According to the Noodles & Company Franchise Agreement, what is a 'Designated Supplier'?

The Noodles & Company restaurant franchise could not be offered efficiently or effectively without the inclusion of the ingredients as an essential and integral component of the System. You therefore are required to purchase all ingredients and products in accordance with the terms of Section 9 of the Franchise Agreement. Specifically, you are required to purchase exclusively from Approved and Designated Suppliers. As defined in the Franchise Agreement, a "Designated Supplier" is any supplier whom we authorize to manufacture or distribute Proprietary Products. Additionally, you agree to purchase from Approved Suppliers those ingredients, products and services we authorize now or in the future to be provided and or produced by Approved Suppliers, subject to your right to purchase from Alternative Approved Suppliers. An "Alternative Approved Supplier" is any supplier who has been proposed by you or by another franchisee and who has been approved by us to provide and/or produce ingredients, products and services in accordance with the terms of the Franchise Agreement. We reserve the right to designate any ingredient as a Proprietary Product*.* Products not designated as Proprietary Products are referred to as "Non-Proprietary Products."Designated and Approved Suppliers have the right to profit from the sale of products and ingredients. We do not act in any fiduciary capacity for you in our relationship with any Designated or Approved Suppliers; however, we do negotiate contracts for use by and binding upon all Franchise-owned and Company-owned Restaurants. None of our officers have an ownership interest in any of our Designated or Approved Suppliers.

Provided you and your affiliates are in compliance with the Franchise Agreement and all other agreements with us, we will cause Designated and Approved Suppliers to sell reasonable quantities of products and ingredients to you in accordance with the terms of Section 9 of the Franchise Agreement. We will use reasonable efforts to cause Designated Suppliers to sell to you reasonable quantities of Proprietary Products. All Proprietary Products, as well as all other ingredients and products, are sold at prices and on shipping terms established and changed by the supplier. Designated and Approved Suppliers may establish credit terms, if any, as deemed appropriate.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–32)