Does Noodles & Company guarantee approval of any supplier proposed by a franchisee?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
(d) As a further condition of its approval, we may require a supplier to agree in writing: (i) to provide, from time to time upon our request, free samples of any Non-Proprietary Product it intends to supply to you; (ii) to faithfully comply with our specifications for applicable Non-Proprietary Products sold by it; (iii) to sell any Non-Proprietary Product bearing our Marks only to our franchisees and only pursuant to a trademark license agreement in form prescribed by us; (iv) to provide to us duplicate purchase invoices for our records and inspection purposes; (v) to make the products available to all of our company and franchised Restaurants; and (vi) to otherwise comply with our reasonable requests.
(e) You or the proposed distributor or supplier shall pay to us in advance all of our reasonably anticipated costs in reviewing the application of the Alternate Approved Supplier and all current and future reasonable costs and expenses, including travel and lodging costs, related to inspecting, re-inspecting and auditing the Alternate Approved Suppliers' facilities, equipment and food products, and all product testing costs paid by us to third parties.
Source: Item 23 — RECEIPT (FDD pages 99–350)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Noodles & Company outlines specific conditions and requirements for approving alternate suppliers, but does not guarantee approval.
According to Item 23, Noodles & Company may require a supplier to agree in writing to several conditions as a prerequisite for approval. These conditions include providing free samples of Non-Proprietary Products upon request, complying with Noodles & Company's specifications for these products, selling products bearing Noodles & Company's marks only to franchisees under a prescribed trademark license agreement, providing duplicate purchase invoices for inspection, making products available to all Noodles & Company restaurants (both company-owned and franchised), and complying with other reasonable requests.
Furthermore, the franchisee or the proposed supplier is responsible for covering all reasonably anticipated costs associated with reviewing the supplier's application. This includes 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 through third parties. These stipulations suggest that while franchisees can propose alternative suppliers, the approval process is rigorous and depends on the supplier meeting Noodles & Company's standards and the franchisee bearing the associated costs.