What is the primary focus of the Noodles & Company CODM when making key operating decisions?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company's Chief Operating Decision Maker ("CODM") is the senior executive team that includes the Chief Executive Officer, the Chief Financial Officer and the Chief Operating Officer. The Company has one reportable operating segment. The reportable operating segment is comprised of one operating segment, which has been aggregated to a single operating segment in consideration of the aggregation criteria set forth in ASC 280. The one reportable segment derives its revenue from companyowned restaurants and franchise owned restaurants. No guest accounts for 10% or more of the Company's revenues. The Company's CODM uses income (loss) from operations to evaluate performance and make key operating decisions, such as deciding the rate at which we invest resources into the segment.
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, the company's Chief Operating Decision Maker (CODM), which includes the senior executive team (CEO, CFO, and COO), primarily focuses on income (loss) from operations when making key operating decisions.
Specifically, the CODM uses income (loss) from operations to evaluate the performance of the company's single reportable segment, which comprises both company-owned and franchise-owned restaurants. This evaluation directly influences decisions about how Noodles & Company invests its resources.
For a prospective franchisee, this means that the financial performance of existing Noodles & Company restaurants, both company-owned and franchised, is a critical factor in the franchisor's strategic decisions. Understanding how the CODM assesses financial performance can provide insights into the company's priorities and potential areas of investment or concern. This also highlights the importance of a franchisee's restaurant achieving strong operational income, as it contributes to the overall performance assessment that guides Noodles & Company's strategic direction.