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.
TIF is miffed that readers of Franchise Pundit are turned off of franchising when they understand the nature of the “beast.” Franchising, in terms of single unit retail franchises, cannot be justified generally as an “investment” but rather a divestment of common sense and good judgment that is encouraged by government regulation of franchising and the hype of franchising as producing The American Dream, a business of your own, with little risk involved.
TIF will never admit that franchising, as a business model, is just a relatively new way of growing retail chain businesses and gross sales quickly while the franchisor is avoiding the risk and the expense of building the physical units that will bear the brand name and produce the gross sales for the franchisor. As Paul Steinberg says in his excellent study, “Beguiling Heresy,” franchising should be looked at as the capture of cheap labor and cheap venture capital that is only a good deal for the franchisee when there are actually PROFITS for the franchisee as well as the franchisor. If there are actually PROFITS for franchisees, it would seem that the great majority of franchisors would disclose unit performance statistics. Yet, they don’t! What does that tell us?
The “safe harbor” provided by the “package” of the FDD and the actual franchise agreement, the sacred contract, permits franchisors to capture the cheap labor and the capital of franchisees without disclosing “earnings” or any unit performance statistics to new buyers of franchises who consequently can, in actual practice, be stuck most of the time term of the contract at at “breakeven” or below if they can’t sell the business off to another franchisee. Their “slave” labor which is ensured under the long-term contract often produces profits for those on top of the pyramid of the system gross sales.
Franchising is not a joint venture, a partnership, or even always the marriage of the same interests because franchisors CAN and DO stand and profit even as a substantial number of their startup franchisees fail as long as they can acquire the tangible and intangible assets of the failed franchisee one way or the other to maintain and grow gross sales of the systems.
Franchise Pundit is an honorable investment advisor who doesn’t censor the opinions and posts of disenchanted franchisees who post on Franchise Pundit.
Carol
Carol Cross wrote on June 13, 2008 @ 5:08 pm:
Carol you must fight TIF with all your might! He is a capitalist trader and he must be stopped. We are with you!
Chef
Just bougth a Quiznos for $85K, making $25k after all expenses annually, (absentee owner). In business you take risk, and knowing when to buy is key. I would not build out a quiznos for $250k because there is just no way to recoup that investment. I sympathize with all the people that lost above, and hope you are able to get back on your feet. if you are going to make serious money with Quiznos you need to buy multiple units at prices similar to the above. You would not become a millionaire with 1 or 5 but as long as you know what you are in for, you will be okay.
How are you doing now?? Would you still recommend it?
can anyone tell me who the vendor is that supplies the paper sheet and paper bag organizer thats black in color, made of plastic i quess that is used above the front cold prep area…or maybe a contact outside Quiznos that has inventory of store equipment after a closing in the New York, NJ area …thanks Bill please email me at wav1@hotmail.com
The best day of my life was 1) My son being born 2) Marrying my beautiful wife 3) Selling my store. I will remember the day until I die….April 27, 2007. Unless you pay cash and buy 5+ units at a STEEEEEPLY discounted price…stay away. Don’t buy a job. If you want a job, go work for corporate America and let them assume all the risk.
AMEN Tom!!!!! but I would have to disagree with you on one point…….I wouldn’t take 5 stores if they GAVE them to me…… You are EXACTLY right. If you buy into Quiznos, you are buying yourself a less than minimum wage job….. Just about all of my employees made more than I did and worked less hours than me…..and I owned 2 stores…… One of the best days of my life also, and we didn’t even sell the second store…..we just closed and locked the doors, and felt A LOT of weight instantly lifted off of our shoulders… Good Luck Tom. – and everyone don’t forget……………….. ROT IN HELL QUIZNOS Corp!!!!!!!!!!!
How can you end up making less than your employees, that doesn’t even make any sense. Definately poor management skills.
wow did you take grade school math? Do employees have to pay rent, utilities, food, loans, etc? Employees can easily make more then owners. They have a positive cash flow the second they start their shift. Owners on the other hand have to sell enough to break even before they even see a penny.
You have no clue Ive had 7 No 1 stores and increased sales 20% or more in over 10 yrs If run right you should bring in 75k to 100k for you pockets.Pay for cheap help you get low dollars
This forum is a lot of help.
What are the financial consequences, if I close doors? My quiznos is 1 year old, and it is eating my personal money.
I know I need to pay rent until occupied, but how about Royalties and other stuff?
This has been an incredibly enlightening thread. After reading it, I’ve pretty much made my mind up to not consider a Quiznos purchase opportunity that a broker presented me. However, before I do, I’d appreciate some comments on what I’ve been presented on tax returns.
The store is grossing a bit over $10K/week.
The COGs is right about exactly 30%
The total rent is about $3,500/month
The labor salaries are about $6k month. The store is presented as absentee run.
The bottom line is, on the tax return, about $75k in annual compensation to officers and another $60k in gross income. Thus before any addbacks this store – again based on tax returns – is putting $135k + a year into the owners pocket based on sales of $550 or so.
This seems like a very different story than what I’m reading, and I’d be grateful for any feedback as to why.
Owners dont want people to know the real facts.Phx store $5500 after FLPD’s owner still complaned,He idid nothing.Got rid of the pro ‘s help and now does 1200 after FLPD’s Remember they get dep and amort to recoup thier money
Are you certain that you are getting the correct returns? People have been known to make up dummy returns.
Compare the returns to the sales as reported to the franchisor. If your jurisdiction requires the collection of sales tax, compare the gross sales to those reported on the sales tax returns.
Remember that many QSRs keep people off the books, or may pay partially on the books and partially in cash.
The COGS is reasonable for a sandwich shop but is very low for a Quiznos. Most Quiznos run considerably higher COGS.
A low number may reflect deliberate understatement, or buying from outside sources not reflected on the paperwork, or deviating downward from the zor-mandated formula, or high price-points… there can be a variety of reasons, but I would look and see the COGS of nearby Quiznos and if neighboring units are significantly higher that is indicative of possibly bogus paperwork being given to you.
Finally, Quiznos itself has indicated in sworn testimony that 40% of its stores are not even breaking even. That number is likely conservative. And these are brutal people: when Bob Baber committed suicide and the TSFA posted his suicide note (a bit tacky, to be sure) the response of Frederick Cohen (outside counsel) was to send the TSFA members a letter saying they were all terminated.
You may have run across one of the rare locations that makes money. But the system itself is a huge mess for many reasons, and that is a factor in evaluating purchasing any store in this system. Bear in mind that at some point you will want to sell, and your exit strategy should take into account an increasing reluctance of buyers to consider Quiznos due to the negative press. Perhaps that will change, but it remains a risk factor.
Never, ever, ever buy a Quiznos franchise.
If you already have one, put it up for sale now.
If you get one for free, put it up for sale immediately.
If you have already given them $25k for franchise fee, walk away from the deal and be happy.
I own a Quiznos and would like to start plan B which is closing the doors. Has anyone went through a complete closure. I owe about 130K on a secured bank loan.
What type of atterney should I be getting?
Would anyone that has experience in provide some advice?
Thanks
Your loan is also likely personally guaranteed by you and/or your spouse. You may also have similar liabilities as guarantor for the real property lease.
You should speak with someone familiar with real estate and contract matters, and preferably someone familiar with franchising. You may also be facing personal bankruptcy issues under your Guaranty, so if you think that you may need to pursue your bankruptcy options you should find someone experienced in that area. You may also wish to do some pre-bankruptcy planning (it is legal, but you need to speak with an attorney familiar with bankruptcy).
Here in WA the close as fast as they open. Last year 3 of them near Tacoma just closed one day and never reopened. No sign on the door or anything. Even after a year one of them still is untouched. Has the chairs stacked on the table, napkins out, still has the quizons sign up, looks like they just abandoned it and walked away. Then recently one in Burien (near Sea-Tac airport) that they just built looked like it has closed as its no longer listed on the store directory.
I used to own a store and if any has questions, email me at dallasbuckeye@sbcglobal.net. I’ll give an honest opinion.
It will be helpful to also publish the city in which these quiznos are located. I am planning on buying one in NC and would like to know if there are such horror stories here
Brutus11 wrote on November 17, 2008 @ 12:46 am:
How can it be any clearer? Take it from this franchisee, the horror stores are everywhere. Quiznos is the problem, their business model makes it near impossible to turn a profit. Really dont do it…..how you can still consider it afer reading the original post is beyond me.
Brutus…don’t do it. You’re buying a 7 day a week job. Too much headache. Take your money and invest in the market while stocks are low. I’ve never been so happy to lose money when I actually sold my store. Now the guy that bought it from me hates it. Listen to the current and previous owners and don’t do it. Quiznos controls too much of the process and allows you little freedom.
Whoever has been reading these, and it is my first time here, don’t buy one of these dogs. I own one in Pa. and I originally wanted to own multiple units. I am a VERY experienced, successful multi unit retail manger, I have a competant trustworthy store manager and we have NO CHANCE of EVER making any money. Don’t let these guys fool you. There is NO possible way of making a good living with a Quiznos franchise. My FBL, or what ever he is called now, came to me and said he thought there was theft. My food costs were to high. I challenged him, Greg Brenneman and Dave Deno to come to my area, ride stores with me and talk to othe owners a I have. No response to that one. I go through shopping centers. If a Quiznos has 3 or 4 customers at lunch time they are lucky. I have a CBD store and lunch helps but it will never be enough.
Save yourself your savings and health and don’t do this.
Quizno’s has a long history of problems with franchisees. In fact one of the earliest franchise websites (possibly the first site) was Quiznossucks.com which Quizno’s ended up buying from the bankruptcy court when the franchisee who started the site went bankrupt. There has been a constant series of lawsuits, and while the majority of owners are not suing, they will tell you they are not making any money.
Very, very few of these stores even break even. There are a number of reasons for that, but the short story is that if you are thinking of buying a Quiznos you should read some of the stories on this and other websites (such as BlueMauMau) and talk with people who know the history of this company.
I goback 10 years with Quiznos,If run well you can make a good profit,All so for is people who receives money from mommy and daddy,Restaurant work is WORK most owners dont know that meaning.
Wanted to say thank you to everyone who posted here. My girlfriend and I were in negotiations to buy a Q. in a metro area. Owner had the financials and was showing a profit. We have decided to take your advice and run! Of course, he was not listing all the expense categories and requirements which you have disclosed.
We are going to instead roll the dice and purchase a cafe for 25 cents on the dollar which is losing about 1000 per month and see if we can turn it around. Even if we fail, the investment won’t ruin us like the investment in a Q. would.
Once again, thank you to everyone and we wish you the best!
I wish I had done more research before I invested in Quizno’s. I really enjoyed the sandwich and felt I could be passionate about running the business. My mother died and left my two sisters and I some money. Since I have a track record of being fiscally responsible, my sisters turned over their share and trusted me to invest. Needless to say, I rolled the money into a Quizno’s. My life has been a living hell ever since. It’s going on 2 years, and all my family’s inheritance is gone and Im looking at closing down the store. Quizno’s business model is set up to scam the individual franchisee. In a moment of desperation, I lost my cool with HQ and the lady told me to F*** myself. I admit there were a few words I should not have said, but those fat cats on the other end couldnt care less if I folded. This experience has destroyed my dreams, my relationship with my sisters, my kids have had to go without for 2 years and Im left with nothing to show for it but a picture of me infront of the store at grand opening, which I am about to burn.
F.U. Quizno’s!
Easy come easy go,restaurant work is not for you you need an easier job
SHUT THE HELL UP AZJIM! YOU SOUND LIKE YOU ARE A CORPORATE GOON…NOTHING BUT LIES,LIES,LIES FROM YOU!
Hello all,
I am looking into buying a Quiznos Franchise for around $35-$50,000 tops. I already have the deal on the table. The store grosses around $320,000 and nets approx $35,000. How good is this buy? Can someone please provide any suggestions.
Appreciate all the help
How do you know if someone from quiznos is lying? They are talking! This corporation caused me to lose everything and of course they blamed it on me as they always do. It is odd that every franchise owner in my area is losing money. We must just be a bunch of dumb lazy people. Strange how we were all so successful before quiznos came into our lives. I went from living on my 100 acres farm and having whatever I wanted to living in my old bedroom at my parents and having to endure calls all day from collectors from places I owe money to. I am trying my best to stay out of bankruptcy but I don’t know if I will be able to. Rick Shcadden or whatever your name is>>> You are a bastard and a criminal. You should be sitting in a prison cell for all the lives you have wrecked but at least I know that some day you will burn in hell. What I would give to turn back the clock and stay as far away from quiznos as possible.
Well i opened my first store in 2003. I will tell you i had a great store, great location and was the sales leader in the midwest. I was doing $15,000 in sales and my first year was able to pay off my entire note. I got blinded by how much money i was making and bought 2 more franchise agreements.
I will tell you i was very lucky and was probably one of a few people that made it out of the big Q with a profit.
My first store, I had a couple offer me $325,000 for the store. They wanted a quiznos and didn’t want to wait. Believe it or not i didn’t sell it to them at first. I actually tried to negotiate more money. Luckily i came to my senses and sold it to them a few months later. Within a year their sales went down 50% ( fully because of Quiznos real deal b.s) I honestly believe that was the beginning of the end of the franchise.
Those owners were suppose to buy my second store, but after they seen all the b.s. involved they pulled the plug. Luckily I had a guy call me the very next day and give me a $10,000 deposit and an offer to purchase for $215,000. I had owned the store for 2 months and was in for $185,000.
My last store i bought on a bankruptcy. I bought the equipment for $50,000. Believe it or not i actually lost money on this store. The landlord had a bunch of hidden charges in the lease and it ended up costing me $5,000 a month to rent a small space in a shit hole gas station. I luckily sold the store for $80,000. Which ended up being a loss after all my costs to reopen.
In the Midwest people have been able to pickup stores for under $10,000.
My advise to anyone getting in is to get an existing store that did at least $8,000 a week in volume. Make sure your lease is low (under $2500 a month). Finally make sure you are buying in all cash. You cannot have a loan to make money with this system.
Unfortunately this company seems to attract a large number of people that are novices when it comes to running a business, especially a food service business that normally has very thin profit margin to begin with. The restaurant/food service industry is a not a business to cut your teeth on and Quiznos appears to be an especially bad model that sets the franchisee up for failure to start.
Be very suspcious of sellers that claim they are able to earn a sufficient return to even pay back their debt in very short periods of time. People need some finance and economics training to understand some basics. This blog has had some very usefull information…beside the bashing of the franchisor….when you collectively put together all the info about the various and typical costs, the business model does not provide a return to the owner to compensate for a salary, return on owner’s capital, and repayment payment of debt.
When some of these bloggers say you need 3 to 5 stores to make money, they are ignoring a central requirement with the purchase of each additional store comes additional investment of $150,000 (for used) or $250,000 (new) of invested capital—yours or the banks—for each store. So if you actually make $25,000 to $35,000 net per store, your return is 10-12% for the whole group with a great deal of risk.
In Washington State there appears to be a large turnover in ownership of Quiznos stores. Espically telling (and alarming for the original owners) is the steep discount in offering prices and actual sale prices from the original cost to build. It is not uncommon to see stores 1 to 3 years old selling for $50,000 to $75,000. At those prices, astute business people realize that these prices are not artifically low, but rather the true economic price necessary to attract buyers based on the actual operating returns and high financial risk.
hi i would like to sell or transfer my quiznos in miami…2008 gross sales 561.000k…excellent location moving away from miami…owe to the bank 285.000k
washingtonian wrote on January 1, 2009 @ 3:49 am:
I want to respond to this I am a very experienced business person. I run multi unit retail operations successfully and don’t want to hear about novices. This franchise is horrible and the franchisor treats franchisees like they are slaves. They don’t care as long as they get their money weekly. I have said before and I will say again. Unless someone gives you this franchise, and frankly even then, you won’t be able to make money. I know there are a few people out there who do but the vast majority don’t and a lot of them don’t even take home a paycheck. If anyone wants more info you can also email me at barmarmgmt@yahoo.com.
I was reading through all of this and although I agree with most of this I know of some highly successful stores. I’m not sure if all the failures are in the states or on the east coast, but here in BC, the Greater Vancouver Area to be exact, They seem to be doing really well.
I have family who own one Quiznos their sales are about 5k-7k per week the lease is about $26.sqft. The store was purchased for over 350K.
Currently the store is paying the owner/manager $2400/month or about 28,000/Year. On top of that it is paying for other investments which are over $2500 per month. The store was not paid for in cash. Since owning the store the owner has increased profit by over $5000 per year based of the last owners books.
There are two other owners in very similar situations. One of them used their quizno’s to pay for a new house and a new car. This owner also works there full time and nets over $80k/annually which includes about $30,000 in wages.
The last owner nets over $100k he is located in an business district area near a high school school. Most of his business is larger orders and at lunch time the lineups are out the door consistently.
I am not saying that they will be successes, I do not work for Quizno’s. I am in the process of doing research on whether or not to purchase one. There is a new one that opened just over a year ago and it was valued at about $300,000, they do minimum $7000 per week and the lease is low. I did a walk in offer ($350,000) to the owner just to see if he is interested and he flat out said no. Apparently it was his 3rd quizno’s in BC and he offered to sell me one of his other ones for $300,000. So I assumed that the other one was obviously not doing as well.
I have also seen a few stores close down but without looking at what store it was, just by knowing the neighborhood I would not have opened anything like that there. They were all bound to fail.
Being a business grad I thoroughly investigate EVERYTHING about any financial venture I make and would urge anyone interested in owning one to do a lot of research. One of the ones closing was listed at $250,000 then $199,000 then $159,000 and then it was closed down. Check the location drive around, check the competition. The biggest success areas around here are near town houses, apartments, as well as grocery stores or other big box stores. I have also checked the amount of traffic at different 1 hour periods for about 2 weeks now and all looks good, as I expected HUGE lunch rush relatively quite weekends and almost no sales from 7-9pm.
Be aware of the stores reasons for success or failure. If its close to a high school expect to be relatively quite during summer and breaks, some stores I have researched have nearly a 50% drop off in sales. The owner actually showed me sales for September/October and since I had access to Quizno’s sales files when verified they were accurate at about $6,500/week but the numbers for July/August were about $3,000/week.
The last thing I will say is account for all your expenses then add some, look at the worse case scenario and look at your expectations. If you aren’t being realistic you will fool your self. I see people go “WOW $400,000 sales in a year, Even 25% of that is A LOT”
Do your research, it is a lot of money to invest, and do not try to be an “invester” only unless you have the cash to purchase multiple stores without any financing.
Anyways, there are successful stores but the problem is out of the 6 VERY successful ones near me NO ONE wants to sell lol.
Great comment.
wrote on March 11, 2009 @ 4:10 pm:
Anonymous
on Mar 11th, 2009 at 4:10 pm
———————————————–
Anonymous
on Mar 12th, 2009 at 4:52 pm
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Let’s try this again. It looks like you have done a lot of research but there are some factors beyond financials that you have to consider. I used to own a Quiznos and am also a business school graduate. I wanted to get out of the corporate grind and after watching my wife run two successful Curves for Women, I decided it was my turn at the franchise wheel. I did my research, which I will admit I did not do enough of, and decided to open a new store. My store too made money but not enough to support a family. My weekly sales were $8K-$10K depending on current marketing and promos. I was able to make $3000-$3500 mth after all expenses. The part beyond the numbers I did not factor in was the time to work the store and the loss of freedoms. You truly worked 7 days a week. When the alarm goes off at 2am, you get to meet the police at the store. When an employee calls in sick, you get to work. You have to remember your low wage employees are in it for a paycheck and not worried about how much money you make. I did have a couple of good employees I could count on but for the most part, the employees are in it for play money. About a year after my store was opened, Quiznos decided to put another store 2 miles from mine and sales went down. Quiznos is known for opening new store close to profitable ones to put more money in there pocket. There is no clause in the franchise agreement which states you a defined territory. The bottom line is Quiznos has there hands on several lines (kick backs from food suppliers, hardware suppliers, Source one…owned by Schadden) so they are going to make there money.
I bought my store because I thought I could run a better store than most owners….an I did, but it still did not make much of a difference on the bottom line. If you look at most owners, you are going to see Asians, Arabs, and Middle Eastern people working the stores. Why?? Because they don’t mind working 7 days a week and pinching every dollar to get another penny. I went back to my corporate job I thought I hated and now all the risk is off my back and I feel much more secure. We have sold all businesses (Curves and Quiznos) and I have a lot more time to spend at home with my family. I have the option to work from home and would not trade that for the world. Watching my son grow up is amazing, an opportunity I would not have if I still owned the store. I sold my store and broke even and that was one of the happiest days of my life. Sure I’m not the boss now but the money is better in the corporate world and the benefits are the icing on the cake. If you have the cash to spend, I would think twice for BUYING A JOB when you can get on for free (though they are a little harder to find these days). You seem like a smart person whose skills could be utilized somewhere else besides a Quiznos. If you want to buy a food franchise, I would consider something else…..not sure which one, just not Quiznos. You remind me of myself and I wish I had more people telling me not to do it…..not that I would have listened. I thought I could change to industry!!!!!!
i like to sell my quiznos in miami excellent location call 786 382 5285 daniel
Daniel, You been trying to see your store since November 2007 on this site. You must not spend a lot of time reading the negative posts. 99.9% of the people on this site are not looking to buy a Q. If your store is so good and sales are great, why can’t you sell it? Are you asking too much?
Daniel,
This is a buyer’s market for Quiznos’s so you will have to get real with your price if you are going to get it sold. UNless someone comes in without research and falls for it.
I try to help franchisees sell and offer tips on what to do to sell and get a better price.
mrfranchiseman
Wow! A ton of interesting comments and information on this blog.. I am in the market for a franchised sandwich shop and am seriously considering a Quiznos. The store I am looking into has been in operation for 8yrs with steady sales of around $580K – $600K. The owner shows a net with charge backs of around $100K. The asking price is $225K. Even with all the negativity I read on this page its hard to deny the numbers. I can get an SBA loan and can get into this store for around $35K out of pocket. The only problem is I live 250+miles from the store and would need to hire a manager est. $35k. My plan is to get down once a week to check up on things. Even with the cost of a manager and travel expenses my net would be around $50K. There have been huge cut backs at my current job and I need a safety net, is this a viable option? Please inform….
INtheMarket wrote on March 21, 2009 @ 11:25 pm:
I have just closed a Quiznos. They said my store could do great sales volumes. The truth of the matter is that there is a very very slim profit margin. My store was in Canada on a street with 24000 cars a day bypassing my store. My store struggled from day 1. I also lost my second franchise fee as Quiznos would not give it back to me. They did not even call once to offer any assistance considering my life savings were invested into Quiznos. I honestly would never ever consider another Quiznos. They have basically drown me in debt with unnecessary debts. If you have any questions or if anyone has any questions feel free to email me and I will tell you of honest experiences that I have had with Quiznos. These are very recent. My email is rogerwaynee@hotmail.com
yes tom i think i am asking to much for my store…but sales are good and there is a lot of potential…my problem is i am been relocated and i like someone to take care of the store…i would negociate if i like the price…daniel
“In the Market” epitomizes why all the disclosure in the world won’t eliminate bad apples such as Quizno’s. All the bad press, all the litigation, even the admission by Schaden in the federal court proceedings that 40% of his franchisees can’t even break even (and that is likely a very conservative figure)…
“In the Market” reminds me of Sean Kelly’s observation that “sometimes franchising is God’s way of telling someone they have too much money.”
On the positive side, he is a boon to people stuck with one of these Quizno’s money pits and looking to bail out.
Paul Steinberg wrote on April 4, 2009 @ 8:19 pm:
I spent over $300,000 to build one of these stores. It drained my lifes savings and Quiznos offered absolutely NO help whatsoever. They were very rude to me when I had called them. Their figures were not even close to what the store actually had in sales. I would really and truly not ever want to see it happen to anyone else. Trust me, my life took 25 steps backward and all of my hard work to pay for this store is truly all thrown away by a bunch of corporate scum at Quiznos. Like I said if anyone ever wants to hear real true life stories about Quiznos Scum and how they treat you feel free to email me at rogerwaynee@hotmail.com I will tell you real honest stories.
I am amazed at how many folks are upset with or sueing Quizno’s. I’ve owned 5 franchises, and I believe it is truly hard to find a system that actually works hard for the investors investment. Most franchises are set up simply to make the founders rich on the backs of franchisees who they promise the world to, but make them sign documents which state that the only info the franchisee used to make the buy decision was in the FDD. What a joke!
Chris wrote on December 27, 2005 @ 10:31 am:
I am not a owner; but I have observed 3 stores in my town. I think they are all in a very similar situation.
Lucky wrote on April 13, 2009 @ 1:12 pm:
You know i really really feel very sad that these scum at quiznos will suck people into really ruining their lives. I really wish that people would email me because if I can stop just one person from investing their hard earned money into quiznos and basically losing everything they had it would be worth it. Like I said i dealt with quiznos and they truly are scum of the earth. Please email me if you ever want to know anything. rogerwaynee@hotmail.com
I [b]don’t[/b] think it is FAIR to say the Quiznos business model is flawed. It works just fine but it requires a higher level of sales than many franchisees are attracting!
Life goes on and we pass through
Days of sunlight days of tears
It’s the way life comes to you
Foolish wasting precious years
I am not a fool. My wife is not a fool
I even refuse to call myself gullible. I am not a gullible. My wife is not a gullible
We trusted in Quiznos. They promised us success, help and everything else to get us to buy into the
“dream” they were selling. They had a private secret unannounced agenda! To trap you and screw you,
the franchisee!
We are not fools. But, we have been fooled
We are like so many others who also bought into this dream and lost a substantial portion of their life’s
savings.
Countless individuals and families have been destroyed. Even some lives have been lost
I have struggled hard and did the best I could to create a voice for the franchisees in the system and to
create a “support system” for the franchisees, which does not exist, and to fight the injustices of this
franchise system (Quiznos). Not to bring the system down, but only to make it fair.
I hope my efforts will not go wasted. I hope the government will look into the systematic deceitful
business practices of this franchisor. A serious investigation must be undertaken
It’s been a tough battle
I have been dragged through the legal system for over 18 months by the immensely superior financial
might of the franchisor, which will continue to keep justice from coming to me, and to the hundreds
and thousands of franchisees who are trapped similarly in the system and are slaving for this
franchisor, and those who have bought into the franchise agreement, and not yet become store
operators
I have spent and sacrificed my time, money, family life. I thought of an option to leave the system
quietly and fade away, but now I choose not to do that, and instead let the struggle go on
My struggle will continue after my sacrifice.
Some one must do something about what Quiznos is doing to the trapped franchisees. Everything they
do is in their own self interest, with utter disregard for the interests of the franchisees, to who they sold
the “dream” and put into business, only to screw them systematically from day one
The press and the media must bring out the atrocities Quiznos is carrying on with.
In this franchise system the Franchisor has all the rights and no duties or obligations, whereas it is just
the opposite for the Franchisee, which is the franchisee has no rights, no remedies, only obligations
I have not been able to think well, eat well, for the past one month
My health has been going down very fast
My mental capacity, to think, to work, and carry on my daily activities normally, is severely
diminished
I cannot survive like this much longer
Quiznos has killed me. Destroyed my life. Destroyed my family life for the past seven years
It has been a harrowing experience. We just could not get out of it. All doors were shut
Can some one stop this?
Can the government stop this Quiznos from destroying peoples lives? They have defrauded me and
they are defrauding people. See my law suit (complaint) how they defrauded me from the very
beginning, and then continued their systematic defrauding through out the period, until we left
They retaliated against me for trying to create a voice for the franchisees in the system
We were abused, we were manipulated, we were exploited,
I deeply regret getting in to Quiznos. I wish I had never heard of them
Can the media stop this?
CNN we need your help. Nancy Grace, please help! Glora Alred? Who else?
KTLA, LA Times, OC Register Please
How can a common individual like me and those like me in similar circumstances, there are thousands,
with limited resources get justice?
I believe there will be justice. But it will be too late for me.
There are a large and growing number of us who believe, unreservedly, that the handful of people who
own and/or otherwise control the Quiznos Corporation should spend the rest of their lives in prison.
The Quiznos Corporation is just one of the most egregious in what they do, but the entirety of
franchising in America is open to this kind of abuse. The IFA (International Franchise Association) is
the umbrella entity that, along with individual Franchisors, has enough money and power to buy the
legislation that protects the Franchisor, and exploits the Franchisee. Fair and just legislation, that
would level the playing field, never sees the light of day. Senators and Representatives, primarily
Republicans, continue to sell hard working Americans down the river. STAY FAR, FAR AWAY
FROM THE QUIZNOS CORPORATION. THEY ARE CRIMINAL IN WHAT THEY DO. And treat
any Franchise System with deep suspicion
Signed: Bob Baber
great storie an opinions . I live in south florida, and I came across couple locations for sale at 50K a pop. plus additional transfer fee !!! as an owner opertor,is that a good invstment ?
david wrote on July 5, 2009 @ 5:07 pm:
Maybe. If the store has income before depreciation and amortization of more than $20,000 after paying you a fair salary, then it may be a good investment.
If anyone is going to sell a store for $50,000 it really must be a terrible store. If it was making money you could demand more money for the store. Quiznos really and truly most often then not loses money on the franchisees behalf. Quiznos sucks
I live in Rockford, IL where I used to go to a quiz franchise near my house. They went out of business in less than a year if that is any help to anyone.
don
Get a Jimmy John’s Franchise. It’s a better brand, and the office really cares about franchisees. Solid operations, and you are not limiting yourself profits because sandwiches are so fast. If you have an order for 50 party platter, no problem!
another quiznos out of business in nova scotia. These guys are making a business out of going out of business. Like I said they are a rotten franchise. If you want to know how they do. Get a receipt and it is as follows. 1001 is 1 customer. 1006 is 6 customers per day. The other day I was in Halifax Nova Scotia and the receipt read 1049 at 1pm. that means he had 49 customers. He would most likely have about 100 to 110 customers per day. Multiply that by 7 to 8 dollars because of the bullet selling for $3 and the torpedo selling for $4. The store prob sells about 6 to 7 thousand a week. You would probably make about $15000 a yr providing your store is paid for.. Not worth 80 to 90 hrs a week. The franchisee was working the cash register. Name was Mr.Weber. Was not friendly at all. I cant blame him.