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Franchise Blog

Quiznos Franchisor Pork May Be Imploding the System

  Frank Berger  |    Feb 23, 2014 7:03:47 AM  |    Founders Blog,  |    Franchise Opportunities

My local Quiznos Closed

I really enjoy Quiznos, and I was disappointed when my local Quiznos shut their doors. At its peak Quiznos was serving tasty submarine sandwich’s from 5,000 units & now the chain is down to 1,500 domestic & 600 international locations. It is disappointing to learn that franchisor policies may be the root cause of my current need to brown bag lunch.

According to New York Post newspaper reporter Josh Kosman:

“They had a good product for a while and were giving Subway a real run for their money,” Steinberg said, with Quiznos being the first to make bread specifically formulated for toasting.

“The problem was [that the previous owners] were pigs,” overcharging the franchisees while at the same time getting rebates from suppliers, he said.

Some of Quiznos franchisees are furious over being required to purchase food from vendors with hidden marked up prices, as reported by the Denver Post. Three years ago Quiznos settled a class action suit with its franchisee’s over similar issues.
If what these franchisees are claiming is true, Quiznos will have a long road ahead of them repairing the goodwill lost with it’s franchisees. Rule number one in franchising is the franchisor doesn't win, unless the franchisee wins first. Makes sense to me, how about you?

Not all Franchisors Accept Kickbacks

You’ve Got MAIDS is a Cleaning Franchise that earns zero revenue from vendor markups, and it’s not because the vendors don’t offer rebates; believe me, they do! When offered a 5, 10 or 25% kickback from vendors for our Franchise Partners purchases, we thank the vendor, and then ask them to lower the price to our Franchise Partners by that amount. It’s the right thing to do.

 

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