What is an 'Alternative Approved Supplier' for a Noodles & Company franchise?
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 proposed by a franchisee (either the current franchisee or another Noodles & Company franchisee) and subsequently approved by Noodles & Company to provide ingredients, products, and services. This approval must align with the terms outlined in the Franchise Agreement.
Noodles & Company retains the right to approve or disapprove any proposed supplier. The document indicates that having multiple suppliers in a market area can be disadvantageous to the system due to cost and service implications. When deciding whether to approve a proposed supplier, Noodles & Company may consider the effect that the approval may have on the ability of Noodles & Company and other Area Operators to obtain the lowest distribution costs and on the quality and uniformity of products offered system-wide. Noodles & Company may also determine that certain Non-Proprietary Products (e.g. beverages) must be limited to a designated brand or brands set by Noodles & Company. Noodles & Company may revoke its approval if the alternative supplier fails to meet their criteria.
As a condition of approval, Noodles & Company may require the supplier to agree in writing to several conditions, including providing free samples of Non-Proprietary Products upon request, complying with Noodles & Company's specifications for applicable Non-Proprietary Products, selling products bearing Noodles & Company's Marks only to franchisees under a trademark license agreement, providing duplicate purchase invoices, making products available to all Noodles & Company restaurants, complying with reasonable requests, and completing a Noodles & Company supplier packet including 3rd party audits.
Furthermore, the franchisee or the proposed supplier is responsible for covering all reasonably anticipated costs associated with reviewing the supplier's application. This includes current and future expenses related to inspecting, re-inspecting, and auditing the supplier's facilities, equipment, and food products, as well as any product testing costs incurred by Noodles & Company with third parties. These costs must be paid in advance.