Does Noodles & Company receive rebates, allowances, or similar payments from suppliers based on purchases by Company-owned and franchised Restaurants?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
ted with them based on the purchasing power that we have established thus far.
We customarily receive rebates, allowances, and similar payments or concessions from suppliers based on purchases of products by our Company-owned and franchised Restaurants. We (and our affiliates) have the right to receive payments from suppliers on account of their actual and/or prospective dealings with you and other franchisees (and us) and to use these amounts for any purpose we deem appropriate (unless we agree otherwise with the supplier). According to our internal records, during our 2024 fiscal year, we received $34,846 from approved suppliers on account of their sales of products or services to our franchisees, which is less than 0.01% of our total consolidated revenue of $493,271,000. These amou
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 receive rebates, allowances, and similar payments from suppliers based on purchases made by both company-owned and franchised restaurants. These payments are based on the purchasing power that Noodles & Company has established with its suppliers.
Noodles & Company has the right to receive payments from suppliers due to their dealings with franchisees and the company itself. They can use these funds for any purpose they deem appropriate, unless they have a prior agreement with the supplier stating otherwise.
During the 2024 fiscal year, Noodles & Company received $34,846 from approved suppliers related to sales of products or services to franchisees. This amount represents less than 0.01% of Noodles & Company's total consolidated revenue, which was $493,271,000 for that year. These payments are typically calculated based on a per-case, per-gallon, or per-unit basis of the products ordered.
This arrangement benefits Noodles & Company directly, and while it may indirectly benefit franchisees through potentially lower negotiated prices, the FDD states that Noodles & Company is not obligated to use these funds to directly lower costs for franchisees. Prospective franchisees should consider this when evaluating the overall cost structure and potential profitability of a Noodles & Company franchise.