What is an 'Alternative Approved Supplier' according to Noodles & Company?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
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."
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, an 'Alternative Approved Supplier' is a supplier that a franchisee (or another franchisee) proposes and that Noodles & Company approves to provide ingredients, products, and services. This approval is contingent upon the supplier meeting the terms outlined in the Franchise Agreement.
If a franchisee wants to use a supplier not already approved by Noodles & Company for Non-Proprietary Products, they must provide written notice to the Purchasing Department. This notice must include the supplier's name and address, any information requested by Noodles & Company or required by the Operations Manual (including financial, operational, and economic details), and the specific Non-Proprietary Products the franchisee wants to purchase from that supplier. Noodles & Company can request product samples, specifications, and other information from the proposed supplier at no cost to them.
Noodles & Company, or their representatives, can inspect the supplier's facilities and set economic terms, delivery, service, and other requirements consistent with their other distribution relationships. Noodles & Company aims to notify the franchisee of their decision within 120 days after receiving product samples and other information, but they strive to complete the review within 60 days. While Noodles & Company will try to notify franchisees within 60 to 120 days, they are not required to approve any supplier. They may consider the effect of the approval on distribution costs and product quality and uniformity across the Noodles & Company system. They may also limit certain Non-Proprietary Products to specific brands. Approval can be revoked if the supplier fails to meet Noodles & Company's criteria.
As a condition of approval, Noodles & Company may require the supplier to agree in writing to provide free samples, comply with specifications, sell products bearing Noodles & Company's marks only to franchisees under a trademark license agreement, provide duplicate purchase invoices, make products available to all Noodles & Company restaurants, comply with reasonable requests, and complete a supplier packet including third-party audits. The franchisee or proposed supplier must cover all of Noodles & Company's costs for reviewing the application, inspecting the supplier's facilities, and testing products.