Who is responsible for paying Noodles & Company's costs related to reviewing an Alternate Approved Supplier?

According to Noodles & Company's 2025 Franchise Disclosure Document, the franchisee or the proposed distributor/supplier is responsible for covering the costs associated with reviewing an Alternate Approved Supplier. This includes all reasonably anticipated costs for the review application, as well as current and future expenses related to inspecting, re-inspecting, and auditing the supplier's facilities, equipment, and food products. Additionally, the franchisee or supplier must cover all product testing costs that Noodles & Company pays to third parties.

This means that if a franchisee wants to use a supplier not already approved by Noodles & Company for Non-Proprietary Products, they will incur the expenses of having that supplier vetted. These costs can include travel, lodging, inspections, audits, and product testing. The franchisee must pay these costs in advance to Noodles & Company.

This policy ensures that Noodles & Company maintains control over its supply chain and product quality, but it also places a financial burden on the franchisee. Before proposing an alternate supplier, a franchisee should carefully consider these potential costs and whether the benefits of using that supplier outweigh the expenses of the approval process. It is also important to note that Noodles & Company retains the right to disapprove any supplier at its sole discretion, regardless of whether the franchisee has paid for the review process.