Does Noodles & Company reserve the right to designate any ingredient as a Proprietary Product?
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 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 reserve the right to designate any ingredient as a Proprietary Product. Franchisees are required to purchase all ingredients and products from Approved and Designated Suppliers, as outlined in Section 9 of the Franchise Agreement. A Designated Supplier is defined as any supplier authorized by Noodles & Company to manufacture or distribute Proprietary Products.
Noodles & Company also uses Approved Suppliers for ingredients, products, and services, but franchisees have the option to propose Alternative Approved Suppliers. Products not designated as Proprietary Products are referred to as "Non-Proprietary Products." Designated and Approved Suppliers are entitled to profit from the sale of these products and ingredients. Noodles & Company negotiates contracts with these suppliers for both Franchise-owned and Company-owned Restaurants but does not have any officers with ownership interest in any Designated or Approved Suppliers.
This means that as a Noodles & Company franchisee, you are obligated to purchase certain ingredients deemed "Proprietary Products" exclusively from suppliers designated by Noodles & Company. While you have some ability to suggest alternative suppliers for Non-Proprietary Products, Noodles & Company retains control over which ingredients are considered proprietary and where those ingredients must be sourced. This ensures uniformity and quality control across all Noodles & Company locations, but it also limits the franchisee's ability to negotiate prices or source ingredients independently.