales and use taxes in its reported revenue?

According to the 2025 Noodles & Company Franchise Disclosure Document, the company reports revenue net of sales and use taxes. This means that when Noodles & Company reports its revenue, it does not include the sales and use taxes collected from customers, which are then remitted to governmental taxing authorities.

For a prospective franchisee, this is a standard accounting practice. It ensures that the reported revenue reflects the actual income earned by Noodles & Company from its operations, without inflating the figures with taxes collected on behalf of the government. This provides a clearer picture of the company's financial performance and is consistent with generally accepted accounting principles.

This practice is beneficial for franchisees as it allows for a more accurate comparison of revenue figures when evaluating the financial performance of different franchise locations or when benchmarking against industry standards. It also simplifies financial analysis and forecasting, as franchisees do not need to account for the impact of varying sales tax rates when assessing revenue trends.