Does Noodles & Company require franchisees to purchase ingredients from only approved suppliers?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
The Noodles & Company restaurant franchise could not be offered efficiently or effectively without the inclusion of the ingredients as an essential and integral component of the System. You therefore are required to purchase all ingredients and products in accordance with the terms of Section 9 of the Franchise Agreement. Specifically, you are required to purchase exclusively from Approved and Designated Suppliers. As defined in the Franchise Agreement, a "Designated Supplier" is any supplier whom we authorize to manufacture or distribute Proprietary Products. Additionally, you agree to purchase from Approved Suppliers those ingredients, products and services we authorize now or in the future to be provided and or produced by Approved Suppliers, subject to your right to purchase from Alternative Approved Suppliers. An "Alternative Approved Supplier" is any supplier who has been proposed by you or by another franchisee and who has been approved by us to provide and/or produce ingredients, products and services in accordance with the terms of the Franchise Agreement. We reserve the right to designate any ingredient as a Proprietary Product*.* Products not designated as Proprietary Products are referred to as "Non-Proprietary Products."Designated and Approved Suppliers have the right to profit from the sale of products and ingredients. We do not act in any fiduciary capacity for you in our relationship with any Designated or Approved Suppliers; however, we do negotiate contracts for use by and binding upon all Franchise-owned and Company-owned Restaurants. None of our officers have an ownership interest in any of our Designated or Approved Suppliers.
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 purchase ingredients and products exclusively from approved and designated suppliers. A "Designated Supplier" is authorized to manufacture or distribute Proprietary Products, while "Approved Suppliers" provide other authorized ingredients, products, and services. Franchisees do have the option to propose "Alternative Approved Suppliers," subject to Noodles & Company's approval.
Noodles & Company maintains a list of approved brands and suppliers in its Operations Manual, which it may modify. Franchisees cannot reorder from suppliers once they are removed from the approved list. If a franchisee wants to use a non-approved brand or supplier, they must submit information and samples for Noodles & Company to evaluate, potentially incurring fees to cover the evaluation costs.
This requirement ensures that Noodles & Company restaurants maintain consistent quality and standards. While franchisees must adhere to the approved supplier list, they can propose alternative suppliers, giving them some flexibility. However, the approval process and potential costs associated with proposing new suppliers should be carefully considered. This system allows Noodles & Company to control product quality and protect its brand reputation, which is a common practice in franchising.