What a Quiznos franchisee makes
As a follow up to our previous article regarding Quiznos and the importance of legal representation, the QuiznosSucks.com owner posted his (claimed) financial results from owning a Quiznos franchise:
Topic: How much a Quiznos earns
Posted by: XXXXXXX
Date/Time: in 2005I am a Quiznos franchisee. Here is a breakdown of how much a franchisee can potentially earn — or not earn.
The figures are not necessarily BAD, I guess I just wish someone gave me these hard figured BEFORE I bought one.
If a store earns $40,000 / month: 7% Royalty $ 2,800 1% Local Advertising $ 400 3% national advertising $ 1,200 20% Labor $ 8,000 29% Food $ 11,600 3% Paper $ 1,200 .3% Accounting/Payroll $ 300 10% Rent/CAM $ 4,000 2.75% Insurance / Misc. $ 1,100 5% repay SBA loan $ 2,000 4.5% misc bills (utilities, etc) $ 1,800 .5% Spoilage $ 200 1% Supplies $ 400 1% Promo Food $ 400 1% Comp Food $ 400 2.9% Credit Card Fee $ 1,160 .4% Coupons $ 160 .5% Food Waste $ 200 No one has any control over %. They are fixed and that is that. So if a store is lucky enough to earn $480,000 annual, the owner can expect to walk away with a profit of
9.4% = $45,120[edit by Ryan Knoll: I believe this should be 7.15% = $34,320 based on the numbers provided]. No one is going get rich off of that. Of course if an owner can get cheaper rent, and increase sales, it will be of great benefit.The average store seems to be about 1,500 - 1800 sq ft. and the going rate is $17.50 - $30.00 sq ft + $5.50 - $8.00 CAM.
That looks reasonable to me and should be considered by anyone buying an existing or new franchise. People often forget the expense of promos and coupons, credit card fees, insurance, and payroll expenses. The pretty picture the franchise sales rep paints for you often is the “best case” scenario.
Well, you might think, “That’s a 18% return on my investment of $250,000! I’ll take it!”. That’s not an accurate reflection of your actual return. Those results assume you are working at the franchise full-time and do not include your or your manager’s salary. So, if you think your year’s effort is fairly compensated at $45,000, then your real return on your investment is ZERO (actually it’s negative because you could be making 4-5% in bonds).
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Wow, that’s an awesome post. Thanks for the info!
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My pleasure! I don’t like seeing good hearted entrepreneurs get blindsided. It’d be worthwhile to enact a franchise law that forced franchisors to make available individual and consolidated financial results of all their franchisees including the bottom performing 20%.
the Franchise Pundit
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Couldn’t have said it better myself. Be careful and get EVERYTHING your told in writing. EVERYTHING!
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Where is your franchise located? I would guess the rent expense would vary substantially between say NYC and Dallas for example. And also you have spoliage and food waste as separate expenses..aren’t they the same thing?
Thanks.
Ed
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Like Ed said, The rent in Texas would be about $2,800 less per month. The SBA loan ($2,000) can be eliminated within two years if you are disciplined. The credit card fee is inflated because you can get cheaper rates if you have a lot of transactions.The labor cost can be managed because you don’t need all employees to be present at all times.By my estimates, efficient management can save you rent-$2,800+ Loan repayment $2,000+labor$4,000 (in texas). You can easily maken about $120,000 more per year if you are efficient. Lets remember THIS IS A BUSINESS.
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Ed and Pro Quiznos:::
The spoilage (food too old) and food waste (making bad sandwich, dropping food, ordering too much food, etc.) can rightfully be seperate categories of expenses.
The credit card fee listed of 2.9% is not outrageous and is dependent upon credit, transaction volume, etc and doesn’t include renting equipment.
As for employees, assuming you pay yourself $4,000/month, that leaves you $4,000 for other employment related costs. If you pay $9 + $1 payroll/other related expenses, that leave you 400 hours for the month. 400 for 30 days is 13.33 hours of help per day. So that is one person there with the owner. Of course, you can spend your $40,000 on another employee if you’d like to be gone.
Paying off the SBA loan at a rate of 5% per month ($2,000) will take you about 55 months with interest (4.5 years).
Under estimating the costs of running the business is fatal. Remember this is asuming sales of $40,000 which is definitely on the high-end for this business.
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OWNING A FRANCHISE IS NOT A WISE INVESTMENT UNLESS YOU PLAN ON WORKING IN THE BUSINESS AND MARKEETING YOUR STORE ON A DAILY BASIS.I HAVE PENETRATED MY MARKET TO GRASP THE MARKET SHARE BEING A $13,000 A WEEK STORE. SO AFTER TWO YEARS OF THIS, QUIZNOS HAS DECIDED TO PUT ANOTHER STORE ONE MILE FROM ME.QUIZNOS LLC IS VERY VERY GREEDY. YOU WILL HAVE TO FIGHT AND BE INNOVATIVE TO MAKE A PROFIT.
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Everytime a Quiznos goes under, people at HQ smile. Why another franchise fee is imminent, they have milked one owner and now onto milking another owner. Quiznos has got to be the worst investment. $13,000  a week, is a time 5 store in MN. The other stores barely do 7K.
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The guy or gal who said you can make $120,000 more per year is either an area director with Quiznos or some foolish person looking to get a response from people who read this board. I’ve opened up four Quiznos locations and there is absoultely no way an efficient operator could make any more than four or five thousand dollars above the level that the franchisee posted. Your fixed expenses prevent you from doing this. The only way to make $120.000 more is to not pay your rent, not pay your employees, not pay your utilities, and not pay your loan balance. By doing this, you could probably make a pretty good living. Also add in there to not pay your 4% advertising and 7% royalties.
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I am grateful to have read this posting, though naturally a bit disheartened. I had attended one of those informational sessions where the quiznos folks attempt to goad you into risking buckets of dough and left unimpressed. I’m intent upon starting something and the critics seem to concur that quiznos and it’s top competitor are the most sound choices for 2005 — but it seems that one has to open 4-6 of them to make a decent living. Has anyone had success with something else?
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#11 John
I invite you to post your question in the forum http://franchisepundit.com/forum . People don’t normally come back and look for new comments on blog posts.
Cheers.
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Even if the 2.9% fee for credit cards is accurate, not everyone is going to use their credit card for this type of transaction. Would it be illogical to say, half of those people would pay cash? If half the people did pay cash, that would bring back about $550 a month into the pot.
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#13 Joe:
Yes, that’s fair to say. To be safe, I’d go with 2.9% on the whole $40K because you’ll always have charge backs each month for the entire cost of the bill.
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We just closed our store in Pittsburgh. My family all worked in our store 7 days a week to keep labor down with not one cent taken from our business in a full year. We were losing hundreds of dollars per day! No support, lack of respect for franchise owners!! If you are thinking about it, please don’t. You will loose your family, your life and your life savings!
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I think this is an invaluable resourse for all aspiring franchisees out here. Kudos to all who shared their (sometimes painful) truths. My question is this: I have consistantly seen labor figures around 20%, does this include a manager? To be more specific in my question, if I want to be a hands-off owner (investor if you will) does that mean that I effectively make almost nothing if I hire a manager?
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“To be more specific in my question, if I want to be a hands-off owner (investor if you will) does that mean that I effectively make almost nothing if I hire a manager?”
In a word, yes-if you are lucky. Here is a great source of information if you’re thinking of opening a Quizno’s:
http://www.toastedsubs.info/phpBB2/index.php
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If you get the opportunity to open a Quiznos, PLEASE turn and run away as fast as you can. You will open (maybe) and if your one of the lucky ones, you may be making decent money. But just as certain as your sales are decent or above average, just know they will place a store in fairly close proximity. This will take away a fair chunk of your business. I began paying myself a little, then it grew. I then began taking a steady $500.00 a week. A new store opened up right down the highway where approx. 30% of my business came from. Since the opening of this store last summer, I have been unable to draw a paycheck. I am a single mom of three children and have resorted to living off my credit cards just so there may be enough to pay my Quiznos utilities. Corporate is horrible to deal with and never thinks of the franchisee. They are to busy figuring out how to inflate their prices even more so that they can suck the life out of us. I know a lot of owners…a lot….and there is not a single one of them that is making money. Oh yes, the new store that opened, they can’t make it either and it has already been sold after 6 months. Another thing that HQ does that is deceitful is that they make us figure our percentages on Net 2. So when I go to pay these food bills, I pay them with my net 3 (the actual money I rec.) not the net 2. If I have a daily amount of $100.00 in coupons that is $700 a week I do not have to pay bills. So why figure Percentages on Net 2. I don’t think I can pay my food bill with all of the ridiculous coupons they make us accept. Many buy one get one free after they promised us franchisees that they would not do that anymore. HQ are liars, cheats and deceptive criminals who don’t deserve to be in business.
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does anybody have at least a success story to tel? i am interested in buying one in an upscale area. business seems profitable from what i ve seen and
i have talked to the owner, seen numbers. i would just like to hear from somebody else who has had a positive experience. thanks!
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Ann, Call Quizno’s they will be HAPPY to tell you that you are doing the right thing. How stupid are you? Did you not read the posts?
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Does anyone know how a Subway franchise would compair as far as profitablity goes?
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I agree with Ryan on this…Great breakdown and very realistic…good job!!
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HATS OFF!!!!!!! EXCELLENT WORK DONE THIS IS GREAT EYE OPENER .IT IS A
FACT ANYWAHERE IN THE WORLD THE FRANCHISOR WALKS AWAY WITH THE CREAM
AND FRANSHISEE IS LEFT AWAY TO LICK HIS WOUNDS.
GOOD WORK DONE CONGRATULATIONS
BUT NO NATIONAL DAILY WILL HIGHTLIGHT THESE FACTS?
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here is a story in clearwater florida a new store open in 09/2005 it was barely paying it,s bills $8k to $10k per week not even 6 months later a another store opened and now they are both at about 7k per week
the new pastrami sub is great but the food and paper cost on a lage is about 42% at their recommeded price for tier A pricing
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#24 got a url hyperlink to the story or is this through personal knowledge?
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Hats off to post #18. If anyone wants to hear the truth…….that was it. They really do not care about us. The simple fact that all the percentages that they give you are on the acatual sale amount….not the amount you collected should tell you that there is something very wrong with corporate…..they are not telling the truth. I have had mo store about a year and they told me that they would not sell any other stores in my market……sad part is that they sold me the market after they sold it to someone else first. The are not in the food business anymore, they are in the business of selling locations. The poor woman that won the store is going broke before she is open. The model that the have only works with small stores and no couponing. You will invest over 200k and in a year not be able to sell it for 50k. Only 20% of the owners are profitable. If you are approached to buy a quiznos….run!
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Quiznos lied to me and screwed me royal. They told me what a great opportunity it would be to open a Quiznos in a CBD area (that’s Central Business District). So I poured $250,000 into a franchise agreement, lawyer’s fees, the store build out, equipment, etc. into the location they gave me. I opened in October, 2005 and am closing in July, 2006. AND I AM BANKRUPT! The store never came even close to the potential that Quiznos said it would, and I lost everything: the business, my home, and my lifetime savings! My credit score is ruined and I have little hope for any kind of financial recovery as I am over 50 years old. DO NOT buy a Quiznos franchise! If you do, you will lose all of your money. This scam is worse than the Nigerian EMAIL scams!
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Hi, thanks to all for the testimony above. To be honest, I’m not quite sure what to think of it since most of the comments left behind all seemed negative. Although, I did read the part where only 20% of quiznos franchise owners are successful.
However, I will say this! I am very serious or should I say was very serious on buying an existing quiznos franchise in Pennsylvania (sorry cannot disclose locations). After scouting over a dozen stores within a 100 mile radius, I couldn’t help but notice that some stores were in immaculate condition but NO TRAFFIC (suburbs) at all. It looked like the employees inside were sleeping? I’m not sure how much was spent to build this business, but it sure does not look like they were recouping their costs. On the other hand, I was in a downtown location which was doing traffic out the door and halfway down the block from 11:00am/2:00am. I actually did a quick time study to see what the turn around time was in terms of traffic, it was phenomenal!!!!!!!! I also have all the financial statements at this particular store. This particular store is doing approximately (average $12K weekly). How did I come up with this average. I dropped the highest month and the lowest month of sales and took the average of 10 month’s. Not bad. What I didn’t see was many of the item’s listed in the very first breakdown of (burden costs i.e. cc fee’s, linens, FIXED COSTS of which some were hidden looking in hind sight.
Also, I asked the franchise direct as to why they were selling the stores (especially after some of them were less than a 1 year old). This was the interesting part. Its funny that I seemed to get all different stories ranging from “family problems i.e. family shareholders” to I’m just getting out of all my franchise businesses. I got the feeling that I wasn’t getting the full story from the franchise sellers were looking to sell soon. Needless to say there were a lot of conflicting stories?
Also what I found interesting was that these people preached about the limitless income, I was even told numbers like $140 to $160K. I have even seen financial statements which reflect this. However, I also found that no matter how busy some of the stores were, they could not keep up with the burden costs! Now myself coming from a Manufacturing/Production background can even tell that there is something wrong with this hole scheme.
In conclusion, I hear what everyone is saying above. I would appreciate if someone with actual quiznos experience could leave a phone number where I can reach you. Before I spend a lot of money, I would like to hear from you in detail about the pitfalls and/or successes you may have had. thanks.
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I have a job that requires me to do a lot of traveling up and down the east coast, and i must agree that i think Quiznos sandwiches are very good. But the main complaint that i hear from other customers that i’ve met in all of the Quiznos is that the prices are just too high. I have even seen some people walk in, whisper “they’re too high here” and walk back out. It seems to me that Quiznos corporate is probably making excessive profit at their stores expense. I have also been to many towns where there are stores within a mile of each other also; come to think of it. I like their sandwiches, but i will admit i don’t see a long line of people waiting to buy a sandwich at many of them when i go there at lunch or dinner time. Good luck with one of their stores. If what i’ve seen is an indication of business viabilty, you’re going to need a lot of luck.
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There was a time when I really, really liked Quizno’s for a fast-food sub. Then Potbelly came along and, well, the rest is history.
But I was feeling nostalgic today (and thrifty!) and decided to visit Quizno’s. Coupon in hand, I headed inside to get a nice, tasty sandwich. Visions of nice, bubbling cheese and charred bread floated in my head…
and all of that vanished when I read the menu board.
The average price of a regular sub was - no exaggeration here - $8.00. The cheapest was the veggie at $6, but anything above and beyond that was high. The regular sub is a little big, so I decided to get a small sub. Cheapest (veggie) was $4, and ran all the way up to $6.50.
Large subs - which must be really big - were $9 and up. And up! For a sandwich!
Quizno’s isn’t doing anything really unique here. They’re trying, somehow, to market their basic sandwich as some sort of premium food. But the “Let’s pay $8 for a sandwich” game is best left to Cosi, where they at least pretend better.
I just can’t see any reason to spend $6.50 for a Quizno’s sandwich when I can get the same thing at Potbelly for $3.89.
What’s worse is that the Quizno’s also pulled the “you must charge at least $5 in order to use a card” deal without posting said restriction anywhere. So for more than the cost of a sandwich, chips, and soda at Potbelly I got a sandwich and a cookie.
Quizno’s, you stink.
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Holy crap!!!!!!!!!! I was doing some research to find some numbers on Subway’s. And I came across this board. One disgruntled owner reasonable. Two not too far out of the norm in terms of statistics. You can’t please everyone. But massive negative Quizno owner testimony one after another after another after another………!!!!!! WOW, if the morons at Quizno’s HQ were reading this you think it would be a wake up call. With the damning testimonies from owners here I don’t know how the hell HQ could EVER sell a franchise.
I’ve been in the service/restaurant biz for over 18 years. So I totally feel for all of you that Quizno’s screwed. For any of you that still got out with the shirts on your back, open a Subway. #1 franchise year after year after year.
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ME - Subway is on par with Quiznos in regards to their disgruntled franchisees.
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This post is right on target. My parents just recently opened ad Quiznos and are in a world of trouble. They poured their life savings(over 250K) into it and have no return on it. In fact in the last couple months they had to add additional capital to the business just keep it running.
Initially, Quiznos will sell you on the freedom of owning and operating your own business. They will tell you how they have a proven system and that they are there for you the whole way. That’s ALL BS. The reality is that once you open the store you’re on your own. Quiznos biggest concern at that point is royalties. It makes sense right. The owners struggle to keep the store going, however Quiznos still gets their 11% percent regardless. I would strongly advise you against getting involved with them.
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Totaly right I own 3 stores Joe Smo can open a deli store across from me and he’s only 1 store can still get product cheaper then what we spend on Quiznos product (same product)Quiznos has almost 5000 stores and moving to open 10′000 no kidding by the year 2010 with that much buying power they should be getting a huge rebate on the distributors and they do but they gouge us by selling at a higher price to franchise owners.I’am selling my 3 stores or trying might even give them away if I could.Don’t get into this racket it’s A scam
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STAY AWAY FROM QUIZNOS AT ANY PRICE!!! I own a store in the Chicago area and I can tell you that the majority of stores are losing money or barely breaking even. I bought an existing store and it has been going down hill to the point that I’m almost broke. I spoke with a guy that auctions the equipment of closed stores and he has done 17 in the last 3 months. Quiznos screws us in hundreds of ways. They get kickbacks from vendors they force us to use, they take our Pepsi rebates, mark up the food 20% or more, put out coupons that they don’t reimburse us for, create sandwiches with 40-45% food cost and that is just the tip of the iceberg. QUIZNOS IS THE BIGGEST SCAM OUT THERE. THEY GET RICH WHILE HARD WORKING PEOPLE LOSE EVERYTHING. ALSO, CHECK OUT http://WWW.TOASTEDSUBS.INFO FOR MORE INFO.
This will be my only post here, thanks.
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I opened my first Quiznos about seven years ago. It was a pretty good company back then. Now it is run by a group of morons. There is no president of operations at this time. Same store sales are falling even though Quiznos sends out massive coupons over the internet and newspaper inserts. The business model of this company is to bleed you dry and force you to sell the store at a distressed price. Buyer number two comes along, they bleed him dry and the cycle continues.
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Well I was one who spent my fee to get in because I loved the food when I tried it. Now that I have spent the money I know enough to not to throw more in that direction. Is there a group out there (class action)who are working to get their franchise fee back?
thank you
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I am looking for someone who has experience in closing a store. I bought a re-sell in May 2004. Store was doing great for at least a year. I was doing over $10,000 per week. Well, I had heard that they were putting another store up only about 2 - 2 1/2 miles away. I hurried and jumped on the opportunity to purchase that one. It was’t that I thought this was such a great business opportunity…I just knew that I would be the one to suffer becasue whether I acquired that location or not, they were going to put a store there. Well, now the new store is doing about $10,000/week and the old store is doing about $5,500 per week. Imagine how painful this would have been if I had not purchased that second location. Well, my rent at the first store is $6000/ month and my insurance is outrageous and our minimum wage is 6.40 per hour. Did I mention that I live in South Florida? Well I am possibly interested in closing the first store before any more damage can be done. Between both stores, I am barely breaking even and the stress is unbearable. I don’t even think we could sell that store at this point. Honestly, I don’t think we could give that store away. Well, anyway, I am looking to find out what the repercussions are for closing a store. What happens with corporate? Will anybody come after me? Will I be sued? I don’t have an SBA loan. I do, however, have a loan that is secured by a property of ours. I believe, however, that the second store could absorb that loan. Would they try to make me forfeit the second store? Any help would be appreciated.
Thanks
Dee
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Thanks for the various inputs. I’m a skeptic when it comes to boards like these, but the data is very important in making such a large time and monetary investment - so thank you. The store I was looking at purchasing has a new store that opened up 0.57 driving, and only 0.3 miles walking! **What in the world are they thinking?** The local rep said they were serving a different market, and the demographics of day workers justified having one 0.3 miles away!
The current numbers of the other store look really good, but I was just about to do my own basic calcs on minimum sales needed to get by before I found this post - thank you for laying it out.
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This is good info but what I have also heard is that there is no way to think you will become rich on your first store
and that in order to succed you have to own several stores.
so in order to start a franchise you must have a good savings acount it is not good idea for someone who has some money
and no experience in the industry to think of owning one ? if it looks to good to be thrue is probably not good at all.
It would be interesting to hear an opinion from a succesfull quiznos owner.
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What about Subway? Are they the same as Quiznos. Can anyone post some info on Subway? THANKS
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Thanks a lot for the very helpful information, Here is how I see, you mentioned 45k is 18% return on the investment of $250,000, but that’s wrong, because we would not be investing 250K the maximum we will be investing is 40% so that will come to 100K (the remaining $ we will be from the bank loan) so if we make 45K per year and its 45% return on 100K investment. Not counting the equity built by making the back payments. Suggestions/Comments welcome, am I missing some thing?
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FYI: 1ST London Ontario Quiznos to go under - Nov 2006 - Rich & Dundas St.
Stay tuned, there will be a second, possibly 3rd.
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#43 Losing The Chain Mentality: Sold, closed or bankrupt?
#42 Anonymous: Leverage isn’t free, and that money you borrowed costs money and could be invested somewhere else, but in this case it is invested in a business and is part of the overall return calculation.
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Hi All,
I have a full time job and I am planning to buy a Quizno as a Investor. I will not be able to work full time in the store, I want to hire people to work during the morning hours and I am planning to work during the evening starting at 5 pm and also work over the weekend (Sat and Sunday). I will have to invest 40% of the cost of the store. Can some one tell me what should I look for? I talked to the present he wants to get out because of the personal reason. I store is 1 year old. The store is presently making around $7500 per week.
How can I believe the sales numbers given by the present owner to me?
It’s OK even if I am not making a lot of money in the starting, I am looking around 3 to 5 years and sell the store after 3 to 5 year. When most of the borrowed money is paid off. But as I will spending evenings and weekends I would still expect to take a small paycheck at least. ($1500 per month)
Any suggestions would be appreciated.
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RE: First Quiznos to close in London, Ontario Canada. Definitely closed, equipment/signage has been removed.
As far as the individual looking to buy a Quiznos you could request Z readings from current owner to
verify sales. Its the bottom line (net income) you might have difficulty in determining whether the
numbers work. But here we go again another Quiznos franchisee wanting out in less than 2 years! To be a
franchisee of any business is a very risky proposition given the gross inequities in your standard
franchise agreement. Compounding that problem is the high food costs in the submarine
sandwich business and the very competitive fast food environment.
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what is a Z readings?
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Not sure what kind of cash register Quiznos uses, Im sure they are fairly standard for all. The Z reading refers to just the cash register tape reading which usually breaks down all the sales for the day, what was sold, how much, hourly sales, totals etc. This will guarantee you view the actual sales.
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Any success stories? I did not hear any single success story, s it because only people who burnt there fingers are here and the people making money are busy?
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anon #49 -
I think there are no success stories because only large multi-unit owners have the leverage and margins to make an adequate return. And still, those who have been successful over a few years find the franchisor inserts new franchises near you and dilutes your earnings back to the mean.
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Can any one tell me, how much does it cost to open a new Quiznos, I am looking around Boston, MA.
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STAY AWAY FROM QUIZNOS AT ANY PRICE!!! I own a store in the Chicago area and I can tell you that the majority of stores are losing money or barely breaking even. I bought an existing store and it has been going down hill to the point that I’m almost broke. I spoke with a guy that auctions the equipment of closed stores and he has done 17 in the last 3 months. Quiznos screws us in hundreds of ways. They get kickbacks from vendors they force us to use, they take our Pepsi rebates, mark up the food 20% or more, put out coupons that they don’t reimburse us for, create sandwiches with 40-45% food cost and that is just the tip of the iceberg. QUIZNOS IS THE BIGGEST SCAM OUT THERE. THEY GET RICH WHILE HARD WORKING PEOPLE LOSE EVERYTHING. ALSO, CHECK OUT http://WWW.TOASTEDSUBS.INFO FOR MORE INFO.
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This is heartbreaking. If it is that terrible, isn’t there something franchise owners can do together to get their message across to corporate? Or is it that once you buy, you are done for and nolonger have a voice? I think franchise owners should have a union through which they can make their dissappointing situations known to corporate, and demand changes. Or is that impossible?
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Can any one please tell me, how much does it cost to open a new Quiznos (around 500-600 SFT location), I am looking around Boston, MA
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It will cost you your life savings, personal life and your sanity. Don’t you get it??? A Quiznos is a BAD INVESTMENT at any price even in Boston. Go take your money to Vegas and bet on black and you will have a better chance of making money. Or are you an idiot, because you keep on asking the same question when everyone is telling you to stay away.
Franchise owners are doing something…suing Quiznos. Once you join Quiznos you are a slave to the franchise agreement you signed. They put everything in their favor and you end up screwed, because you have no rights. They make you do what they want and they don’t care if it loses you money. They get all their money up front and leave the franchisee with next to nothing. The franchisees do all the work and corporate makes all the money. I was naive when I got into this but boy have I learned the hard way.
If anyone out there still wants to buy a Quiznos, then God Bless You, but don’t look back and say you were not warned.
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The honest answer “Cash Wise” if a brand new build out, 1500 sq feet, aprox $250,000 bare minimum. to build out one store. Every area of the country is a bit different.
If you decide to go forward please read the posts mentioned on the site above when doing your due dilligence. Make those phone calls, randomly, get as much information as you can, then proceed with caution. Good luck, you’ll need it!
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Comment by burned not toasted…YUP! - Thank you for your input. can be belive the sales numbers given by the existing store owners ? As I am looking at couple of Stores the sales numbers looks good. But not sure why the owner wants to sell the store, there is always a story every one who is trying to sell a Store.
Can we buy a existing store if the price is right? As the existing owner wants to less for loss because of some reason?
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I totally understand the problems of owning a Quizino but…
Can we buy a Store from a existing owner if the price is really low…almost 25% below market?
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#58
Market is just what someone is willing to pay. After taking into account debt, time commitments/salary, return on invested capital, discount cash flow valuation, free cash flow, etc…you may determine what you’re willing to pay to be quite low.
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what is HORNE ACCOUNT? I might have spelled (HORNE) Wrong
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HORNE, LLP is an accounting firm new quiznos owners must use for the 1st year
cost is $75.00 per week
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If you want to invest in Quiznos check your area very well before you invest. Do not let them pick a site for you,look at all the stores in the area at lunch time to see how busy they are. I picked my area not Quiznos, even though my Area Director wanted me to go elsewhere. I take approx. $7,000.00 a month out of the store as income. My sales average 12,000-14,000 a week, even after Quiznos opened up a store less than a mile from mine. The new store owner cannot pay his employees or his rent and is talking about getting a job to stay open. He also does illegal things like clocks his employees out and forces them to stay and work for free, which means that he is not paying correct state and fed taxes`for them.
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I just was reviewing the francise agreement luckily I have experience w/contracts and this is obviously one sided to the point of no return literally.Since reading all your comments It really helped me to go with my gut feeling which they really have great sandwiches but it seems like the only one’s eating is HQ and the customers, and the hard above average working person willing to take risks give all they got is just going to lose. Also to the person that commented about the 20% off successful locations,the main reason that people want to get a Franchise is looking for sommething that has proven success so your 20% is not looking to great.How many McDonalds do you heear about closing? Also to HQ after someone is willing to spend there life savings and put there property on the line these are people you should futher help develope and let them be apart of new openings in there area if they chose and also when you write an agreement without any exclusive what your telling them is once we get the ball rolling that your going to roll over us just for the possibility of you making more money.There is enough to go around best of luck to you all.
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Thanks to all of you for your comments. I have paid the $25K in franchise fees and have not opened a location yet. Instead, I have negotiated a purchase price for an existing location and am trying to decide if I should complete the deal. Based on everything I have read, it looks like a bad deal and I should be willing to walk away from my $25K and save myself from significant more losses. AM I MISSING SOMETHING??? Unless the store makes more than $10K a week, it seems unlikely that the store can make a profit. Is there anyone who can think of a reason to go through with it?
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You dont want anything todo with quiznos.Even if you have a store that does 10000 a week.You get run off your feet,you spend twice as much on your food orders and thats were they screw you most,you need extra staff that steal from you when you arent looking.
If a store is doing well it wont be long before they put another closeby to take half your bis away.
I have been lied to by the aholes at quiznos for 5yrs now.Just try to get a simple answer for anything.
Ask were they are listed in the top 500 franchises now and ask what happened to the poeple that got FREE franchises on THE ELLEN SHOW last yr,bankrupt. I could write a book for all the crap myself and 1000s of QZZs