Who is responsible for paying the costs associated with reviewing and inspecting an Alternate Approved Supplier for a Noodles & Company franchise?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
You or the proposed distributor or supplier must 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 living 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 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, a franchisee or the proposed distributor/supplier is responsible for covering the costs associated with the review and inspection of an Alternate Approved Supplier. These costs must be paid in advance.
The costs include all reasonably anticipated expenses for reviewing the application of the proposed supplier. Additionally, the franchisee or supplier must cover all current and future reasonable costs and expenses related to inspecting, re-inspecting, and auditing the supplier's facilities, equipment, and food products. This also extends to all product testing costs that Noodles & Company pays to third parties during the approval process.
This requirement means that a Noodles & Company franchisee seeking approval for an alternative supplier must be prepared to invest potentially significant funds to cover these review and inspection expenses. This financial burden could deter franchisees from seeking alternative suppliers, even if they could offer better pricing or service. The advance payment requirement further emphasizes the financial commitment needed to pursue this option.