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What The Heck Is The Embattled Quiznos Franchise Doing?


D Y S F U N C T I O N A L ;

(This post may contain affiliate links. Please read my disclosure policy).

Impaired or abnormal functioning. Abnormal or unhealthy interpersonal behavior or interaction within a group. (In a franchise environment)

Group = Franchisees

Within Group = Quiznos current, ex, and current (again) execs.

Where should I begin?

The Embattled Quiznos Franchise

Dysfunction Level #1

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Let’s start with the fact that in February of 2009, Rick Schaden, Quiznos’ founder and largest shareholder, resumed the role of chief executive after the resignation of Dave Denot. Schaden wasn’t exactly a hit with the franchisees, when he left last time. He comes. He goes. He’s baaaaaack.

Dysfunction Level #2

Did you know that in 2007, Quiznos was sued for selling 3,000 franchises that never even opened?

They’ve been sued many, many times, before, by their own franchisees. For things like “operating a prolonged deceptive business practice that has been carried out since 2000.” Operators allege that the franchisor induces unwitting prospects to purchase and operate Quiznos sandwich shops and pay franchise-related fees. Quiznos has also been accused of implementing slick sales tactics and marketing the American dream of business ownership in what was referred to as the fastest growing franchise in the United States.

Early in my franchise career

When I was attending franchise consultant training back in 2001, one of the other gentleman that was also there to learn franchise consulting happened to be an area developer for Quiznos. Later that day, someone else in the class approached me, and told me that the guy didn’t exactly have a stellar reputation. As a matter of fact, he was considered scum. Nice. (In the months that followed, I was told that lots of area developers for the Quiznos chain were rather slick, and I never heard anything positive about the franchise ever again.)

Here’s the thing; There’s always a couple of stories that are reported on about a company.

One is usually from an industry writer, who knows the in’s and outs of the particular business type. Good stuff.

Then there’s the story that’s told (eventually) from a company insider, or in this case, a bunch of franchisees. Good stuff. The real deal. The real story.

Almost 10 Years Now

In the almost 10 years that I have been in this segment of franchising, I cannot recall one time in which Quiznos was mentioned in a positive light. Not one. Ask anyone inside the franchise industry what their opinion of Quiznos
is. Go ahead.

Dysfunction Level #3

There’s a special website set-up for one of the big class-action lawsuits.. for the folks that want to collect. How many franchise companies have you heard of that get to be under the spotlight like this. It’s special.

Now, just because I think that Quiznos appears to be a little dysfunctional, doesn’t mean that it is. You can decide on your own if Quiznos is a dysfunctional franchise business. There’s plenty of information around.

The real reason that Quiznos is opening 600 “Company Stores

In my opinion, the real reason that Quiznos has decided to go with company stores this time around, is that they just don’t have the money or inclination to fight with angry franchisees anymore. They can control company stores better. (I wonder how many franchise salespeople from Quiznos have been downsized?)

Two questions;

1. Do you know any current or ex-franchisees of Quiznos? If so, do you know how they feel about the company?

2. Do you think Quiznos will succeed with their new business model? (Or will they have to use OPM, and start selling franchises by this time next year?) OPM = Other People’s Money

Comments are now open.

One more thing; How many current or former franchisees who are experiencing the joys of litigation, currently, could have saved themselves some grief by just doing some really thorough franchise research?

do thorough franchise research

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joel libava

I'm The Franchise King®, Joel Libava. I help prospective franchise owners avoid bank account emptying mistakes. For over 20 years, I’ve been showing people how to make smart, informed decisions on franchises to buy, and I can help you, too!
P.S. I'm not a franchise consultant/broker.

“I've been a fan of Joel's for years. He's picked a niche and made himself the undisputed expert. I'd recommend him to anyone looking to start a franchise. "
- Gene Marks, Business Expert, Keynote Speaker
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