What items are specifically excluded from the 'Net Sales' calculation for Noodles & Company restaurants?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
- Net Sales is defined for this Statement as the aggregate amount of all sales of food, beverages and other products sold in or by a Noodles & Company restaurant during the entire 52-week reporting period ended December 31, 2024 whether for cash or credit, but excluding: (1) all federal, state or municipal sales or service taxes collected from customers and paid to the appropriate taxing authorities, (2) all coupons, promotions, discounts, refunds, employee discounts or other adjustments made by Noodles & Company restaurants, and (3) adjusted for temporarily closed restaurants. Net Sales may not be the same as Net Royalty Sales as the term is defined in the Franchise Agreement.
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 calculation of 'Net Sales' for the Item 19 financial performance representation excludes specific items. Net Sales is defined as the total revenue from all sales of food, beverages, and other products at a Noodles & Company restaurant during the 52-week reporting period ending December 31, 2024, whether those sales are for cash or credit.
However, this total excludes (1) all federal, state, or municipal sales or service taxes collected from customers and then paid to the appropriate taxing authorities. (2) all coupons, promotions, discounts, refunds, employee discounts, or other adjustments made by Noodles & Company restaurants. (3) adjustments for temporarily closed restaurants.
It is 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. Prospective franchisees should carefully review the Franchise Agreement to understand how 'Net Royalty Sales' is calculated, as this figure will be used to determine royalty payments to Noodles & Company.