What is included in the definition of 'revenue' for a restaurant, as used in the Noodles & Company Franchise Agreement's definition of 'Competitive Business'?
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 the 2025 Noodles & Company Franchise Disclosure Document, the definition of 'revenue' for a restaurant, specifically when determining what constitutes a 'Competitive Business,' includes the aggregate amount of all sales of food, beverages, and other products sold in or by such restaurant, whether these sales are made for cash or credit.
However, this definition explicitly excludes certain items. It does not include any federal, state, or municipal sales or service taxes that are collected from customers and then paid to the appropriate taxing authorities. Additionally, the definition of revenue excludes the value of all coupons, promotions, discounts, and refunds that the restaurant may offer to its customers.
This definition is important because it helps to determine whether a business is considered a 'Competitive Business' under the franchise agreement. If a restaurant's sales of 'Specified Dishes' constitute more than 10% of its operating revenues (as defined above), it may be considered a competitive business, which could have implications for a Noodles & Company franchisee's ability to engage with that business.