Does Noodles & Company currently have any franchisee purchasing or distribution cooperatives?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
Currently there are no franchisee purchasing or distribution cooperatives.
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, Noodles & Company does not currently have any franchisee purchasing or distribution cooperatives. This means that franchisees are not currently participating in any formal, collective buying groups to negotiate better prices or manage distribution.
Noodles & Company franchisees are required to purchase ingredients, goods, supplies, fixtures, equipment, and inventory from approved suppliers and distributors. While there are no franchisee-led cooperatives, Noodles & Company does attempt to negotiate purchase arrangements with third-party suppliers for the benefit of all restaurants, including those owned by franchisees. These negotiations can impact the prices franchisees pay for both Proprietary and Non-Proprietary Products.
Franchisees do have the option to propose alternative suppliers, but Noodles & Company retains the right to approve or disapprove these suppliers. The approval process involves submitting information, specifications, and samples, and may include inspections of the supplier's facilities. Noodles & Company may also impose conditions on the supplier, such as requiring them to comply with specifications, provide samples, and make products available to all Noodles & Company restaurants. The franchisee typically bears the costs associated with this approval process.
While franchisees don't have purchasing cooperatives, Noodles & Company does receive rebates, allowances, or similar payments from suppliers based on purchases made by both company-owned and franchised restaurants. In 2024, Noodles & Company received $34,846 from approved suppliers on account of their sales of products or services to franchisees, which is less than 0.01% of their total consolidated revenue of $493,271,000. These payments are used for purposes Noodles & Company deems appropriate, unless otherwise agreed with the supplier.