What costs are included in the expenses for inspecting an Alternate Approved Supplier's facilities for Noodles & Company?

According to Noodles & Company's 2025 Franchise Disclosure Document, if a franchisee wants to use an alternative supplier for Non-Proprietary Products, they or the proposed supplier must cover all of Noodles & Company's reasonably anticipated costs. These costs are associated with reviewing the supplier's application and all current and future reasonable expenses related to inspecting, re-inspecting, and auditing the supplier's facilities, equipment, and food products. Additionally, the franchisee or supplier is responsible for all product testing costs that Noodles & Company pays to third parties.

This means a prospective Noodles & Company franchisee needs to be prepared to potentially incur significant expenses if they wish to deviate from the suppliers already approved by Noodles & Company. These costs are in addition to the standard franchise fees and operating expenses. The franchisee will need to pay these costs in advance.

The FDD specifies that these costs include travel and lodging. This implies that Noodles & Company's representatives will physically visit the proposed supplier's facilities to conduct inspections and audits. The franchisee will be responsible for covering the expenses associated with these visits, including transportation, accommodation, and potentially meals for the inspectors. This requirement ensures that Noodles & Company maintains control over its supply chain and product quality, but it also places a financial burden on franchisees who seek alternative suppliers.