Is a Noodles & Company franchisee required to participate in market research programs?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
We may conduct market research to determine consumer trends and salability of new food products and services. You must participate in our market research programs by test marketing new food products and services in your Noodles & Company restaurant and providing us with timely reports and other relevant information regarding the market research if we ask you to do so. You must purchase a reasonable quantity of the test products and make a reasonable effort to sell them.
Source: Item 16 — RESTRICTION ON WHAT THE FRANCHISEE MAY SELL (FDD pages 62–63)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, franchisees are required to participate in market research programs. Noodles & Company may conduct market research to determine consumer trends and the salability of new food products and services. Franchisees must participate in these programs by test marketing new food products and services in their restaurants and providing timely reports and other relevant information if requested by Noodles & Company.
This participation includes purchasing a reasonable quantity of the test products and making a reasonable effort to sell them. This means that franchisees may need to invest in inventory and promotional efforts for products that are still in the testing phase, which could pose a financial risk if the products do not perform well.
The requirement to participate in market research programs ensures that Noodles & Company can gather real-world data on new offerings, but it also places an obligation on franchisees to allocate resources and effort to these tests. Prospective franchisees should consider the potential costs and time commitment associated with these market research activities.