Quiznos gets toasted with lawsuit

It looks like the Quiznos franchisees are not standing by in the face of apparent fraud:

The primary allegations of the complaint are that the franchisees were harmed by the company’s "deceptive recruitment practices" and "failure to deal in good faith" when it took franchise fees from the plaintiffs, but refused to approve locations to open Quizno’s stores. In addition, the complaint charged, Quizno’s has refused to return any portion of the franchise fees, even though the plaintiffs paid more than 18 months ago and are now being threatened with termination.

and more general comments…

Commenting on the lawsuit, Susan P. Kezios, President of the American Franchisee Association, said, "This lawsuit is a classic example of a popular franchise chain using its brand name recognition to deceive hard-working Americans into investing their dollars to grow a franchise. Bob-the talking baby in Quizno’s current media campaign-is definitely talking out of both sides of his mouth in this case."

Added Klein: "It is unfortunate that not enough people are aware of the abuse that franchisees often endure at the hand of their franchisors. Too many entrepreneurs automatically assume that buying a franchise is a safe investment. We are confident that we will prevail in our lawsuit, and are eager to finally bring justice to the franchisees who were victimized while also alerting people who are interested in purchasing a Quizno’s franchise to make an educated decision.

I don’t have a comment from Quiznos, but I’d assume they deny the allegations. Still, Quiznos claims to open a new franchise every 16 hours. Have those franchisees all done enough due diligence to uncover these allegations of fraud? I fear they are too eager to hand over the $25,000 franchise fee.

Even if this lawsuit turns out to represents a relatively small percentage of franchisees, I would never buy a franchise from a company who would keep an entire franchise fee after refusing to timely approve site selection. Perhaps Quiznos has a logical explanation, but I find it hard to believe so many franchisees in the same city would have the identical claims of fraud. Our legal system allows freedom to contract even if the terms are unfair, but those contracts are not enforceable if one can prove fraud or unconscionable terms.

So what is the problem?

  • management’s ego and greed
  • salesmen training and guidelines
  • commission/bonus structure

The salemen’s compensation is composed of mostly commission and bonuses on total franchise fees. There is virtually no regard for franchisee’s site selection wished or oversaturating the geographic market. Management is certainly aware of the complications, but do nothing so long as the franchise fees keep rolling in. These circumstances seem obvious to me. What do you think?

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Article by Ryan Knoll

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. Read 455 articles by
114 Comments Post a Comment
  1. Anonymous says:

    duped wrote on March 19, 2007 @ 5:44 pm:

    DON’T DO IT….THESE PEOPLE ARE NOT ETHICAL AT ALL….I HAVE $250,000 REASONS TO BELIEVE THAT

    i don’t like drive-by postings…how about some details so your comments can help other?

  2. Friend of Subway Owner says:

    Franchises in the sub business must really suck. Subway stores in Madison, WI are loosing $ fast.

  3. Anonymous says:

    I need a good franchise attorney to defend me against an unethical franchisor in Southern California. Do you know one?

    Thanks

  4. Paul Steinberg says:

    Ask Robert Purvin at http://www.aafd.org, (he is in San Diego), or Susan Kezios at http://www.franchisee.org for a referral. Also, I think Robert Bolter is in SoCal, but ask Ryan, who knows him.

  5. hello says:

    this site is great
    any one know of any online sites that talk about ANY
    problems related to the SUBWAY franchise?
    i’m looking into starting one….
    i would like to hear from present and past owners
    about SUBWAY.
    OFCOURSE, SUBWAY people from the company are not gonna tell us anything.
    from what i understand, their job is to piant a rosey picture.

    any input would be great
    thanks

  6. Corporate Quizno's says:

    Besides my own unfortunate experiences with Quizno’s over the past five years, I know of too many other store owners who have been raped by this fraudulent company. ….they are not to be trusted…at least in Canada , they have no ethics. I knew from the constuction stage that they were on the take with suppliers, and it only got worse. So they just play the waiting game until each store is squeezed to death, then move another operator in at little or no expense. Anyone associated with Corporate Quizno’s should be in jail. Any advise on a good Ontario Law firm knowledgable on this mess or other options on exit strategies …or is bankruptcy the only way out?

  7. And such Potential says:

    Too bad they keep bitiing the hand that feed them……screwing with the same people who believed in their product……they are no Ray Kroc for sure!

  8. Contractor says:

    I WILL NEVER BUILD/BID ON A Q-NOS BUILD-OUT AGAIN

    RESPECTFULLY

  9. Heather says:

    Reading between the lines of anonymous’s bitter remarks sure hits a cord with me too. Starting with DAN DIMOLI setting the bait, complete with bogus Pro-forma financials, right down to the way the Canadian office runs. After DIMOLI hoodwinked enough people into the Quiznos ” death spiral” he takes off back to his Denver buddies, leaving one hell of a mess. The few ” honourable ” original office staffers are now long gone ( suppose they couldn’t live with themselves working within that corupt office environment) and the likes of YES men like MARK CHOY and GREG MACDONALD are left. What a shame that the Quiznos legal department is overworked screwing over their own franchisee’s , those that believed enough to put their money where DIMOLI and co. mouth is , instead of spending positive energy working with them to build a brighter future. Irregardless of the iron glad intent of the Franchise Agreement, I can’t think of another company so young and full of promise that is dealing with so many lawsuits and legal issues because of their blantant and excessive greed.

    Regards

  10. The King of Kickbacks says:

    Hi Heather; To comment further on your Greed theme;

    Seems the King of Kickbacks ( Quizno’s) are not content with their take from the up front fees, ongoing sales and misleading questionable advertising percentages…..
    . . . Kickbacks for their Real Estate( and many really poor locations ) – Kickbacks for their build-out materials – Kickbacks from their construction sub-contactors – Kickbacks from their restaurant equipment – ongoing kickbacks from all the food suppliers – etc; etc;

    when is enough, enough? …what a dishonest corrupt company !
    Racketeering is an appropriate legal word for just ” one” of their pending lawsuits

  11. anonymous says:

    Contractor wrote on May 16, 2007 @ 4:06 am:

    I WILL NEVER BUILD/BID ON A Q-NOS BUILD-OUT AGAIN

    RESPECTFULLY

    I have been offered to buy a quiznos at 50,000 its established its being sold as is no record showing of profits owner says he has been breaking even what do you think?

  12. Missouri quizno's complaint says:

    Any info on filing a class action suit against Quizno’s in Missouri? They took our $25,000 deposit and ran. No help on finding a location within 2 years. Any info on getting that money back?

  13. File a complaint w/the F.T.C. says:

    I could not agree more with the previous comments. I am also considering myself lucky to have escaped with $25,000 on the line, unlike many of the previous postings.

    I am currently seeking a refund of my franchise fee from Quiznos and in the mean time have filed a complaint with the F.T.C.

    The Federal Trades Commission mandates a 10 business day waiting period from the date that the potential franchise owner is given a copy of the U.F.C. before a franchise agreement can be signed.

    We first signed an agreement in October of 2006. The sales rep. gave us some explanation for dating all the papers with the next day’s date. He had overlooked one thing. We paid with a bank check dated with the correct date. This explains why a personal check was preferred over a bank check. Had we paid with a personal check, we would have been advised to predate the check and no one would have been the wiser.

    After reviewing our paperwork, the Quizno’s legal staff returned our check and we had to begin the process all over again. Unfortunately that should have been enough to send us packing, but we went ahead in December of 2006 and signed the agreement again. The sales rep. acted as though this was an inconvenience for us and to avoid it from happening again, he counted backwards the 10+ business days and used this date for us to sign the paperwork stating that we received the U.F.C. from Quiznos on that date. We then went ahead, most ignorant on our behalf, and once again signed the franchise agreement, this time leaving no paper trail.

    I have proof that the Quiznos Sales team conducts business in this manner with a copy of our first signed agreement and a copy of the bank check dated prior to the mandated 10 day waiting period. Regardless of the fact that the Quiznos legal staff has dotted their i’s and crossed their t’s, I believe this was common practice among the Sales Representatives.

    I have filed a complaint with the F.T.C. and was told that a fine of $11,000 per infraction could be imposed should there be an investigation. The surprising fact is that with all the negative press, allegations and lawsuits, Quiznos has yet (according to the F.T.C. rep.) to be investigated by the Federal Trades Commission, let alone fined for unfair trades practice.

    If you believe that you were mislead into signing the agreement prior to the 10 day waiting, please contact the F.T.C. to file a complaint. I believe that my proof should be enough to sustain probability on the behalf of others in the same situation.

    If you have a complaint of any nature in regards to Quiznos conducting unfair business, please file a complaint. It may not get your money back but it could help to hold Quiznos some what accountable for their unfair and deceptive business practices.

    You can obtain information for filing a complaint on the F.T.C.’s website: http://www.ftc.gov

    Also, below is a link to the franchise page.

    http://www.ftc.gov/bcp/edu/pubs/consumer/invest/inv07.shtm

    Please pass this information on. Thank you.

  14. Perry says:

    I’m not a lawyer, but I don’t think having a copy of a pre-dated bank check proves anything. For instance, I could get a cashiers check from the bank today for $25,000 and give it to somebody a month from now. The transaction would occur on the date I handed over the check, not the date it was issued to me. Good luck and post how your FTC strartegy proceeds.

  15. File a complaint w/the F.T.C. says:

    Perry, I am glad you brought that up.

    I think that all would agree, when you purchase a bank check or withdraw from your account it is at that time that you have decided to commit to follow through with a purchase or transaction. I do not know of anyone that would withdraw $25,000 of interest bearing revenue only to hold on to it to give to someone at a later date.

    This 10+ day waiting period is put in place to protect the consumer from making a hasty decision. A transaction, especially of this magnitude, considering the sales pitch, etc. needs some time to be thought through and the Federal Trades Commission mandates this waiting period just for that reason.

    For the sake of argument; your idea of purchasing a check and giving it at a later date, still only shows that the decision was made within the 10 day waiting period. The legal staff from Quiznos knows this and that is why they dissolved the contract, cashed the check and issued a refund check.

    I have a better question. Why is it that these transactions do not have to be notarized? Then both parties are protected. Whether mandated or not, I think that if Quiznos really wanted to prevent things like this from happening that these transactions would be notarized. F.Y.I. a sales person in the state of Massachusetts can not notarize a transaction due to the fact that they have something to gain from the transaction.

    Therefore leaving me with a fair and legitamate claim with the F.T.C. against the Quiznos corp.

    By the way Perry, do you work for Quiznos?

  16. Perry says:

    No. I own a small landscaping business. Best of luck with your litigation strategy. Cheers.

  17. Anonymous says:

    MY STORE WAS CLOSED DOWN LAST OCTOBER AND IT WAS REALLY A NIGHTMARE WITH QUIZNO’S.
    THOSE MOST WICKED PERSONS WHOM I WISH THEM TO ROT IN HELL ARE:
    MARK CHOY
    DEBBIE WARNER
    JULIE B
    SYLVIA (THE FEMALE VP)

  18. Bottom Fisher says:

    What problems did you have with them while shutting your store down?

  19. Hook, Line and sinker says:

    Anonymous.. can you give me some details on what Quizno’s did when they shut down your stores, as I may be in the same boat soon. Regards

  20. mr.duper says:

    I was lied to by a former salesman,J.J.Moran. He told me in front of my wife -”…three locations are within three miles of your residence.”

    Well once the bastards had my money-all locations offered were 30 minutes travel time from our residence.
    I turned down four stores.
    Not one of the ‘reps’ called me for months.Finally after numerous calls to the director of sales in my state I was told to find my own store.

    I found a five great possible stores.One was 800 sq.ft. larger then was required which was found suitable by me & the rest of the Quiznos morans.

    Finally I had a contract to sign for the store. The problem was they wanted to tell me I could only use the extra space for dry goods.

    So I’m out of my franchise fee of $25,000 but I may just fly out to corporate headquarters with my two friends,’Smith & Wesson’
    …if only I was that crazy.

  21. Bottom Fisher says:

    Does anyone have any recent statistics as to how many stores have been shut down by their owners? Any statistics on the percentage of stores which are currently unprofitable? Any info on how much marginal or unprofitable stores have sold for in the past?

  22. owner in texas says:

    Duper….

    Cut your losses at $25k. I left a good paying job because I was a moron also. I should have let the have the $25k with a big middle finger and kept my coporate job. If your not from the Middle East or Asia and enjoy working 7 days a week, I suggest opening a donut shop….at least you close at noon or 1pm. I found a lower paying job than I had before with a worse health plan and 401K…but at least I don’t own a Quiznos. The sales reps are a joke….. F U C K the Q

  23. owner in texas says:

    owner in texas wrote on July 12, 2007 @ 6:43 pm:

    Duper….

    Cut your losses at $25k. I left a good paying job because I was a moron also. I should have let the have the $25k with a big middle finger and kept my coporate job. Unless you’re from the Middle East or Asia and enjoy working 7 days a week, stay away. If you want to work 7 days a week, I suggest opening a donut shop….at least you close at noon or 1pm. I found a lower paying job than I had before with a worse health plan and 401K…but at least I don’t own a Quiznos. The sales reps are a joke….. F U C K the Q

  24. Bottom Fisher says:

    In doing some searches to get more info on Quiznos franchises I came upon an auctioneer’s website. These guys are in the Chicago area. They list their past auctions. In the last two years or so they have liquidated 13 Quiznos stores.

    To me, that means that 13 owners were unable to stay open AND they were unable to sell their stores for more than liquidation value which I would guess is pretty low.

    I’m still interested in following up on the idea of locating a distressed store, but the amount I would be willing to pay for it goes down the more I learn.

    If anyone has any info which they believe would help me, please be so kind as to post it.

    Thank you.

  25. SCREW_THE_Q says:

    SCREW THE Q. I WENT ALL THE WAY TO TOP TALKING TO THE SR EXECS. GOT NO GOOD ANSWER RATHER A 400+ PAGES OF AGREEMENT PAPERWORK THAT WILL WASH YOUR BLOOD THINNER THAN VAPORWARE. I STRONGLY SUGGEST NEVER DEAL WITH THEM. STAY AT HOME, WORK SOMEWHERE, BUT DON”T FALL INTO FRANCHISE (NEW OR EXISTING) TACTICS. YOU WILL BEARLY BREAK-EVEN AFTER SPENDING 7-DAYS A WEEK IN THE STORE AND GETTING ALL YOUR MONEY SQUEEZED OUT IN THE SUPPLIERS RACKETEER BY Q. IT IS A BAIT AND YOU WILL LOSE. YOU ARE BETTER OFF IN SLOT MACHINES RATHER LOSING YOUR SHIRT

  26. SCREW_THE_Q says:

    STAY AWAY FROM Q – LEARN FROM LESSONS LEARNED FROM ALL PEOPLE WHO’VE OPENLY SPOKEN IN THIS FORUM – Q IS A MAJOR SCREW-UP IF YOU LET IT HAPPEN TO YOU – DON’T BUY Q FOR A PENNY OR EVEN FREE AS YOUR LIFE WILL BE MESSED UP FEEDING THIS GODZILLA ALIEN THAT FEEDS MILLION DOLLARS OUT OF YOUR POCKETS. I GOT SAVED JUST BY RESEARCHING AND READING FORUMS LIKE THIS ONE AND OTHERS NOTED BELOW….

    http://www.small-business-forum.com/archive/index.php/t-4568.html

    http://www.toastedsubs.info/phpBB2/index.php

    http://franchisepundit.com/index.php/2005/04/10/what-a-quiznos-franchisee-makes/

  27. A friend in the U.S. says:

    Lisa wrote on March 6, 2007 @ 11:53 am:

    How about the new CEO. The broker selling the existing unit I was thinking of buying is sending me press on this guy. Anyone know of any good things he is doing? I am being told he has reduced supplier costs by 15-20% and has plans to lessen the menu to 22 sandwiches. Also work more with store owners. I don’t know if I can believe any of this. the franchise I was thinking of buying is practically being given away, literally. Too good to be true?

    A family member is about to lose in excess of 1/4 million after only three weeks of opening. He has basically been scammed and I was about to follow him. The model used by Quiznos does not work–period. I don’t even know how any store is still open. I think some owners went in with so much money upfront that they have managed to stay open for a while or found an incredibly good site and are turning a profit. However, the odds of finding a site that brings in at LEAST $15K is like a lottery ticket–and if you think about it–if you come in with $300K–well at 6% in the bank that would give yo about $20K in return WITHOUT LIFTING A FINGER AND NO RISK. Some owners, the successful ones, are just breaking even and breaking their backs 24/7. The part time help is in better financial status at almost any Quiznos.

  28. Joel Libava says:

    It is amazing that those folks that invested in Quizno’s as a franchise opportunity recently, didn’t hear about all the stuff that was really going on behind the scenes, This is a prime example of not learning about the proper research techniques to get the facts, before one invests!
    Joel Libava/Cleveland, Ohio franchise expert/consultant

  29. HoustonOwner says:

    I bought two quiznos franchise agreements about 2 years ago and I am interested in selling both of them for half the price. I am interested in finding people that were in similar situations in the past and how were able to get rid of their franchise agreements.
    Someone told me that I need transfer addendum. Is this true?
    Any help will be appreciated.

  30. Houston, We have a Problem... says:

    Houston, your problem with Quizno’s is the same in very corner of America. . . .. in fact Quizno’s is getting famous all over the world for their expertise in racketeering….. even in Canada the franchise Association has withstood years of harrassment and threats form their legal bandits but is close to getting their class action suit to court…….heard that in Windsor Ontario this week ALL the Quizno’s stores closed at the same time……… and look at the mess they left behind in Australia when they shut down all operations…leaving another continent in disarray….. what a track record…..what a company….! Maybe all the stores that are close to closing or hanging on by a thread should band together and ALL close together, all over the world – on the same date! That would mess up their legal experts for some time, or at least it would make a strong statement and get noticed on Wall Street. Let JP Morgan explain that to potential shareholders……….hit them where it hurts them!

  31. Richie Rich says:

    thank you for the information. you guys all saved me at least $25k

  32. Q Zee says:

    Richie Rich wrote on October 16, 2007 @ 5:33 pm:

    thank you for the information. you guys all saved me at least $25k

    More than that, with real estate and construction costs it’d cost you $300k+. Food franchises is a headache of business with employee management (theft, attendance, tardiness, attitude, etc.) and expensive insurance and frequent litigation (slip & fall).

  33. Indianapolis says:

    Ah, so THATS why its going for $39K!(The one I was looking at) Check it out:

    http://www.franchisebusinessforsale.com/franchises/index.html

    Quizno’s Subs #b-3326 For Sale
    Price – $39000; Business Location – Indianapolis North Side, Indiana
    This Is A Strong National Franchise With 4,000 Locations.

    Gross is $233321. Interestingly, no profit is listed. The worst part seems to be that they can open another one real close to you without you having any recourse.

    I asked the broker how long it had been on the market..5 months..”just reduced” in price.

    In closing I will add this: As of today, Oct.17th 2007 there are 354 Quiznos for sale on bizbuysell.com and 6 of those are under $40K. Four out of those 6 are listed as “undisclosed” as to their profitability. While there may be a handful of these restaurants that do stellar business, I think after much Internet research that these are the exception and not the rule,
    and i will look elsewhere for a franchise.

  34. Ripped off in Brownsburg says:

    We purchased a Quiznos franchise in 2004. We were told our restaurant would be open in approx. six months. We were never able to open the restaurant. The project manager told us we would receive a business plan cd to assist us in securing our long term financing. Quiznos never furnished the cd, without it we were unable to secure long term financing. We made an intial investment of $25,000 plus $1,450 lease review. When we told the project manager we couldn’t go forward without the business plan cd, he told us we weren’t getting our money back. That is the last we heard from them.
    Question: Is there anyone that has any success recovering their investment?

  35. Fucking Quiznos says:

    It has been night mare for us to have this crappy business. It is the worst night mare of my life.

    Do you know any buyer in Denver area?

  36. allen says:

    wild over wings is a small two unit franchise that only cares about themselves. I have had to put money in my unit every month for three years and have not made any money . I was the first frachisee and now I have been termintated for trademark infringement. They never invested a penny in my unit but now that want to take it. They are scam artists.

  37. Q'ed says:

    The Quiznos business is designed to suck the life out of franchisees and churn, churn, churn, until new suckers can be found. Q keeps the negotiated savings on food, paper, and supplies. By Q’s own numbers food costs were at 30% before the latest price hikes that included a buck a pound on Swiss and 40 cents a pound on roast beef. There’s no food co-op, no advertising co-op, killer giveaway coupons, and no transparency on how franchisee money is spent. Q doesn’t even keep the revenue from the 7% franchise fee. That’s been turned over to an investment bank as a return on its 49% investment in the company. That means Q only cares about how much food, ect franchisees buy, not what they sell. Don’t think that matters? Franchisees subsidize giveaway coupons for subs, soup, drinks, and chips. They make nothing. Finally, there is no territorial integrity to limit stores in a certain area. The reason? Q makes more with two stores hanging on at $6,000 a week than with one store doing $10,000 a week. Quiznos is scum. May Rick and Dick Schaden rot in hell.

  38. anonymous123 says:

    could somebody help!!! store sold to buyer and buyer not certified over one year.i am certified managing owner with 25% share only on paper.new buyer defaulted , franchise agreement terminated. quiznos suing me for lost royalties for term of 15 years. any advice? please help.Any laws to protect against this suit.

  39. anonymous123 says:

    got it

  40. quiz NO says:

    Hi,

    So sorry to hear everyone’s quizno problems.

    ANY advice at all on how to close a store?
    I’ve heard horror stories of Q corporate suing owners who walk away from their stores.
    Are they true?

    An owner I know has become permanently disabled and can no longer physically or mentally run his store.
    According to the agreement he must sell this store within 120 days, less the transfer fee.
    As you all know, THERE ARE NO BUYERS, and there is no one to run the store.
    This store is not profitable.

    How can this owner get out ASAP?

  41. Michael Corona says:

    I know how you can get out of it. A bullet to the head.

  42. anonymous says:

    When a store closes there is enough blame to go around including the franchisor. Everyone agrees that no one suffers more than the franchisee that made all the investment in time and money.

    But you can’t always blame the franchisor.

    Did you do your due diligence with your lawyer with regards to the franchise argreement? Did you contact other franchisees about their expeiences? Did you go to websites such as this one for more info?

    If you didn’t then take your lumps and move on. If you did and still feel misled, then also blame your lawyer, other franchisees and yourself along with the franchisor.

    In my experiences I agree that not all franchisors care about the well being of the franchisee as much as they should, but franchisees are not blameless. I have seen franchisees trying to sell their store give false P&Ls, over report sales to mislead potential buyers, offer franchisor reps cash to help the deal go thru, and outright lie to buyers. The same morally wrong things that franchisors are being accused of.

    For those of you with still open stores that you can’t sell that are money pits – why don’t you close? If its inevitable, then do it it now and stop sinking good money after bad. I know its a huge emotional step to close your store, but its the right financial one.

    I don’t mean to sound cold, but again when a store suffers its rare that the reasons are all 1 sided.

  43. Quiznos "Bad Idea for Franchisees" says:

    wrote on March 21, 2007 @ 3:59 am:

    duped wrote on March 19, 2007 @ 5:44 pm:

    DON’T DO IT….THESE PEOPLE ARE NOT ETHICAL AT ALL….I HAVE $250,000 REASONS TO BELIEVE THAT

    i don’t like drive-by postings…how about some details so your comments can help other?

    How about this for details: I purchased the rights for 4 Franchises in UT. . I was able to open 3 however I would have rather just write them a check for $500k and left it at that. I LOST it all. . I am joing the law suit. (My accountant after I was able to use my own and found a good one says. . it is impossible to make $ on these your food cost is too high. . He knows what he is talking about he owns 2 other food franchises himself, His comment “Quiznos is just out for themselves. . Sell NOW, it will only get worse”. . .

    The only ones that have a chance to make any $ on these are the ones that have the stores almost given to them. . then they still regret selling their souls the Quiznos. I have heard that the new CEO is promising but I was too far under by the time he took over. . .

    Quiznos corp has agressively squashed any free speach from websites “disparaging them” ie: TSFA (who is a trying to represent the Franchisee). .

    My suggestion is DO NOT OPEN a Quiznos. .It will just perpetuate their image. . YOU WILL CONTROL NOTHING you give them $25k for the right to pay them 11% of everything you earn or DON’T EARN. .with NO CONTROL over your own business. . better just go work for McDonalds. . at least at the end of the Week you get a pay check and possibly some benifits. You have ALL THE RISK the Franchisor has NONE but they have all the control. A LITTLE ONE SIDED (Sarcasm implied)

    Believe it or not it is comforting to know that I was not the root cause of the failure. . now lets see if I can get my life back on track. . .Thank God for a supportive wife

    Good Luck in your decision making

  44. Another Toasted Franchizee says:

    Whatever you do, absolutely positivly do not sign up with Quiznos

    This company is a scam, my sister is in New york and we both signed up at the same time. I thought she was lucky because she located a site fast while I was still looking. Turns out I was the lucky one. She now gets to work 80 hour weeks making less than minimum wage with zero return on the investment. They opened aproximately 30 stores in her area in New York within an 18 month period. Two years later, there were less than 10 remaining open. All the nes who closed lost anywhere from $200K to $400K in less than two years. Of the ones remaining open, most are at about break even (so essentially their work is free). Few are making a little… I mean very little!

    Well I was lucky and only lost $25K plus maybe another $5K in other expenses and a lot of time looking for locations. I feel fortunate that this is all I lost because the unlucky ones who actually opened a store mostly lost a lot more. I am not taking it lying down. i am initiating a lawsuit even if the cost will be equal to what I recover. A lawsuit will result in legal recording and a warning to others (hopfully they do more due diligence before they believe the lies of the quiznos reps). Also, keep in mind that the crooks in Colorado have an “exit strategy” and will try to sell the franchize enterprise or get aquired. By initiating the lawsuits, you will be blocking their exit strategy, or severly limit what they can get for it. Who whould pay a premium price for a frianchizor who is severly hated by all the franchizees?

    Lucky in California

  45. fred says:

    the stores are closing in my area. its a shame the fat cats at the top that scammed many people out of money and years of life/hopes will not be punished as they should be. quiznos is the enron of fast food.

  46. Starting to see the light says:

    I was presented with what sounded like an outstanding offer to buy a fairly new Quiznos at a great price (1/5 the cost of a new build out). The books looked good but more profit could be made if labor and food cost were better managed.Could this store be profitable or am I making a mistake?

    Thanks

  47. Anonymous says:

    Florida wrote on November 16, 2005 @ 5:56 pm:

    Has anyone else in Florida been screwed like the rest of us? If so…what did you do? I have a lot of money tied up (as we all seem to have)and have had no follow up! I am 16 months into this and still have no building…I have quit my job based on the BS timeline given to me and nothing! Who do we contact about this? Does anyone from the corp office even give a damn? What about the Pres/Founder? Is there some sort of support group for franchisees? Help!

    do not even open the it does not make any money do u know that 34 quiznos opened in new york in 2006 there are only 11 left a year later so do your home work i own store #3601 and i am tired of working for $0.00 3 years ago moved to tampa i would cut my losses now i have lost over $300K cash do not have a loan did over $400K in sales and still it does not work there are no profit in it.

  48. FMY says:

    Hi, I was thinking of opening Quiznos outlet and was very surprised to hear all these negative comments and news. I would like to know whether are there any franchisees here who are operating outside America. Would be very glad to hear your experiences and get any advices if I could. Thank you. Please do email me at fadhalina@hotmail.com.

  49. Anonymous says:

    We paid Franchise fee $25000/- in New Jersey in Feb 2004 and promised by Quiznos team to find us the real estate in the location we asked for and promised to help us with everything to open a franchise. We just need to pay the money for building the franchise store, equipment and rent as per their promise.

    It turns out they are all untrue, they never showed us any real estate to open a store in that location as of today(2/15/08). They do not want to return any part of $25000/-. We just received a letter from Quiznos asking us to sign a relieving letter to release them of all liability including joining any lawsuits that are currently pending in US District court for the district of Colorado. This is such a fraud, the management just want to steal the money from hard working Americans with empty promises. Many franchisees in NJ got cheated like this. Some of them filed a lawsuit and got part of the money back two years ago. Unfortunately, I did not get a chance to join them at that time.

    If you google on web, you will find lot of information on QUIZNOS that might provide an insight about Quiznos management greediness.

  50. Mike says:

    If anybody knows how to get my franchise fee back, please contact me at mhuie2000@yahoo.com

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