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Quizno’s Franchise Review

Quizno’s Franchise Review

About.com Rating 3 Star Rating
User Rating 1 Star Rating (2 Reviews)

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This 26-year-old company has been heralded as having some of the best food in the fast food industry. Last year, franchise owners sold over 17 million Classic Italian subs, alone. Quizno’s franchise combines chef-inspired food using high-quality ingredients and utilizes a $90 million per year marketing budget. Quizno’s, the original pioneer of oven toasting, also offers signature soups and fresh salads. For reduced risk and a proven business model, Quizno’s ranks high.

Background and Benefits

When you think about a Quizno’s restaurant franchise, think ratings. In 2007 Quizno’s raked #1 in service by the MSPA, rated in the top 5 in Zagat for food and service, and rated in the top 30 of all restaurant chains. In an article on finding success in franchising, the Wall Street Journal recommended investing in known brands because of name recognition and proven support. Fast food is one of the safest investments because it is a necessity of life--a recession proof market that requires no disposable income. Good fast food has a real advantage in the industry and statistics show that when given the choice 70% of most people prefer subs over burgers.

With their advertising presence second only to Subway, Quizno’s has the marketing support you need. But we did find an issue with the company that has yet to be resolved. Over 5000 franchisees allege that Quinzo‘s violated the Racketeer Influenced and Corrupt Organizations Act (RICO) by supposedly making franchisees pay for food and supplies at inflated prices “concurrently setting artificially low retail prices for its products” that causes franchises to be unprofitable. Still, RICO violations are difficult to prove and we are taking the wait and see approach.

How Much Does a Quizno's Franchise Cost?

You have to have $70,000 to get started and a minimum net worth of $125,000. Quizno’s University Training starts with a self-study program you do at home followed by 18 days in a regional training store and 6 more days at Quizno’s University headquarters in Denver. You have to meet certain credit standards as well as pass the Quizno's Competency Test. Cost of Entry runs between $185,450 and $264,950.

Pros

  • Ranking – Ranked No. 1 Service, and in the top 5 for Food and Facilities in 2007.
  • Extensive Advertising – Quinzos is second only to Subway in Advertising and provides National and Local Advertising for each location with better than normal Branding Support.

Cons

  • RICO Violation – alleges that franchisees are paying for food and supplies at inflated prices

Quizno’s Franchise Information

Business Established: 1981
Franchising Since: 1981
Start-up Cost: 0 to $70,000
Total Investment: $185,450 to $264,950

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