What actions are Noodles & Company franchisees required to take when using an alternate approved supplier?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
tribution of ingredients and products among Noodles & Company restaurants.
If you desire to procure authorized Non-Proprietary Products from a supplier other than one previously approved or designated by us, you must deliver written notice to our Purchasing Department of your desire to seek approval of the supplier, which notice must: (1) identify the name and address of the supplier; (2) contain the information requested by us or required to be provided pursuant to the Operations Manual (which may include reasonable financial, operational and economic information regarding its business) and (3) identify the authorized Non-Proprietary Products desired to be purchased from the supplier. We will, upon your request, furnish specifications for the Non-Proprietary Products if they are not contained in the Operations Manual. We will not be obligated to disclose the terms and conditions, including the pricing, to anyone as to Proprietary or Non-Proprietary Products. We may request that the proposed supplier furnish us, at no cost to us, product samples, specifications and other information as we may require. We or our representatives, including qualified third parties, will also be permitted to inspect the proposed supplier's facilities and establish economic terms, delivery, service and other requirements consistent with other distribution relationships for Noodles & Company restaurants.
We will use our good faith efforts to notify you of our decision within 120 days after our receipt of product samples from the proposed alternative supplier and other requested information, however, we will strive to complete our review within 60 days. We are not required to approve any supplier, and without limiting our right to approve or disapprove a supplier in our sole discretion, you acknowledge that it is generally disadvantageous to the system from a cost and service basis to have more than one supplier in any given market area and that, among the other factors we may consider in deciding whether to approve a proposed supplier, we may consider the effect that the approval may have on the ability of us and other Area Operators to obtain the lowest distribution costs and on the quality and uniformity of products offered system-wide. We may also determine that certain Non-Proprietary Products (e.g. beverages) must be limited to a designated brand or brands set by us. We may revoke our approval upon the alternate supplier's failure to continue to meet any of our criteria. If we approve the alternate supplier, the supplier must be designated an "Alternative Approved Supplier."
As an additional condition of its approval, we may require a supplier to agree in writing: (1) to provide, upon our request, free samples of any Non-Proprietary Product it intends to supply to you; (2) to faithfully comply with our specifications for applicable Non-Proprietary Products sold by it; (3) to sell any Non-Proprietary Product bearing our Marks only to our franchisees and only pursuant to a trademark license agreement in
form required by us; (4) to provide to us duplicate purchase invoices for our records and inspection purposes; (5) to make the products available to all of our Company-owned and Franchise-owned Restaurants;
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–32)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, if a franchisee wants to use a supplier that is not already approved, they must first notify Noodles & Company's Purchasing Department in writing. This notice must include the name and address of the proposed supplier, as well as any information requested by Noodles & Company or required by the Operations Manual, which may include financial, operational, and economic details about the supplier's business. The notice must also identify the specific Non-Proprietary Products the franchisee wishes to purchase from the supplier.
Noodles & Company may then request product samples, specifications, and other information from the proposed supplier at no cost to them. Noodles & Company or its representatives, including qualified third parties, are permitted to inspect the supplier's facilities and establish economic terms, delivery, service, and other requirements consistent with other distribution relationships for Noodles & Company restaurants.
The franchisee or the proposed supplier must pay in advance for all of Noodles & Company's reasonably anticipated costs in reviewing the supplier's application. This includes all current and future reasonable costs and expenses related to inspecting, re-inspecting, and auditing the supplier's facilities, equipment, and food products, as well as all product testing costs paid by Noodles & Company to third parties. Noodles & Company will use good faith efforts to notify the franchisee of their decision within 120 days after receiving product samples and other requested information, but they will strive to complete the review within 60 days. If approved, the supplier will be designated as an "Alternative Approved Supplier."