According to Noodles & Company's 2025 Franchise Disclosure Document, Item 8 outlines restrictions on approved suppliers, which impacts a franchisee's ability to negotiate favorable leasehold improvements. While Item 7 discusses leasehold improvements, it does not specify whether franchisees can use suppliers other than those approved by Noodles & Company. Item 8 states that franchisees must purchase all goods, supplies, fixtures, equipment, and inventory only from suppliers and distributors approved by Noodles & Company. This requirement extends both before and after the restaurant opens.

This restriction means a Noodles & Company franchisee cannot freely choose contractors or suppliers for construction, remodeling, or leasehold improvements. The franchisee must use only Noodles & Company-approved vendors, potentially limiting their ability to negotiate lower prices or better terms based on local market conditions or pre-existing relationships. While Item 7 mentions that construction costs can vary widely between sites, the franchisee's ability to control these costs is limited by the approved supplier list.

While Noodles & Company attempts to negotiate purchase arrangements with third-party suppliers for the benefit of all restaurants, this does not guarantee the lowest possible prices for leasehold improvements. The franchisee is still subject to the negotiated terms and the approved supplier's pricing, which may not always be as favorable as what the franchisee could obtain independently. Therefore, a prospective franchisee should inquire about the number of approved suppliers for construction and remodeling, the process for suggesting new suppliers, and the flexibility they have in negotiating terms with these suppliers to manage leasehold improvement costs effectively.