Does Noodles & Company act in a fiduciary capacity for franchisees in its relationship with any Designated or Approved Suppliers?

According to Noodles & Company's 2025 Franchise Disclosure Document, Noodles & Company does not act in a fiduciary capacity for franchisees in its relationship with any Designated or Approved Suppliers. However, Noodles & Company negotiates contracts for use by, and binding upon, all Franchise-owned and Company-owned Restaurants. The FDD also states that none of Noodles & Company's officers have an ownership interest in any of their Designated or Approved Suppliers.

Noodles & Company requires franchisees to purchase ingredients and products exclusively from Approved and Designated Suppliers. A Designated Supplier is authorized to manufacture or distribute Proprietary Products, while Approved Suppliers provide other authorized ingredients, products, and services. Franchisees do have the option to propose Alternative Approved Suppliers, subject to Noodles & Company's approval.

While franchisees are required to purchase from specific suppliers, Noodles & Company attempts to negotiate purchase arrangements, including price terms, with third-party suppliers for the benefit of all Noodles & Company restaurants. This suggests that Noodles & Company leverages its collective buying power to secure favorable terms for its franchisees, even though it does not have a fiduciary duty to them in these supplier relationships. Franchisees are required to purchase IT support services directly from Noodles & Company.