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Quiznos Trail Of Tears

Maine is simply a microcosm of the entire country. The irony is that former CEO Rick Schaden is still in the franchising game as the primary investor and behind the scenes influencer at Smashburgers. As the architect of the Q-scheme and his 123 Fitness debacle Schaden put thousands into bankruptcy. How anyone gets involved with any Schaden owned, run, or financed franchisor after reviewing his track record defies belief.

Keith Miller's picture

Industry Problem That Needs Correction

It seems that many in the franchise industry know that Quizno’s has problems.  Even those that normally support franchisors have spoken out against the chain.  Steve Rosen, Chairman Emeritus of FranNet, when testifying in Pennsylvania on behalf of the opposition to HB-1620 stated, “we came to the conclusion that the business model didn’t work, and as a result of that, we decided that we weren’t going to get involved in representing Quiznos”.  Yet the question remains, why does the industry resist any changes that may provide better disclosure that helps prospective franchisee?

If you step back and look, thousands of individuals have invested (please note, I am not calling them investors, partners, or any other legal term) probably $150,000 to $300,000 per outlet and two-thirds of them have lost their investment, and maybe more.  In other industries requiring substantial investments and when such a large percentage of people have lost that much investment, the sellers often have to defend themselves against criminal charges.  Yet in franchising, the seller is often suing the people that have lost their investment, demanding even more money.  It’s not just Quizno’s, we hear similar stories from Cold Stone franchisees.  While this may currently be legal, having franchisor advocates providing cover or ignoring these situations long term will damage the franchise industry.  It’s just not right, and it’s unacceptable.

Quiznos lack of ethics, abundance of greed, destroy lives.

What more can be said about the destructiveness that Quiznos has dealt thousands of franchise owners lives. Marriages destroyed, life savings destroyed, and suicides have not changed the way this company operates. They are willing to destroy the last surviving franchise owner to get whatever money they can squeeze out of them.

How does a company get away with this? A franchisor has a "duty of good faith" written in many state laws and certainly there should be some sort of accountability to hold the executives of this company accountable for their lack of good faith.

I would love to see the US attorney general or some other agency step in and put an end to this on-going theft of money from franchise owners. Unfortunately this will not happen and owners who have money will continue to file lawsuit after lawsuit against this evil organization called Quiznos.

RICH GETS RICHER AND GETS AWAY WITH IT

I hate quiznos corporate.I am also another franchisee victim.I can add alot more on them but no use. just few words..... I was debts free before join quiznos, today I am smile free....... stress and debts are left in my life ..........Thanks QUIZNOS

Ed Teixeira's picture

Gut Wrenching

A great article by Janet captures the Quiznos story from a human perspective. Several years ago I was approached by a Quiznos franchisee on LI who was looking to sell his franchise. He had invested over 250K and was still bleeding cash. After I reviewed his financials I told him the bad news that his only hope would be to find someone who might pay 50K with the expectation that they could salvage the operation. This episode clearly indicated to me just how flawed the Quiznos franchise was. After 35 years in the franchise industry I've seen my share of flawerd franchise programs,however, this one takes the grand prize. Unfortunately we could see another flawed franchisor like Quiznos that sells franchises as fast as they can while promoting a terrible franchise program and all the while getting kudos from the media for so called outstanding growth.

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