Quiznos Franchise Costs

Quiznos started franchising in 1981 and quickly established itself as one of the nation’s premier sandwich franchises, boasting an extensive global network of locations.

Franchisees must be prepared to make an extensive initial investment; starting a traditional restaurant typically costs anywhere between $211,859 and $326,549. This figure encompasses architectural needs, equipment purchases and initial food orders among other expenses.

Franchise Fee

Quiznos was an industry giant with 4,700 locations and total system sales of $1.9 billion by 2007. But its total system sales had dropped dramatically during the Great Recession; many franchisees sued to protest low royalty rates and rising food costs; Adage reports.

Quiznos franchise fees start at just $30,000. In return, franchisees receive brand support infrastructure, training programs and ongoing assistance with marketing efforts, menu innovation and research and development.

Although franchisees can expect national advertising support, each location must carry out effective local marketing for their business to increase brand recognition and generate initial customers. We advise reviewing your local area as well as talking to existing Quiznos franchise owners in your market regarding their experiences with local marketing efforts.

Leasehold Improvements

Quiznos offers many attractive features, from its internationally acclaimed brand name and image, to the years of experience amassed by its central management team, but some franchisees are questioning if Quiznos remains viable as a Denver-based company. Franchisees allege excessive supply costs as well as food charges associated with operating Quiznos franchisee locations.

Quiznos franchisees have experienced significant costs related to franchise fees and have filed suits against the company over these costs, with some filing lawsuits or suffering significant financial losses as a result of these costs. Still, Quiznos has made positive changes, such as decreasing its initial franchise fee from $30,000 to $10,000.

As well as paying the franchise fee, startup expenses for your restaurant will include furniture, fixtures, and renovations. Your specific costs will depend on its location and construction; for instance, traditional restaurants located within malls or strip centers typically incur more costs than standalone buildings. Franchisees are also required to cover a percentage of sales tax in their territory – typically 4 percent – which should be included as part of their startup expenses.

Grand Opening Marketing

Quiznos offers various marketing channels to assist new businesses with the launch of their businesses, from local radio and TV ads, newspaper print media, digital ads and other tools – and costs will depend on where your location is situated.

Early marketing campaigns of the chain featured “Baby Bob,” an animated talking baby who would act as their spokesperson and target men between 18-24, who made up its typical customer base at that time.

Since then, Quiznos has adjusted their advertising tactics to highlight their quality sandwiches made with fresh ingredients and reduced prices, offering coupons as incentives to bring customers in the door. Quiznos hopes these changes will result in improved customer retention and increased sales; as well as improving its service and employee experiences – by restarting Round Table meetings with franchisees and investing in improving staff skills that boost employee morale; these changes should benefit customers while helping maintain its high-quality sandwich reputation.

Furniture and Fixtures

Quiznos franchises typically require an initial investment between $211,850 to $326,549. This estimate covers the franchise fee as well as all initial costs such as furniture, fixtures, equipment, utilities and miscellaneous supplies; Grand Opening in a Box expenses; payroll (but excluding any draws or salaries for yourself); payroll administration expenses and any start-up expenses.

Quiznos was one of the nation’s premier fast casual chains until the recession and increased competition caused sales to decrease precipitously. Quiznos filed for bankruptcy protection in 2014 before ultimately being sold off to private equity firm High Bluff Capital; later it merged with REGO Restaurant Group (who run Taco Del Mar).

REGO is currently seeking to revitalize their brand and Mark Lohmann, president of REGO has created a prototype Quiznos store with free Wi-Fi access, drive-thru service and new menu items such as French Fries. He plans to open their first new location this summer; Lohmann encourages potential franchisees to do their research prior to making any decisions regarding franchise opportunities.

Royalty

As well as paying the franchise fee and build-out costs, royalties must also be paid to the franchisor. They are fees collected from your sales to cover marketing expenses, R&D expenditures and ongoing support – these payments typically constitute a percentage of gross sales.

Quiznos seeks in their application a range of skills and attributes from potential franchisees, such as management experience, strong customer service skills, desire to succeed and an understanding of the restaurant industry. Furthermore, they emphasize working closely with their local community as part of this commitment to support it.

Quiznos was established by Jimmy Lambatos and Todd Disner of Denver, Colorado in 1981 as an oven-baked and toasted sub sandwich shop chain specializing in oven-baked and toasted sub sandwiches. Today it ranks second largest sandwich shop chain in North America with 1,500 locations worldwide; plus legal disputes, bankruptcy filings and the closure of numerous locations domestic and internationally over time.