Franchise Pundit franchise opinion and research

This article is a few months old, but makes for a good reminder: The suit alleges Quiznos forces franchisees to buy food and supplies from the parent company, or its affiliates, at inflated prices, but sets artificially low prices for its products. That strategy makes stores unprofitable for franchisees, according to the suit. The franchisees further allege Quiznos unlawfully sells ... Read More »

A Quiznos franchisee discusses why he is dumping his 3-year old franchise in favor of opening his own restaurant at the same location: “Over the years, the cost of operating has gone up to the point where it’s not profitable, and it actually has never been profitable,” he said. “The business model is just too expensive and advertising fees have ... Read More »

BusinessWeek documented Bhupinder “Bob” Baber founding of the Quiznos Subs Franchise Assn and its litigation soap opera.  The independent franchisee associations of Diary Queen, Subway, and few others are also mentioned along with their individual legal battles with the franchisors.  For example, Dairy Queen franchisees litigated over the new DQ Grill ‘n’ Chill concept, and Subway franchisees litigated over a ... Read More »

Personally, I prefer the Pepperblue Steak Sandwich from Panera Bread. Several chains introduced new beef sandwiches: But it was the beef sandwiches that debuted in 2006 that seemed the most inventive. In February, Quiznos introduced its Prime Rib and Peppercorn Sub, followed by its Prime Rib Cheesesteak in September. Subway rolled out two premium steak sandwiches of its own, the ... Read More »

More biting accusations from 28 Quiznos franchisees in this class action in Wisconsin. Here are some excerpts: Quiznos Sub forces its franchisees to buy food and supplies from the company or its approved vendors at unfair prices and sets retail prices too low for the stores to make a profit, according to a lawsuit filed by 28 operators of Quiznos ... Read More »

Another group of franchisees accuse Quiznos of fraud: A group of Quiznos franchisees have filed a class-action lawsuit against the Denver sandwich chain in U.S. District Court for the Eastern District of Wisconsin. The lawsuit alleges that Denver-based Quiznos has “systematically defrauded its franchisees in a scheme designed to build the brand at the expense of its operators in the ... Read More »

Interesting article in the Dallas Morning News highlighting common “disagreement” points between franchisees/franchisors. This week, Pizza Inn Inc. said it is being sued by former franchisees who say the company, based in The Colony, “intentionally and negligently misrepresented development and operation costs.” Subway parent Doctor’s Associates Inc. faces two lawsuits filed this summer stemming in part from a fight for ... Read More »

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I came across a few franchsies that I would not want to own: Snack-In-The-Box: UK based firm that delivers candy to the workplace (difficult to work and sell) Nick-N-Willy (founded by former Quiznos exec)/Take-and-Bake: this take-and-bake pizza idea where cusotmer get the raw dough with toppings didn’t catch on 10 years ago, and won’t catch on despite some short-term success ... Read More »

Quiznos is facing more class-action lawsuits over delays in getting locations approved for its franchisees, and keeping their $25,000 franchise fee. More from the Denver Post article: The case alleges “deceptive business practices” in the company’s franchise sales method and demands that the company stop selling franchises in New Jersey until all existing franchisees get locations or are refunded their ... Read More »

Quiznos Sales and Profitability.pdf “former owner”, a commenter on this site, left a tip on a document posted at the Toasted Subs Franchisee Association. The document purports to be a summary on Quiznos store profitability. Is it legitimate and accurate? I have no idea, but it’s probably in the ballpark. It’s apparently based on estimates gathered by franchisee sources reporting. ... Read More »

I was surprised to learn from this article that Quiznos pays commissions to its Florida outside real estate firm, Kotis Properties, to sign up franchisees. Possible conflict of interest? In addition to helping find sites, Kotis Properties will also be helping Quiznos sign up new franchisees. It seems this sales practice, along with high pressure seminars, is becoming more common ... Read More »

There are some good Quiznos comments and debate about what are appropriate expenses. CLICK HERE to see it. read more Franchise Pundit posts on Quiznos… Read More »

VERY OUT OF DATE.  Do a search instead.  This was manually updated March 21, 2006 Companies Mentioned in Posts (likely incomplete):Automotive 1-800 RADIATORS Oil Butler Lube N’ Go On-Site-Lube Business & Home Services 1-800-WATER-DAMAGE Bartercard Garagetek Help-U-Sell Home Instead Homewatch Caregivers My Girl Friday PropertyGuys.com Sears Carpet & Upholstery Tax Centers of America Cleaning & Maintenance none Computer & Internet ... Read More »

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, ... Read More »

I pulled together some numbers of required royalty and advertising fees for sandwich franchises: Required Royalty and Advertising Fees for Sub & Sandwich Franchises Subway 12.5 % Quiznos 11 % Mr. Hero 10.5% Blimpies 10% Jersey Mike’s 10% Philly Connection 10% Togo’s Eatery 10% Zero’s Subs 10% Firehouse Subs 9% Jerry’s Subs and Pizza 9% Burger King 8.5% Charley’s Grilled ... Read More »