Top 5 Reasons to NOT Buy a QUIZNOS Franchise

Todays video was a viewer request so thanks
to Youtuber “Monroe” for asking to receive more information on why buying a QUIZNOS franchise
may not be a great idea. It’s no secret QUIZNOS has had some problems.
Multiple Lawsuits, flawed business model, SBA loan defaults, massive number of store
closures. With so many other options available it is strange that people still ask us about
buying a QUIZNOS franchise, but they do. QUIZNOS will tell you all the good stuff lets take
a look at some reasons you might not want to invest. According to their 2017 Franchise Disclosure
Document The cost to invest in a Traditional QUIZNOS Restaurant will range between $233,910
� $292,784. Your royalty will be 5%, or lower if you operate restaurants under the
incentive or multi unit plan. Marketing will be 2% of Gross which is also subject to a
reduction under certain circumstances. You will also invest in your local marketing co-op
which will be determined by your group. QUIZNOS has recently dropped their franchise
fee down to $10,000 in an effort to sweeten the pot and help recruit new franchisees and
in their defense they have tried to make positive changes to turn the ship around – but was
it a case of too little too late? #1 No Earnings Disclosure: QUIZNOS 1tem 19
in their FDD, which is industry speak for earnings disclosure, is blank so we don’t
have any indication of how individual stores are doing financially. That’s not necessarily
a bad thing, and franchise companies are allowed to choose whether to list financials or not.
But it is a bit of a red flag when we see this and generally if a company has strong
financials they will of course list those numbers in their FDD. Now in the absence of
an item 19 another way to find an approximation of earnings is to speak with existing owners,
whose names will be listed within the FDD. Not all will provide you with that information
but many will give you an idea. #2 Lawsuits: Pages 8 through 37 in QUIZNOS
FDD, 29 pages is nothing but lawsuits. Breach of contract, fraud, misrepresentation, fraudulent
inducement, 90 actions in total are listed in the FDD. QUIZNOS has more lawsuits than
most, if not all larger franchise chains. Many of the lawsuits allude to the fact QUIZNOS
had thousands of stores failing and did not reveal this fact to buyers. But buyers, and
we see this all the time, thought because so many people were buying QUIZNOS franchises
and their growth was so fast, it must be a great investment. That sheep mentality can
cost you hundreds of thousands of dollars so make sure you do more research beyond just
seeing a franchise opening a lot of stores. In QUIZNOS defense they seem to have greatly
reduced the number of lawsuits as of late, Let’s hope the trend continues. #3 Store closures. When we look at an FDD
we like to see manageable growth. That’s an indication that the franchise is growing quickly,
but not so quickly they are unable to support their existing franchisees. That’s why industry
awards like “fastest growing franchise” may actually be a bad thing for the franchise
buyer. QUIZNOS however has been hemorrhaging stores for many years. At their peak in early
2000’s QUIZNOS was up to 5000 stores. They closed 2000 stores during the recession, and
Item 20 in their latest FDD indicates 442 franchised stores closing in 2014, 333 in
2015, and 172 closing in 2016. That’s almost 950 stores closed in 3 years. Now for those
of you thinking “great I’ll buy a Subway” – well Subway closed almost 350 stores last
year as well. Food franchises, ladies and gentlemen can be a very competitive and fickle
market unless you are in a successful niche, and just because a franchise is visible on
every corner does not mean it will be a good business for you. #4 Bankruptcy. For what it is worth not that
long ago in 2014 QUIZNOS filed for Chapter 11, restructured and came out of bankruptcy
having reduced their debt by almost $400 million dollars. #5 The Spongemonkeys. Yes this was a
a long time ago but I couldn’t resist bringing it up. who approved this? This QUIZNOS marketing
campaign was shortly and rather discreetly shut down. The spot was allegedly supposed
to create interest in the 18-24 year old segment. In our opinion most 18-24 year olds can’t
afford QUIZNOS, and all they did was annoy a group of already annoyed franchise owners.
In fact some franchisees are reported to have put signs on their doors stating they had
nothing to do with the ads. QUIZNOS does seem to be making inroads in
other countries like Mexico, Europe and The Middle east so time will tell how that fares
for them but so far so good. We are looking forward to seeing QUIZNOS new FDD when it
comes out to see if things have stabilized since making changes. So is QUIZNOS a good franchise to buy? Have
they improved their business model and learned from past mistakes? That is a decision for
you to make but before you do make sure you research and compare other franchises, and
don’t be afraid to look at franchises outside the food industry. if you would like a second
opinion our consulting services are always free to franchise buyers. Don’t forget to like and subscribe and visit
our franchise directory of over 600 franchise opportunities – that link is above.

70 comments on “Top 5 Reasons to NOT Buy a QUIZNOS Franchise”

  1. Jamal Nasir says:

    This video is 5 years too late

  2. Jason Minshull says:

    I'm here because I wondered why only 1 Quizno's was left in my city of 350k where there used to be about 8.

  3. John Tim says:

    Can you make a video about GNC Livewell

  4. Barock Johnson says:

    This vid is 12 years too late LOL

  5. Lady Robin says:

    Subway sucks.

  6. Slash G&R says:

    I never had a Quiznos sandwich, but ate the Cobb salad. Very good!

  7. Steven Merrill says:

    What about Golden Corral and Waffle House franchises?

  8. Andy’s Retail Exploration says:

    Very informative!

  9. Andy’s Retail Exploration says:

    I got another request: IHOP!

  10. sunnohh says:

    Lol that ad is the only reason I like quiznos

  11. Ryan Daniel says:

    That commercial was hilarious

  12. Brad K says:

    1. Microwaved Pastrami. 2. Dead rats singing in commercial.

  13. Daytona Florida says:

    I will fully admit I am well past the "18-24" Demographic.
    But with that I have to say that has to be the most ill conceived and repulsive commercial I have ever seen.
    Did anyone at Quizno's even look at other restaurant commercials before coming up with that ridiculous advertisement?
    Restaurant commercials are intended to make you want their food by creating the most appetizing images possible for their menu items with " cool people" enjoying them.
    It also doesn't hurt to have high Production Values in its conception and editing.
    This attempt at advertising is simply beyond belief.

  14. I know you are right, And I just got owned but: says:

    Whatever happened to Blimpies?

  15. spturner360 says:

    Quiznos had the best commercials. They were innovative and funny.

  16. Quenton Plumlee Q plums says:

    If you do list type videos, your channel will grow. People love list videos. I been following most channels on YouTube for the past 10 years and the fastest growing channels consist of list and reasons to avoid something. Keep up the good work!

  17. cork6d says:

    Who actually closes these stores, corporate or franchisees?

  18. Jason's Storm says:

    I prefer Quiznos to subway. I once heard of a Quiznos store where the franchisee was totally absent. To the point where they had to take money out of the drawer to buy product at local stores. It was three months I believe until corporate stepped in and took it over.

  19. Christopher Castle says:

    Reasons not to buy a Strip Club?

  20. tim johnson says:

    I am in a city of around 400k and there are 2 Quizno's left

    I used to be a regular of one particular store going in around 4 times a week. Anyway I got to know the franchisee who always worked the till and over time I got to know him and one day he told me he made 35k a year out of his store, that includes his time working behind the cash register and all the other things a business owner has to do. My jaw dropped when I heard that, for that franchise fee he bought himself a minimum wage job!

    Anyway, he sold the store less than 2 years later (he had bought it from someone else). It sold 2 more times before it finally closed

    I got to know another store owner who also closed and owned an independent sandwich shop. He basically said he regularly suggested ways to improve store profits, but corporate refused to budge. Eventually when it came time to renew his franchise agreement he refused to sign.

    I can't see Subway being much different and I think its a brutal environment to make money considering the capital investment. I would stay away!

  21. Patrick King says:

    Always get financial statements and if you are buying a pre-existing business, whether a franchise or not, get copies of tax returns/transcripts for the prior 3 years.

  22. PickleRix says:

    Quiznos is another one of those sandwich shops that priced themselves out of the market. My boss used to love that place but he didn't have to live on a budget like me. The Quiznos near my work closed down a couple years ago because it was always empty. BTW, I tried a Firehouse sub last month and it was pretty darn good. The sauce that they put on the sandwich was different and tasted great but Firehouse subs is not real close to me so I've only gone there once.

  23. Markyellowcake says:

    Here in Las Vegas, they closed a BUNCH of locations here, over a dozen.  I thought they were ALL gone, but I actually saw one today.(new).  Poor bastards won't know what hit em.

  24. dalecs47 says:

    About 15 years ago I ate a sandwich at Quiznos, found it very good. I went back a week later and had a sandwich that was so terrible I NEVER went back and would never go back, not ever! Point being that if a single location can't maintain quality for even one week then there is something really wrong going on.

  25. working shlub says:

    number one reason …that terrible commercial with the singing cats..god awful

  26. Gerald Davis says:

    I would never choose such unhygenic look creatures for my ads

  27. vctjkhme says:

    Quizno's is the only one of the sub shops I actually like because they have a condiments bar and good sauce.

  28. only good communist are buried in forgotten graves says:

    Damn I miss them they had some GREAT sandwiches.

  29. George B says:

    In 2008 Quiznos was very popular on-campus, UL Lafayette, LA.

  30. Patrick Maloney says:

    I went to Quiznos once. Did not like the product.

  31. Patrick Maloney says:

    Request: What about Firehouse Subs

  32. Chris R says:

    Can you do a video on AAMCO?

  33. keecefly says:

    1. They suck
    2. They suck
    3. They suck
    4. They suck
    5. They suck


  34. P says:

    Quizno's is still a thing?

  35. William Curtin says:

    Too bad! I loved their food!

  36. and andrew says:

    Not interested at all in franchises, but I love the way this guy makes his points.

  37. JohnFx says:

    For a franchise company it seems odd that most of your videos are about reasons not to buy various franchises.

  38. jak p says:

    I’d say no to Quiznos. 1) there subs are burnt 2) the commercial is unbearable to watch 3) store closures

  39. Sam Peebles says:

    I like your videos, however, your face is over lit, and switching to b&w is annoying.

  40. PicklesRTasty says:

    I have never been to a Quiznos that was even remotely as busy as the Subway down the street.

  41. Sulfen says:

    I would never invest into any type of food stock much less food franchise. Taste buds change and it takes one trend to screw you over. Besides I always cool my own food.

  42. racetm says:

    I don't have any interest nor the means to buy a franchise but for some reason I find these videos really interesting. thanks!

  43. Ralph Valencia says:

    What should I name my strip club/ wings restaurant. Chicken Strips?

  44. frankaguilo says:

    Would be great to see a video on what you think of the Edible Arrangements franchise

  45. Adam Smith says:

    I think they were one of the first major sub chains to toast their bread. That commercial was annoying as hell and I'm not sure what drugs the creators were on.

  46. Commentor1 says:

    As a former customer, Quiznos sucks for the following reasons:

    1. Very stingy on portions
    2. Too expensive for what you get
    3. Nasty, expired food on occasion (sandwich was made with old, nasty, smelly mushrooms on more than one occasion)
    4. Store cleanliness (store by me had hoards of flies)

    I also got really sick after eating there once, but this could have been a fluke and not a chain-wide issue. Altogether, you would have to be a complete idiot to invest in a Quiznos franchise currently.

  47. DL Lambert says:

    I have eaten in a Q deli in about 12yr. Orlando Florida had about 10-15 in the 2000s but I think a few closed. The food is okay but nothing super. I liked the lobster salad sub but it did not seem like real Maine lobster. 🤔

  48. Rosie O'Kelly says:

    Do you record these videos in a bathroom ?

  49. Don G. says:

    Had one near work for a while. Went in and asked for turkey. They were out of turkey. Went back a couple weeks later. Still out of turkey. I asked the owner why he didn’t go to Publix and buy some turkey. Not allowed by Quiznos. I told him good luck building the business. He was gone within 6 months.

  50. Julio Cantu says:

    My mom and me went to Quiznos one time, and never went back. The food was too greasy, and we didn't like that.

  51. Krooked Detroit says:

    I worked at Quizno's at the beginning of the year.
    I made 4.85/hr cash and mgr wanted me to work 12 hr days 6 days a week.

  52. whiskers78753 says:

    I kinda liked that "Spongemonkeys" thing.

  53. Scott Gibson says:

    I prefer mom and pop restaurants in general.

  54. Flippyxtrne says:

    I'm surprised you guys haven't done a video about the problems franchisee's have expressed with Cold Stone Creamery. I gotta be honest, it's my favorite ice cream franchise, but they've shut out so many franchisee's I don't have any left within hours of my location.

  55. Tha Candy House says:

    5:51 Horrible

  56. Enel Dulcio says:

    LMFAOO!!!!!!!!!!!!!!!! That commercial was so hilarious!!!! Great and informative video.

  57. Josh Creator GALAXY says:

    I know because the Commercial is Freaky!

  58. Scott Knieve says:

    Actually they went from over 8,000 units to around 1100. That says it all. Dickey’s bbq is doing the same thing right now. It’s the nightmare of tomorrow.

  59. Chris Lemaster says:

    Hey what about Blimpie subs

  60. 15 Seconds says:

    I've only bought a single sub from Quiznos.. They were advertising a garlic aioli for their featured sandwich. This was a corporate ad, not something the franchisee scrawled onto a chalkboard sign.

    What I got was garlic butter spread onto a standard bun. If that's what Quiznos thinks is to pass as garlic aioli, their target market must be adolescents.

  61. Heath Cox says:

    Adjust your white balance. Good video though

  62. Bella Swan says:

    And it’s not mainly because of the Spongemonkeys nooooooooooooooooooo sir!

  63. Angelica Cushing says:

    No.1: Quiznos is gross.

  64. Jonathan Cisneros says:

    5 Reasons not to buy an airport.

  65. sminthian says:

    What's the deal with a "local marketing co-op"?

  66. John Saunders says:

    My reason is the counter person is crying and telling me about their dire financial problems under the tyrannical yoke of Quiznos, I don't want unhappy people preparing my food.

  67. excited box says:

    Actually Quiznos was everyone's go to sub when we were 18-22 until our local Quiznos closed down. This is of course 14 years ago. I don't know how subway survived though because everyone I know would go to quiznos and only for party or business catering would you order a sub platter from subways. I actually almost stopped eating subs altogether after I could no longer get my honey mustard chicken with bacon. The best part was being able to get extra honey mustard sauce at the pepper bar.

  68. excited box says:

    I think their downfall was greed. Forcing franchisees to buy their produce at inflated prices made them go broke. Quiznos had much better quality than subway but the mostly empty subway restaurants survived while the packed Quiznos did not.

  69. akvalues says:

    My brother almost bought one.

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