Quiznos
Quiznos offers franchises to operate submarine sandwich restaurants serving various sandwiches, salads, and soups. Known for its customizable subs, Quiznos operates in traditional and non-traditional locations across multiple industries including quick-service restaurants and food service establishments.
About Quiznos
Quiz Holdings, LLC, doing business as Quiznos, is an American franchised fast-food restaurant based in Denver that specializes in offering toasted submarine sandwiches. It was founded in 1981 by Jimmy Lambatos and sold to Rick and Richard Schaden ten years later. It then grew to nearly 5,000 restaurants; by 2013, Quiznos was the second-largest submarine sandwich shop chain in North America, behind Subway. It filed for bankruptcy in 2014; by 2016, it had dropped to ninth place, and the number of Quiznos locations in the United States fell from a 2007 high of 4,700 to just 400 a decade later.
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Quiznos franchise FAQ
How much does it cost to open one — the total initial investment?
The total estimated initial investment to begin operation of a single QUIZNOS Restaurant ranges from $220,600 to $611,000. This includes an amount between $33,000 and $35,000 that must be paid to the franchisor or affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee is $5,000 when you sign the Franchise Agreement. This fee, along with the Initial Support Fee of $25,000, is fully earned by the company upon receipt and is not refundable under any circumstances [p.16].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of the total Gross Sales generated from or through the QUIZNOS Restaurant, as detailed on [p.72]. Advertising fees are collected monthly based on a percentage of franchisee gross sales, used for promoting brand awareness including marketing material creation and website development, among other purposes, as explained on [p.144].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreements is typically 10 years, with an option to renew for a fee or transfer the franchise agreement to a new or existing franchisee. [p.143]
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot transfer ownership of your franchise before the QUIZNOS Restaurant opens. For transfers after opening, the franchisor must determine that you are in full compliance with the agreement and meet other standards. The proposed transferee also needs to be of good moral character and meet Franchisor's applicable standards for franchisees. [p.88] Good cause can include non-compliance or failure to meet these conditions. [p.6]
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.222]. However, under Virginia law, terminating a franchise without reasonable cause is unlawful [p.227], and the franchisor must provide written notice at least 90 days in advance of termination or cancellation, with a 60-day period for the franchisee to correct any stated issues unless immediate action is required due to an urgent matter [p.217].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive or protected territory. According to the FDD, you may face competition from other franchisees, company-owned units, and competitive brands controlled by the franchisor [p.42]. Additionally, signing a Multi-Unit Development Agreement does not provide any additional protection in terms of territorial exclusivity [p.11] [p.122].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that includes paper-based and digital tools, e-learning platforms, virtual, and traditional classroom settings [p.36]. This training is mandatory for the Designated Operating Partner and the Designated Manager before operating a QUIZNOS Restaurant [p.74]. Additionally, ongoing support includes updates on menu items, preparation methods, business trends, and system standards [p.78]. The franchisor may also require additional training if performance standards are not met or if they determine it is necessary [p.74].
How many franchised outlets are there, and how many have closed or been terminated?
Based on the provided excerpts, as of December 31, 2023, there are 47 franchised Taco Del Mar Restaurants in the United States and 13 outside of the U.S. [p.10]. However, the number of franchised outlets that have closed or been terminated over the last three years is not specified in the excerpts. [p.5]
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information if there is a reasonable basis for it and it is included in the Disclosure Document. However, they do not make representations about future financial performance of franchisees or past performance of company-owned or franchised outlets [p.52]. This isn't specified in the excerpts regarding whether such information is shared; it only states conditions under which it might be provided if available.
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling only the products authorized or specified by QUIZNOS [p.48]. You must purchase or lease items from vendors or sources authorized and/or designated for the QUIZNOS System, with some items potentially being sourced from a single authorized vendor or your franchisor's affiliates [p.27]. This includes supplies, ingredients, equipment, and other items used in operating your QUIZNOS Restaurant.