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).
Similar Posts:
- Update to “What a Quiznos Franchisee Makes”
- More Quiznos Franchisees Can’t Turn A Profit
- Cash Discount for Customers
- Paychecks via Debit Cards
- Quiznos Sales & Profitablity – Summary Report
Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-715-8115.
Quiznos is now planning to open 600 corporate owned stores. Sadly these stores may be profitable because Quiznos will not gouge them. Then again corporate rudeness, arrogance and incompetence will likely trickle down and be the downfall of these stores. It will be interesting to see how close they put these corporate stores to their already struggling franchisees.
Dear sir/maddam, I was the first to be hired for this 600 store initiative. The goal was to hire 100 of us, and we reopen 5-6 stores in a year. Once the store became profitable they would sell it and we’d move on to the next store. If we as the manager wanted to buy the store ourselves it was a $5k cask out of pocket, the rest was payroll deducted. $50-60k until the balance of the reopen/remodel & equipment costs were paid off. I was paid $30k and all expense paid. Too bad for me they pulled the program when I got to my first store and bit let go as they did all the other not 100 but 200 managers. They closed all the stores Unless they already had a buyer lined up. The program lasted about 9 months. I bought my store for the promised $5k and am running it. It’s hard to make money. But I am. I’ts more hours than most would prefer. but I ran 14% labor last week and know that the other 6% stays back with me
Quiznos is making improvements but they’re not perfect.
interesting read here, sounds like Quiznos will pay the owner a salary of 23k plus 20% profits! Wow now this sounds too good to be true!
http://tinyurl.com/2w73sm4
even with their amazing advertising, I’m surprised so many stores closed :
http://www.youtube.com/watch?v=cG042nkReBA
LISTEN! BE VERY CAREFUL PURCHASING A QUIZNOS FRANCHISE. I OWN A QUIZNOS NOW AND I HAVE NEVER FELT SO DOWN IN MY LIFE! I HAVE NEVER BEEN SO HARASSED IN MY LIFE! THIS IS PRISON IN HELL! RICK SCHADEN IS THE DEVIL! HE HAS NO MERCY ON FRANCHISEES! HE HAS BEEN HIT WITH MANY CLASSACTION LAWSUITES AND LOST ALL OF THEM! WHAT DOES THAT SAY ABOUT THIS GUY OR THIS COMPANY!
I JUST GOT FINED FROM QUIZNOS $250.00 FOR HAVING NON SPEC PRODUCT IN MY STORE! FIRST OF ALL IF I HAD $250.00 I WOULD’NT HAVE NON SPEC PRODUCT IN MY QUIZNOS (RICK SCHADEN U DIPSHIT COCKSUCKER U) THE CORPORATE WORLD OF QUIZNOS HAS NO MERCY! I HAVE BEEN IN OTHER FRANCHISEES AND NEVER EVER BEEN IN A HELL HOLE LIKE THIS ONE GUYS! THE ONLY WAY OUT FOR ME IS LOCK THESE DOORS AND RUN TO ANOTHER COUNTRY! REASON IS I AM SO FAR IN DEBT FROM THIS HELL HOLE I HAVE TO HIDE! THERE IS NO OTHER WAY WITH THE MESS RICKY THE DEMON PUT US IN! RUN!RUN!RUN!!!!
How long do you have left in your lease? Is bankruptcy possible. I read a lot of people locked their doors and just walked away. How much have you invested and what is your income each month? What are your sales and lease details. Any info you provide can really help future prospects from making a mistake. THANKS!
What if you stop pay royalty?
what can they do?
They will terminate your franchise agreement and can take your store and recoup expenses and lost income from your personal assets (assuming you agreed to personal liability in the franchise agreement).
I was stupid enough to buy two stores in Greater Los Angeles area.Both are shut down now I lost $400000 of my lifes hard work.I hope some one sue Quizno crooks and bankrupt these thugs.I would be a party to a law suit against Quiznos.
ujjalgoraya@yahoo.com
Their new commercials with cats may very well be the worst commercials in the history of advertising. I used to love quiznos subs and now all I picture is cat fur. Can’t eat there any more.
Yeah, Subway showcases their sandwiches and makes them look delicious, even though they never look like that would you order.
Quiznos on the other hand has cats singing in inaudible screeching voices.
Their new ad is their worst yet. Coupled with the new corporate stores it almost seems like quiznos is thumbing their nose at their franchisees. Almost saying “you dared to sue us so now we’re going drive you all to bankruptcy through squandering advertising funds and directly competing with you”. Knowing this company they are covered legally. They will have a higher power to answer to someday though.
Nothing more from DETROIT. Maybe he committed suicide. Quiznos franchisees have been driven to suicide before. Hopefully for him he has only been busy in bankruptcy court. Sad that what could be a pleasant experience, as evidenced by the successful Subway and Blimpe franchise systems, is instead run in such an evil manner.
I can get a Q for about 16,000 dollars in a good location. Only does about 6K a week(owner is absentee, which is never a good idea, since most employees will rob you blind). Rent is way toooooo high, nearly 4k month. This baby will not cashflow even if I get it free and renegotiate the lease. Did a recon of the store and its typical…..3 employees when 2 shoulda sufficed. Typical young workers who dont give a crap about the customer. One employee was kissie kissie with her girlfriend and giving her free food and sat at a table with her for about 1/2 hour while the place had tons of stuff that needed done. The place was not dirty but the employees need to be directed on what to do….ie clean table, take out trash, refill things, etc. My friend has 9 subways and runs them like a gulag…..you have to in order to control costs and you have to hire and fire until you find the right people. These things dont run themselves. I ran the numbers(BTW, IM a CPA) and if I did everything right each month I’d make about 100 dollars a month, maybe. I’ve looked at numerous franchise and most are evil. Do it their way or your toast. After reading these posts I have decided not to pursue it any further. Thanks everyone for all the posts. Most helpful.
Please give us a detailed breakdown of how you came up with $100 a month income in your scenario above. This would be useful information.
I ran the numbers based on the percentages in the chart above and got $114.
Dear Someone:
I f ?I were you I would buy that store despite your challenges. I have over 15v yrs of exp and I wish I could find a deal like that here and I wish I had 45k total I know that I would turn it around in 6m onths guaranteed. Persistance planning is the key.
I own a store. I make less than the “$6k” a week. I bring home WAY more than $100…..$16k to buy is a great deal.
I’m thinking of buying a Quiznos. Could you give me an estimate of your net take home pay each week
I was looking into getting subway since it has been rated no.1 franchise in the entrepreneur magazine. Any thoughts from others would be appreciated especially the franchisees.
Just make sure you have a damn GREAT location! Location is everything….oh, and a CLEAN store, great food, friendly service, good staff etc. Be very involved in the day to day operations. Most well run establishments of this type have an owner/operator on site most of the time. The staff will never care about your store as much as you do. You are the one investing your life savings /home whatever into this. BTW, my sister owns a subway in Vegas and they have a PROFIT of $100,000/year! Unlike Q who you will never make a dime owning.
SUBWAY IS #1 IN LOCATIONS ONLY…….NOT PROFIT, BESIDES THEIR FOOD SUCKS
I have never heard someone say they “loved” subway food. On the other hand Quiznos……yeah, I’ve heard that about them plenty of times. I’ve worked for both companies.
I LOVE Subway’s food. I go out of my way to eat it. It’s less expensive and usually very fast. Q is overpriced and have very few selections. Subway’s portions are also much better.
I wouldn’t trust any of these magazines as I’m sure their ratings sometimes go to the highest bidder. That said I have never known of a Subway that went out of business whereas I have never known a Quiznos that stayed in business or successfully turned a profit. They may exist, but not within 30 miles of me.
Does anyone have any feedback concerning Quiznos franchising in Canada? I know someone who wants to buy a 3 year-old franchise from the original operator, and I’m tring to find some info for him. Thanks!
I would suggest your friend review each of the over 400 postings about Quiznos on this site and the numerous other sites related to how Q does business. Can you give more details. Are they getting it for free (take over lease)? What is the rent/income?
Please check out Blue Mau Mau website and type in Quiznos in search bar before you go any furthur!!!!
go to quiznos.com and click on “own one” fill out the app and someone will call or email you in a week or so.
Interesting reading here. I’ll have a footlong and a side of Hepatitis.
http://eatdrinkandbe.org/article/index.quiznos_saltlakecity_outbreak_010_0820
They have $2.99 combo coupons (SUB, CHIPS and DRINKS) on their website and no Quiznos accepts them. WTF, no wonder they all close.
My local quiznos accepts them. Owner said if they send the coupons to HQ they get reimbursed. She said most owners are just too lazy. Any owners care to comment?
That is a lie. We unfortunately been Quiznos owners for over 7 years and they have NEVER done that. Also corporate will do things like tell you they will give you free product if you run some money losing coupon then they come up with a silly loophole that they don’t even tell your corporate Rep about and deduct some outrageous amount of money out of your bank account on top of the overpriced upfront food cost, loss of money from the coupon and royalties. Quiznos corporation sells franchises and makes money through gouging their franchisees. The average Quinzos has been sold 3-4 times. The corporation office drains all of a person’s life savings and then scares them with a lawsuit when they quit. They “let” those people walk away from their stores by having them sign a legal document where the person promises not to Sue them, then they advertise the store for pennies on the dollar and start all over again.
I own. Although they don’t reimburse all the money, it sure pays batter than making a customer mad. Plus if you got it online it will also show online if the store accepts coupons or not. I take them all. A happy customer is a customer that spends more.
HALBERTCROCKER, you hav eto be a new owner! I onwed for 7 yrs– I got suckered into buying a second store because the first one I owned was doing good “if you dont open it we will give it to somebody else” I did open it but the city could only handle one. All the second did was allow easy access to my already established customer base. Businees was split in half and I was left with two stores that lost money instead of one that made money. The corporate idea is if not to worry abut the coupons beacause you may loose money on the sale but you will make up for it on the volume?????? What does that even mean??? Make up for a loss on volume? So if I sell a sandwich at a $2 loss and the guy comes back once I break even. But the next time he comes back hes got another coupon– so I loose another $2………. And so on. These consumers only come when there is a coupon… Hence there is always a coupon!!!!!! What you need to do to survive in the “Q” world is to establish a customer base on a solid product that is not discounted, not skimpted on and is packaged correctly. Don’t listen to the smoke show that Rick Schaden and his flunky (G MacDonald) throw out at the franchisees.. Unit as one group and and take control over the food line…. Thats where the money is. Rebellian worked in the Egypt it can work at “Q”
we dont accept them because we cannot afford to GIVE food away, Quiznos corp does NOT reimburse franchise owners ONE DIME from coupons
Not surprised she was lying. She is trying to sell store and lies through her teeth. Rumour is store is going bankrupt.
I seonded that.
That’s probably because Quizno’s is stealing money from everyone. I was seriously thinking of opening a Quiznos franchise but, I’ll be sure to take my franchise and my money somewhere else that’s more deserving. Thanks everyone for your helpful information! I’ll also be sure to help hard earned royalties make it to a more deserving franchise in the future.
They don’t close because they DON’T accept insane coupons they close when they do. You have to pay for the food cost up front and then pay a royalty on the sale of a coupon deal that makes you lose money.
I know Americans are very poorly educated but you need to try and understand that if a business sells their products for more than they cost to make, they go out of business.
Quiznos owners with a 4th grade understanding of math DO NOT take those type of coupons that the corporate office designed to force them out of business and seize their store for resale.
Those owners usually make less than a teacher salary and are fighting to keep from going bankrupt and losing their life savings.
If you find an owner brave enough to try and save their business by not taking these ridiculous coupons encourage them, don’t be an ignoramous and give them a hard time.
I think most readers of this blog understand the concept of profit, even the Americans you apparently think little of. The concept of coupons is to attract new customers who will come in, use the coupon, like the food and become a regular customer. If you do not accept the coupon they will leave, go to Subway, and tell everyone they know not to go to your store.
Some franchise owners do not understand this concept. For them I have one request: post this on your door so we will not waste each other’s time.
Owned a Quiznos for 3+ years. Most of the franchisees work extremely hard for pennies and are constantly screwed by Q corporate. I read the franchise agreement…ran an exceptional restaurant…turned out to be basically a pact with a company that wants royalties and to hell with the franchisees. Can’t believe I survived dealing with those mf’s! For those tormented franchisees, there is life after the big Q screw!
wow, thanks everyone for your comments. I was close to buying a quizno’s franchise but after reading this, NO WAY!
AMEN BROTHER, I AM ONE OF THE DOPES OF THE Q
Thanks to this blog I was seriously going to partner up and purchase a Quiznos. But I will not be going this route anymore. Thanks bloggers
Wow, everyone. I was planning to buying one Q. Good thing I did some research and found you guys. Thank you very much.
I was not there for it, but it appears the store here in Bako was closed. Story goes that the owner walked in, told the customers to leave told the employees to go home. Locked Up.
There is now a little, hand written, sign in the window that says, quite simply; “Out of Business”.
I am not sure about all the details, since they came to me “third-hand”, so if there are any people here that know about the location on California Ave. here in Bakersfield, I would be interested in hearing them.
Run for your life……………I owned 2 Quiznos and have filed Chapter 7.
I sold 1 of my 2 to a couple of bankers who had another Quiznos and and those guys filed a 7 also. 3 Q closed in our immediate area within 2 weeks. I lost EVERYTHING.
I even got one with all the equipment FREE and STILL LOST MONEY
http://www.youtube.com/watch?v=w7bmMEjisJE
enough said.
I’ve never could have believed just how corrupt any company could be until I bought into two Quiznos stores. Ive followed this site for four years…., how many times must it be repeated? ……Quiznos is FUCKED! If anyone even considers taking on a franchise after reading this blog, then you deserve your eminent bankruptcy ! SAY NO MORE
There are a few items not correct. No way you can staff your restaurant adequately with a labor percentage at 20% unless you’ve decided to be at the store managing seven days a week or have family managing/working for free, food prices will be near 40% if you’re buying strictly from Q and using their “recommended” pricing. (the food cost of the Buffalo Chicken sandwich is right at 50%) Quiznos coupons like crazy. If you take them all you’ll see a discount rate of at least 10%, in several areas of the country there’s an extra one percent taken for advertising. Finally there is no real tv advertising to speak of and if you don’t know it, tv advertising drives fast food sales. TV. Not coupons, not radio, not local store marketing. Besides, how much LSM can you do when you’re already giving Q 12% of your gross? Finally, with minimum wage help if you think you’ll get by with that small amount of waste and no theft you’re dumb as a box of rocks. You don’t have to believe me but as a former Quiznos owner I can say with 100% certainty that if you use these numbers and buy a Q that $34,000 will be a mirage and you’ll end up in the poor house with the rest of us.
I own, I run 28% food and last week I ran 14% labor. And I’m only there 35 hours a week. imagine if I were there 7 days…….
DONT DO IT!!! U WILL NEVER MAKE MONEY!!!! ITS THAT SIMPLE
As a quiznos owner, This break down is incorrect. The coupon/discount will be at least 9% 3600.00 a month not 0.4% $160.00. You get that in one day! Even if you decide not to take coupons(loose customers) there’s the combo and the “choose 2 for $5″ Discounts. My store averages around 11%. Nor have I or the other owners I know able get food cost under 32%. I could go on for hours. I will be closing my store thanksgiving for good!
You are correct. coupning at one of my stores is around 11%. Also, f I keep food cost at 29% I run out of product and customers dont come in the day before my shipment arrives so that sales day is historically low. Food can easily go to 32-35% to keep the shelves stocked properly. The Pepsi contract that you have to have is terrible! I can buy the product cheaper at my local super market at the retail price, than I can with the Q national pepsi account prices that Pepsi CO charges.
I got another store for “free” and am losing 2,000 per month. Be carefull. The product is great. BUT the economy is in the toilet.
CFO is making effort to change things with better ads, lowering royalties. BUT if you are going to buy a store that makes less than 350K a year– walk away. With 3,500 rent and 300k sales all I do is provide jobs to the community, and my self an $9 per hour job for working 40 hours in the store.
Quiznos is a Crock, Non of the figures are correct. You will be lucky if you make a Dollar. We Purchased a store in April of 2009, our Loss for 2009 was greater than $34000.00, Yes That’s loss not profit, we pulled that from our own individual pockets. I expect our loss in 2010 to be greater than -$50,000.00. If you want something good go else where. We have contemplated closure but for us its not the right time. YOU WILL NOT MAKE A DIME. We run the company and have not gotten a pay check since 2 months after we bought IT!
if you reported a lose of 34k in ’09 and will report a lose of 50k in ’10, why don’t you just close your doors and hand the keys back and walk away? How do you pay your living costs if you don’t make a penny and have lost close to 85k in the past 2 years? Enlighten me…..
From everything I’ve heard from owners the cost of food runs closer to 35%. Not 29% as stated.
I opened my Q”s in 2005 and havent made a single cent, in fact it has been bleeding me dry. After all the compliants they decide to kick back 4%, too little too late. if they would have done this when the economy wasnt in the tank we probably could have made some money. My biggest joy is that I convinced at least a dozen people from not opening up a Q’s.
Hi there! Quick question that’s totally off topic. Do you know how to make your site mobile friendly? My blog looks weird when viewing from my iphone. I’m trying to find a template or plugin that might be able to correct this problem. If you have any recommendations, please share. With thanks!
Quiznos for sale in Miami…owner moving to Atlanta …good sales great location any interested send email to dannynwa@hotmail.com…good price negociable
WARNING – BAD FRANCHISE – NOT MAKING MONEY – CLOSING STORES. CORPORATE EXECUTIVES RUNNING THIS COMPANY SHOULD BE INVESTIGATED. JUST HORRIBLE
I am focused on opening my own business, buying a franchise. Thanks so much for sharing with potential investors like me. Finally, what is the best business, or franchise someone could invest in actually?
One that makes money!
Its a function of what you’d enjoy and what’s needed in the community.
All the Quiznos in my city have closed. The locations were poor, and none of the stores were busy when they were open.