Hopefully the promotion of Michael Roeper to COO of Quiznos will help the franchisee’s profitability. Roeper owned several Quiznos units in Chicago from 2000-2006.
Ryan here is the question can this new COO do anything to repair the image of Quiznos to both customers and to their current and perspective franchisees. It seems to me that it would take a miracle of epoch proportions for the Quiznos franchise model to come out of this mess they have created for themselves especially because most of their franchisees have turned on them. What are your thoughts about Quiznos Ryan and do you think we could be witnessing the biggest implosion in franchise history?
I don't think it'll implode it a big dramatic meltdown. If they keep their hard sales efforts up they may even continue to grow. Franchisees are tough and they'll fight to keep their locations open despite no real financial benefit other than avoiding personal bankruptcy, especially single unit owners. I get contacted every few weeks by Quiznos franchisees looking for help, or some that are about to spend under $50k on the entire transaction and think they're getting an awesome deal. Some Quiznos franchisees are making money. Often they are mid-to-high traffic locations with virtually similar food alternatives. They're leases are also affordable (under 10% of gross sales with at least $450k in sales/year).