Under what circumstances can Noodles & Company revoke approval of an alternative supplier?

According to the 2025 Noodles & Company Franchise Disclosure Document, Noodles & Company may revoke approval of an alternative supplier if the supplier fails to continue to meet any of Noodles & Company's criteria. This means that even after a supplier is approved as an "Alternative Approved Supplier," its approval is not permanent and is contingent on maintaining the standards and requirements set by Noodles & Company.

This conditionality places a significant responsibility on both the franchisee and the alternative supplier. The franchisee must ensure that the alternative supplier consistently meets Noodles & Company's criteria to avoid disruption in supply. The alternative supplier must also be prepared to adapt and maintain compliance with Noodles & Company's evolving standards. This ongoing compliance is crucial because the revocation of approval can impact the franchisee's ability to source products, potentially affecting their operations and profitability.

Noodles & Company also retains the right to impose obligations on suppliers, which may be incorporated into a written agreement. These obligations can include providing free samples, complying with specifications for Non-Proprietary Products, selling products bearing Noodles & Company's Marks only to franchisees under a trademark license agreement, providing duplicate purchase invoices, making products available to all Noodles & Company restaurants, complying with reasonable requests, and completing a supplier packet including 3rd party audits. Failure to adhere to these obligations could also lead to the revocation of approval.

Prospective franchisees should carefully consider the implications of these requirements and the potential for approval revocation when evaluating alternative suppliers. It is important to have a clear understanding of Noodles & Company's criteria and to ensure that any proposed alternative supplier is capable of consistently meeting those standards. Maintaining open communication with Noodles & Company regarding supplier performance and compliance is also advisable to mitigate the risk of approval revocation.