Quiznos franchise owners all over the world must be feeling a sigh of relief this week. That’s because their Denver-based franchisor was just saved. The Avenue Capital Group out of New York just stepped up and invested $150 million to prevent the chain from having to file bankruptcy.
The beleaguered sandwich chain has been struggling for years; franchisees all over the US have had to close their stores–and go out of business.
Franchisee anger and resentment reached an all-time high a couple of years ago, which culminated in a class action lawsuit against Quiznos corporate. Read this franchise blog post to see how that turned out.
This huge infusion of cash, as important as it is, really isn’t about Quiznos, though. It’s about The Dream. Thousands of people took out their checkbooks and courageously wrote $25,000…$50,000 franchise fee checks to Quiznos, and in return expected Quiznos to provide superb training, a great product, and corporate support. Instead, they found themselves in a constant struggle with the management team at headquarters over things like pricing and marketing.
One Other Thing
There’s one thing in this mess that angers me the most, and it has to do with secrets;
Most of the people in the franchise industry were aware of the problems at Quiznos, but few spoke out.
In 2006, a publication famous for ranking, “The Top Franchises” named Quiznos the #2 franchise. That probably didn’t help matters. I wonder how many people bought Quiznos franchises based on a ranking….as opposed to doing real deep franchise research.
Quiznos didn’t rank very high in this recent “Top Franchises,” article, but maybe they will in the near-future.
A gentle tip from The Franchise King®:
Do not buy a franchise until you know EXACTLY how to do thorough research.
Learn how here
I hope so.
Do you think that Quiznos will make it?