SUBWAY Franchise Complaints

Subway franchise owners are invited to share their complaints and frustrations, as well as advice for prospective Subway franchise owners, below.

Anonymous comments are encouraged, and all email addresses and other information is treated with strict confidentiality.

Around the Internet, complaints have arisen from many Subway franchise owners who feel that they are being victimized by their franchisor, and by founder Fred DeLuca in particular.

Ex-Subway franchisee Jim Eddie claims “whole subway system is a scam,” and called his time as a Subway franchise owner “the worse year of our life.”

Another Subway franchise owner writes “Subway use to be a great opportunity for all but now it’s like doing time each and every time I walk through my doors…”

Subway franchisee Debra claims “subway ownership is hell on earth.”

Here are some comments posted on the Complaints Board website:

ConcernedSubwayOwner wrote:

I was a 3 store owner with Subway. I was franchisee of the year for my region. Then our Development Agents changed and with in 14 months I was forced to sell all 3 locations because I was all of a sudden considered a bad operator. All the while, my stores out performed the market, and the stores of my new Development Agent. In a period of 14 months over 40 stores in our Southern California Market were flipped. All were forced to sell due to "compliance" issues. Most of the stores were above market average. The new Subway Development Agent, the Marwaha Group, in its role of Development Agent has the responsibility to do the Compliance Inspections. Interestingly, they or their immediate Family members were the only approved "buyers" in the 40 locations that flipped.

When Subway Corporate was questioned, the response was that the old Development Agents (who were DA Market of the Year in 2001), Subway Corporate said that the old Development Agents were scumbags, lazy, etc.…  Subway was not only aware of the problems, but actively condoned the following potentially ilegal behaviour: Price Fixing, Racketeering, Fraud, and Forgery…

doingtime wrote: 

… I was told by my business consultant that all of the "twenty year" people should very worried about our stores. That Fred Deluca and his cronies want us out so they can turn the stores over to make money on the start up costs. He suggested that I start keeping a journal about my inspection experiences, which by the way have gotten horrible. They are so bad that I have started to video tape my stores after each inspection to protect myself.

I have a couple of stores that do way, way over the territory average in sales. Fred makes a lot of money off of me in royalities every year. So instead of giving me a pat on the back and a "good job" I get this… You have syrup on your trash can, the handle to your toaster oven has sauce on it, the pvc pipes under your three bain sink has dust on it, your microwave is dirty your bathroom smells, there are straw wrappers on your floors, etc… all of this during a lunch time where the customers are line up into our parking lot!!!

…It is not enough that I work all day everyday, that I have higher sales than most others in my territory, that my customers go up to this twit as he sits in my handicapp seating typing crap that he is making up half the time, telling him that my stores are the best that they have ever been to (by the way he doesn’t mention that in his report). What he does mention is that my places are dirty and marks me out of compliance. I then get a letter from the legal department threating to take my stores. I for one am sick and tired of it. I’m stressed all the time.

Way back when Subway use to be a great opportunity for all but now it’s like doing time each and every time I walk through my doors…

debra wrote:

Owning a subway. They don’t even use the Vaseline when they screw you. They do want to ditch u at 20 years. They are killing me literally health wise. U can never keep them (subway world headquarters) happy… Subway world headquarters in Milford conneticut owned by Fred Deluca, makes it impossible for Subway owners to even break even with THE $5 ft. Sub, let alone certificates & coupons added on it.

…owners work 7 days a week, r exhausted n r constantly harassed by Subway, they r punished to the point where we either die of subway-itis or they take everything we worked for away.

… So if u now made the mistake of buying into " the #1 Franchise" I also advice, get a good attorney on retainer to read the phone books of information u r required to read. Get a good doctor, because they run u to the ground until u r dead or take that store away, n give u nothing for it while they resell it for $250, 000.00 Minimum. You DAI & Fred Deluca r the ones making money.

I wish I never got into Subway, I hate this company, I don’t have long to live according to my Doctors, thanks directly to the stress subway world headquarters, their arbitrators, their inspectors n their little spools that come in at busy lunch time with their laptops, praise u verbally, but are required to write you out of compliance. That is a fact… They r trained to do that…set u up. Just ask any ex-inspector.

…They have ruined my family life my health and are destroying, annihilating my stores knowing im to weak to fight back, so, here it is. No retirement, no health insurance because we are self employed & due to the stress from Subway the doctors concur i have less then 1 year to life.

So hey Fred, see u in hell, u cant n wont take it with you, you lousy ba$tard. Your no italian, your a pig! Keep having your little spies do their thing, your gonna rit in he’ll for what you have done to franchisees and the deception to the customers. Hey, why don’t you shove one of those $5.00 subs up your arse.

Also those defending Subway. They are liars. They are totally lying. In the name of God & all that is Holy, they are lying. subway ownership is hell on earth. No wonder we look like nazi concentration camp survivors, Mussolini is back & his name is Fred Deluca.

Dr. Gus wrote

Our DA Office has clearly demonstrated unethical behavior for years.

What has been demonstrated so far to our local area franchisees, is that the DA Office and Subway Corporate are the "same entitiy".

Some franchisees value integrity and honesty far above money. Those few will not stay once they experience the unethical behavior.

The rest who compromise their values for the money, will stay, and will stay quiet about it.

This is just a microcosm of what America at large has come to recently exceedingly suffer from. Excessive greed, above all else.

Jim Eddie  wrote:

My wife and I owned a Subway in 1993. Once a week we still talk about the misery we suffered. It sounds like things got even worse since then. I always had a feeling the success of the company was on the back of the hard work of store owners. We only owned the store for less than a year and it was the worse year of our life. I do feel the whole subway system is a scam and if you already own one, it’s too late but if you are thinking of buying one speak to current owners. If they are honest, they will talk you out of it.

What do you think? Are the accolades of Subway as a top franchise deserved?

Does Subway franchise provide the training, support, marketing and systems it promises?

Are Subway and founder Fred DeLuca genuinely dedicated to the success of their franchise owners? 

Please share a comment, opinion or insight below.

Also read:  SUBWAY: What Do Franchisees Make on $5 Footlongs?

Are SUBWAY Franchise Owners Happy?

SUBWAY: Send Jared to Gitmo! Parody Press Release

ARE YOU FAMILIAR WITH THE SUBWAY FRANCHISE?  WHAT COMPLAINTS DO SUBWAY FRANCHISEES HAVE?  PLEASE SHARE A COMMENT BELOW.

To contact the site admin, email UnhappyFranchisee[at]gmail.com.

QUIZNOS Franchise Owners Form Franchisee Association

Quiznos franchise owners are forming a new franchisee association.

We wish them the best of luck.  With widespread unit closures and one of the worst franchisors of any major franchise chain (one that also seems to be on the brink of a financial meltdown), they are going to need all the luck they can get.

Here’s the recent press release announcing the formation of the Quiznos Franchisee Association (QZFA):

Quiznos Franchise Owners Announce Formation of Association

CHESTERFIELD, Mo. (Aug. 25, 2011) – In an effort to unite Quiznos Restaurant franchise owners, we are pleased to formally announce the formation of the Quiznos Franchisee Association (QZFA). QZFA will provide Quiznos franchise owners a platform to advocate for improved profitability, transparency and stronger franchisor-franchisee relationships in order to enrich the value of the Quiznos brand.

“This is a pivotal time for Quiznos franchise owners; we now have an opportunity to unite on common issues and protect our investments for the future of our businesses,” explained Michael Slater, vice president of the Quiznos Franchisee Association.

QZFA is committed to providing a united voice for franchisees and needs members who are ready and willing to make positive contribution to the future of the brand. Quiznos franchise owners are eligible for QZFA membership.

“Membership in QZFA is essential for Quiznos franchise owners who desire to be profitable and have a voice in how their business is operating,” said Steve Bawden, executive director of Quiznos Franchisee Association.

The mission of QZFA is to build and promote an environment, which fosters productive collaboration to enhance the long-term value of the Quiznos brand, while growing franchisee revenue and profitability.

“By joining QZFA, we will be united for the first time in the history of Quiznos. We will have one voice and can make a difference in saving our investments and our future,” said Andre Bonyadian, franchise owner, Los Angeles, Calif.

QZFA board members are committed to uniting Quiznos franchise owners in order to achieve the mission of the association and ensure a sustainable future. The board members and leadership is:

· Kevin Tackett, President

· Michael Slater, Vice President

· Keith Rentschler, Secretary and Treasurer

· Robert Caldwell, Director

· Andre Bonyadian, Director

· Randy Hart, Director

· Tushar Patel, Director

 

QZFA will open for membership within the next few weeks. Franchisees will be able to join via a new website. QZFA will also be looking to connect with owners and operators through Twitter account (@QFranchisees) and Facebook.

 

About QZFA

The Quiznos Franchisee Association is a community of Quiznos franchise owners dedicated to growing franchisee profitability, transparency, enhancing the value of the Quiznos brand and strengthening franchisor-franchisee relationship. QZFA serves as the voice for members committed to protecting their investment for a sustainable future. QZFA is the only association officially sanctioned by Quiznos to represent franchisees.

ARE YOU FAMILIAR WITH THE QUIZNOS FRANCHISE & FRANCHISEE ASSOCIATION? SHARE A COMMENT BELOW.

QUIZNOS: Franchise Karma Avenges Sub-Standard Promotions

Unhappy Franchisee contends that Quiznos current misfortune is the result of Franchise Karma exacting revenge for past, well-documented misdeeds.

Usually these misdeeds were the result of a Quiznos corporate attitude that its franchise population was like a mountainside ripe for stripmining.

UnhappyFranchisee.com and other blogs have been documenting these misdeeds for years.  We are revisiting these posts and discussions as part of our Franchise Karma is a B*tch series.

(Also read: QUIZNOS OVERVIEW & DISCUSSION, QUIZNOS Woes: Franchise Karma is a B*tch,  QUIZNOS Woes: Sean Kelly’s “How to Make $75 MILLION in 3 EZ Steps!”)

Today’s post is a rebroadcast of “Why Your Quiznos Won’t Give You a Free Sub.” published February 26, 2009 by Sean Kelly.

*   *   *   *   *

Why Your Quiznos Won’t Give You a Free Sub

February 26, 2009 by Sean Kelly

Why oh why would Quiznos announce a million sub giveaway, and then issue free sub coupons that your local franchisee won’t honor?

Because Quiznos’ amazing talent for shooting itself in the foot is surpassed only by the speed with which it reloads.

To put it simply, Quiznos corporate decided to give away 1,000,000 subs that weren’t theirs to give away. Quiznos not only expected its franchisees to foot the bill for the millions in food giveaways, Quiznos corporate would actually make money selling them the ingredients.

Ex-Quiznos franchisee Rich Piotrowski explains:

The reason so many Franchisees are not honoring this coupon is that the company delayed this promo TWICE, as many of the Franchisees said they would not go along unless Quiznos Corporate (which makes about a hundred million a year selling food to its franchisees, and prohibits them from buying food from anyone else) paid for the food in this promotion.

Late last week, Quiznos decided to roll it out anyhow saying no, franchisees would have to pay the entire cost. Every other system (such as Denny’s Arby’s etc) the cost of the promo was shared by both parties. In addition, most of those system sell food at cost to Franchisees. Like those other systems, Quiznos makes money by collecting a 7% royalty and 4% from franchisees which they say is for advertising. Unlike those other systems however, on top of those fees, Quiznos makes that hundred million IN ADDITION by selling food to them.

And you wonder why Franchisees are not honoring the coupon?

In related news, the SBA has released a report showing that Quiznos franchisees have the highest loan default rate of any franchise chain.

And Quiznos CEO Dave Deno has resigned and infamous Quiznos founder Rick Schaden has once again taken the reins to ensure that franchisees continue to get toasted to a crispy brown.

Comments on the original post:

By Deanna:

I just went to Quiznos with my coupon in hand. I was greeted with all smiles until I mentioned the coupon. I was told they were not honoring it. I said it was OK and turned to leave. The cash register girl asked the guy making the sandwich(possibly the owner or mgr) if she could give it to me anyway since the sandwich was almost finished. The guy gave a frustrated look and just walked away, not finishing the sandwich preparation, just leaving it for the cash register girl to finish. It was supposed to be a honey bacon club with everything. I received a couple slices of ham with onion, that’s it! It looked pretty bad, and I didn’t trust eating it so I threw it out. I was made to feel like charity for this disgusting sandwich. That will be my last visit to Quiznos.

By Carol:

I just fired this off to Quiznos Corporate:

My husband and I took our little boy in to redeem our Free Sub from the coupon issued to me in your Million Sub promo. The man at the register said it had “already been used”, which is 100% false. They would not accept the coupon, and they kept the coupon since I refused to pay for what was supposed to be a free sub. He also said that they had many customers with the same problem who were very angry.

This promotion of yours is a DISASTER. One million outraged and disgruntled customers will tell another million people about what a scam you people at Quiznos pulled. If restitution is not made to our family, I can promise you that no one in our immediate and extended family will EVER set foot in another Quiznos as long as we live (or as long as there is a Quiznos, which, at this point, looks doubtful). I also will be visiting a great number of the consumer complaint websites, as well as registering a complaint with the Better Business Bureau and our NJ Office of Consumer Affairs.

I want you to call me directly. If I do not hear back from someone from Quiznos by the end of the work week March 6, my hand will be forced and I will be contacting the mentioned parties, as well as a friend at Business Week.

This entire experience was horrible. People in Quiznos were hearing everything I had to say about never ever returning to Quiznos, and frankly, the sandwich didn’t even look that appealing. The franchise in Wayne Hills Mall is not very welcoming anyway.

The way this Million Sub giveaway was handled is an bright shining example of how NOT to run a promotion. If it was meant to foster good will with your customers, you have failed miserably. Right now, Quiznos is Public Enemy Number 1.

By Villa:

That’s the problem in corporate America: Most think when getting a franchise everything is easier. Wrong. Putting a (real) entrepreneur into a franchise is like putting an creative artist in jail.

In my opinion only a few franchises are really worth it: Like McD, maybe Burger King and Wendys and maybe Subway (only because the brand is good).

Quiznos is the most stupid system. I remeber 2 years ago the TV shows “Own your own Quiznos” where corporate tried to sell a restaurant to almost everybody. If you are a good entrepreneur, save the money for the franchise and open your own individual store. You must be better than others!

By Carol Cross:

In the food wars and in the saturated “fast food” sector, the franchisors are fighting to compete and retain their market share with coupons and free stuff, etc.. Franchisees, as always, are calculated sacrifices to this competition.

The margins for the surviving Quiznos franchisees are very “thin” to begin with, but while it may not do anything for the franchisees, it does mean that increased traffic will increase the EBITDA for the franchisor who shares none of the overhead costs of producing free subs.

Quiznos, of course, is the poster franchisor for exploitation of franchisees. It is no wonder that many of their franchisees will revolt and not honor the coupons.

By Windel:

Sounds like there needs to be some restructuring of franchise and corporate law in this country…

It also sounds like that this country would be better off without any Quiznos anywhere…

C’mon – It’s a sub shop… Other sub shops have ovens now, and can toast your sandwich… The only thing that makes Quiznos different, is that they charge more for their food, and that the corporate office is willing to be a little more evil than average…

ARE YOU FAMILIAR WITH QUIZNOS?  WILL AMERICA “BE BETTER OFF WITHOUT QUIZNOS”?  SHARE A COMMENT BELOW.

Email us at UnhappyFranchisee[at]gmail.com.

DEAR GOD, Please Spare Borders. Take Quiznos Instead!

Dear God, you are all-knowing and all-powerful.  Your ways and Your Plan sometimes seem beyond our comprehension.

Like, for instance, how you are taking one of our kindest, gentlest retailers from us, while leaving the sub chain that has tortured its own franchise owners and the American public for years.

Borders let us sit in their comfy chairs, drink good coffee and read their books and magazines for free.

Borders made us smarter, more literate and better-caffeinated.

Quiznos tormented us with disgusting, singing rats, migraine-inducing cats, and workers who imply they had sex with the very ovens that toasts Quiznos subs.

Putting all else aside, Lord, doesn’t Quiznos deserve to be smited (and smited hard) for ANY of the three commercials posted below?

Spongmonkeys – Bug-eyed Vermin From Hell

In what universe could the disgusting “Spongmonkey” characters induce a life form to ingest a Quiznos sub?

Where, exactly, did Quiznos marketing executives get the idea that they could win the fast food wars by grossing out and annoying their potential customers?

The reaction to this commercial was so bad that, according to Ad Age, Quiznos franchisees posted signs on their doors saying they weren’t to blame for the bug-eyed rodents.  Franchisees posted signs that directed complaints to Quiznos corporate.  Quiznos franchisee Huey Mack reported to Ad Age that all comments were negative and the backlash was clearly hurting sales.

 

 

Singimals – Proof Quiznos Hates Us All

Cyphervirus wrote:  “I’ve never wanted a cat to die before, until I saw this commercial…”

Soundsourz wrote:  “There is no possible way that any serious business could ever think something this pathetically annoying would ever serve as good advertising.”

netsurferx1 wrote:  I used to think that their commercial with those rat/hamster/gerbil things (way back in about 2003) was annoying. And then there was this.

Seriously, WHAT THE F*CK ARE THEY THINKING!  And how the f*ck does this sell sandwiches in the first place, anyway?”

dpaanlka wrote:  “I can’t believe Quiznos is still making ads like this. They’ve been trying the good old stuffed dead animal routine since at least 2003 and it has never, ever worked.”

fosbury68 wrote:  “Quiznos announced layoffs at their corporate offices on 1/7/11. 69 people.  Guess the ad didn’t work.”

 

 

Toasty Torpedo – Sex Sells.  Gay Oven Sex Doesn’t.

Imagine the ad agency creative pitch for this commercial.  The agency exec puts up the Powerpoint slide and says “Our research indicates that what consumers really want is to imagine a Quiznos worker inserting his penis into the oven used to toast their Mmmm toasty sub.”

Oven:  “Scott, I want you to do something…”

Scott: “I’m not doing that again, that burned.” (looks at groin)

Oven: “We both enjoyed that.”

And a few lines later…

Oven: “Put it in me, Scott”

Seriously?  How does one company make such bad advertising decisions so consistently for so many years?

 

 

WHAT DO YOU THINK?  SHOULD GOD DELIVER US FROM MORE UNHOLY QUIZNOS ADVERTISING WITH A BOLT OF LIGHTNING? SHARE A COMMENT BELOW.

Email Unhappy Franchisee at UnhappyFranchisee[at]gmail.com

QUIZNOS Woes: Sean Kelly’s “How to Make $75 MILLION in 3 EZ Steps!”

UnhappyFranchisee.com’s Quiznos Woes:  Franchise Karma is a B*tch series looks back at the misdeeds and misplaced priorities that led to the current Quiznos financial crisis.

Let’s start off with the alleged unreturned franchise fee scam.

On August 27, 2007, Sean Kelly published “How to Make $75 MILLION in 3 EZ Steps!” on the Franchise Pick blog.  Instead of focusing on building successful franchises, according to Kelly, Quiznos used the franchise sales process to extract $75 million in unreturned franchise fees for stores that would never open.

*  *  *  *  *

How to Make $75 MILLION in 3 EZ Steps!

by Sean Kelly

How Quiznos invented the Everlasting Gobstopper of franchise fraud. Allegedly.

So, you say you want to make $75 million, but you have no special skills, work ethic or motivation? No problem! If you follow this secret formula and these three EZ steps, you will have $75 million in revenue in no time. And you won’t have to do ANYTHING to earn it. Guaranteed.

Three EZ Steps to Becoming a $75 Million-aire

STEP #1: Sell 3,000 sandwich franchises at $20-$25M each

“But I barely know how to make a sandwich, much less run a sandwich shop!” Enough with the negativity! I said sell franchises, not open franchises.

STEP #2: Include a deadline for them to open their sandwich shops

Using the magic System Q franchise agreement, your franchisees will agree that if they don’t find an approved location and open their shop within a given timeframe, you get to keep their money(!) Pssst… Guess who approves the locations?

STEP #3: When they fail to open, keep their money!

That’s right. You not only keep their money, but they’ll sign a release saying you are liability-free, and they’ll promise not to say any bad things about you. Send me 10%, then go buy a yacht!

Skeptical? Learn How Quiznos (Allegedly) Made $75 Million in 3 EZ Steps!

Janet Sparks (a kill-joy franchise writer who never could keep a secret) spilled the beans in a story on BlueMauMau.org. Seems some whiny franchisees continue to act like royal pains in the toasted buns. They’re combining their lawsuits into a Class Action Combo, and Supersizing their complaint:

The amended version alleges that Quiznos fraudulently induced prospects to purchase franchises at a price of $20,000 to $25,000 each, knowing that their stores would never open. It states that, according to Quiznos’ own figures, it sold more than 3,000 franchises that never opened, resulting in approximately $75 million in revenues for the franchisor, without providing anything in return to the purchasers.

The brilliant part (allegedly brilliant part, mind you) is that Quiznos can basically disapprove every location suggested, forcing the franchisees to fail to meet their obligations. Quiznos can then threaten to hold them liable for lost future royalties. The franchisee has no choice but to sign a liability release and an agreement to keep their stupid, ungrateful mouths shut (or else).

No here’s the brilliant part: The franchisor can then resell the same territory again and again and again and again to unsuspecting franchisees who have no way of knowing it was sold before… making this the Everlasting Gobstopper of franchise fraud! Allegedly!

Original comments on this post:

By Barb

1234 days ago

It’s amazing they have gotten away with such obvious un-ethical business practices. Until the government really sees and acknowledges this as evil and as a scam to get the honest working people of our countries money nothing will be changed. There should be stricter laws that throw out one sided UFOC’s. Until this is accomplished it will allow these crooks to get away with robbing people. How many people does it take before our government changes the laws to stop all this insanity? All I hear is do your due diligence. I believe it begins with laws to protect the honest individual. Let’s face it the honest person doesn’t think like a crook. You have to think like a crook to be a crook. Isn’t that why we have laws to protect the people?

By sean

1234 days ago

Barb said:Until the government really sees and acknowleges this as evil and as a scam to get the honest working people of our countries money nothing will be changed.

I agree with everything you’ve said except that nothing will be changed until the laws are changed. The Internet and sites like franchisepick.com, bluemaumau.org, Michael Webster’s biz op blog, Franchise Pundit, Joel Libava’s Franchise King blog, Rip-off report, franchise chat forum, and provide a forum and unfettered discussions that have never existed before. While the laws certainly should change, consumers have a lot more information and caveats as to scams, ripoffs and bad deals – franchised and non-franchised.

People need to realize that the government will not protect you from bad business deals, and even fraud. Look at late night tv: Phony preachers hawk donations with fake faith healing, tons of get rich quick and weight loss scams are sold using fake testimonials by actors reading from a script, famous people push exercise gadgets, investments, insurance scams, adjustable beds at 3X retail and snake oil. It’s not likely to change soon.

The franchisees and ex-franchisees who leave comments about their experiences are making a difference warning others. Until these laws change, prospective franchisees should pay an experienced franchise attorney to review any document before signing.

By Barb

1229 days ago

I agree you should see a franchise lawyer. But you have to agree the average person who never had to use a lawyer before doesn’t even know there is such a thing as a franchise lawyer. Usually people who look at site’s like this is after the crime is over. People need protection because it takes an incredible amount of time to understand what the franchise world is about. Not everyone knows as much as you Sean. The average person needs protection by enforcing bad franchises to disclose all material facts. More laws to protect the honest hard working person who doesn’t know how the franchising world works. You have to admit there are few good franchisors. And that is why we need laws so ethical business practices will be enforced. Just read all the complaints on the internet. Consistant, real and disturbing that the unethical franchisors get away with misrepresentation, non-disclosures and exagerating material facts.

ARE YOU FAMILIAR WITH THE QUIZNOS & FRANCHISE KARMA?  SHARE A COMMENT BELOW.

You can email UnhappyFranchisee.com at UnhappyFranchisee[at]Gmail.com.

QUIZNOS Woes: Franchise Karma is a B*tch

Quiznos is struggling under a debt load in excess of $850 million.  1500 franchisee-owned Quiznos stores have closed.

In May, 2011 store sales fell by 13%.  Quiznos is at risk of violating lending terms that require a certain level of earnings.

Quiznos, of course, blames the economy.

But Quiznos franchisees and readers of UnhappyFranchisee.com, BlueMauMau.org and the former Franchise Pick know better.

They know that Quiznos is finally answering to The Law of Franchise Karma.

What’s the Law of Franchise Karma?

The Law of Franchise Karma states that franchise companies who treat their franchisees as sheep to be sheared, marks to be conned or mountainsides to be strip-mined will eventually have to answer for their misdeeds.

Franchise Karma will be their to hold them accountable.

And Franchise Karma is a B*tch.

Franchise Karma has come a’calling, and Quiznos will now publicly answer for its misplaced priorities, corporate greed, unethical behavior and a seemingly complete disregard for the well-being of the franchise owners who built the Quiznos – and the Schaden – empire.

What are the misdeeds of Quiznos corporate?

In the next few posts, we’ll dig into the archives and post past warnings that Quiznos corporate was acting as stripminer, pirate and plunderer rather than a responsible franchisor.

Read the “Franchise Karma is a B*tch” Series:

QUIZNOS Woes: Sean Kelly’s “How to Make $75 MILLION in 3 EZ Steps!”

ARE YOU FAMILIAR WITH THE QUIZNOS & FRANCHISE KARMA?  SHARE A COMMENT BELOW.

You can email UnhappyFranchisee.com at UnhappyFranchisee[at]Gmail.com.

 

QUIZNOS SUB Franchise Closing, Closings, Closed

(UnhappyFranchisee.com)  Know of any Quiznos Sub franchise locations that have closed or are closing soon?  Share a comment below, or email a picture to unhappyfranchisee[at]gmail.com.

The Quiznos Sub franchise opportunity may seem like a safe, risk-free investment because of the well-known brand name, the great product and positive media hype (which includes rankings and awards from publications that survive on advertising from franchise companies like Quiznos).

Some Quiznos Sub franchise owners may have a different opinion on how risk-free buying a Quiznos Sub franchise really is.  A Forbes article “Where You Might Not Shop In 2011” reported:

Quizno’s

Stores closed: Aproximately 1,000 (analyst estimate; company won’t confirm)

Percentage of total: 22.7%

Struggling as a higher-priced alternative to Subway, the sandwich chain began putting mini-stores into gas stations to boost market share. Upscale fast sandwiches are a tough position in a down economy.

Here is a growing list of Quiznos Sub franchise investments that didn’t end so well:

Quiznos Sub, Hampstead, MD

The contents of Quiznos Sub, 2319-A Hanover Pike, Hampstead, MD 21074 were auctioned off Tuesday Febuary 1st, 2011 by Rasmus Auctioneers.

Quiznos Sub, Eldersburg, MD

According to a December, 2010 post on the Eldersburg Patch: “A manager of another nearby business… put it more bluntly saying, ‘he just wasn’t making any money.’ Assets of the sandwich shop were sold in an online auction Nov. 23 by Rasmus Auctioneers.”

Quiznos Sub, Santee, CA

From the Santee Patch, June 21, 2011 “Quiznos Subs shop left a sign posted at the entrance which indicated the downturn in the economy was the main factor in their closing.”

“Dear Valued Guests,

Due to the recent economy and recession, we have regretfully closed our business. We appreciated your business over the years.

Sincerely, Jim and Diane”

Photo credit:  Scott Sinclair

Quiznos Sub, Elgin, IL

“Within the last nine months, three downtown restaurants have closed and remain vacant: Quiznos, Mad Maggie’s and RoadHouse/Main Event”  June 22, 2011, The Courier News.

Quiznos Sub, Hyattsville, MD

“Update June 8, 2011: After reading the scrawled ‘Closed’ note posted on the door of the Quiznos store at the Shoppes at Metro Station, one might think the manager had simply stepped out for a lunch break. But after about a month of zero activity at the sandwich store, the truth is firm: this sub shop’s ship has sailed.”

In a comment on the Hyattsville Patch story, The Kid wrote:

Quiznos corporate makes its money selling food and supplies to its restaurants at inflated prices… This chain had nearly 6,000 restaurants in 2006 and a tad more than 2,000 now. It’s a loser to everyone except Dick Schaden and the Wall Street fatcats who own it.

Quiznos Sub, Bennington, Vermont

“Five months after it reopened to much fanfare, the Quiznos in Bennington Square is once again closed.  Tuesday’s closing came as a shock to the sandwich shop’s employees, who learned Friday they would be losing their jobs…” Quiznos Closing Shocks Workers, Tuesday January 11, 2011.

Quiznos Sub, Virginia

”Quiznos is closing down!! by Hannah_Banana222 on Thu Jan 13, 2011 2:30 pm  My brother works (well, worked) there, and they told him it was closing on the very last day it was open. No notice whatsoever. Not nice.”

Quiznos Sub, El Cerrito, CA

“Quiznos Sub – CLOSED 10810 San Pablo Ave, El Cerrito, CA 94530, (510) 527-7827” Source: Yelp

Quiznos Sub, Ocean City, MD

See photo.  Closed Quiznos shot while on vacation.

Quiznos Sub, Boston, MA

“The Quiznos sandwich shop at 263 Huntington Ave., between Symphony Hall and Gainsborough Street closed Nov. 4, eliminating an eating choice near the Northeastern campus.” The Huntington News, November 11, 2010.

Quiznos Sub, Bloomington, IL

“A Lexington business owner who recently closed his Wings Etc. restaurant and bar has also shuttered his two Twin City Quiznos locations.  The Quiznos franchises, at 2601 Oakland Ave. in Bloomington and 1700 E. College Ave. in Normal, had been the only two in the Twin Cities, according to the sandwich-shop chain’s website.  A sign on the Oakland Avenue store’s door last week read, ‘Sorry, we are closed for business.’  The Quiznos franchise owner was Greg Wilson of Lexington, doing business as Gregors Enterprise Inc….”  Pantagraph.com, January 6, 2011.

Quiznos Sub, Williston, North Dakota

“Quiznos closes doors, no reason given.  Quiznos of Williston closed its doors on Saturday, and it’s unclear if the sandwich shop will reopen.  One of the owners said he couldn’t comment on whether the restaurant would open again due to corporate policy restrictions… Quiznos, which first opened in Williston several years ago, had closed before for a few months last year and re-opened July 30, 2010.”  Williston Herald, April 20, 2011

Quiznos Sub, Garden City, Kansas

Quiznos’ time in Garden City has come to an end. The franchised sandwich shop closed its doors Friday after more than 13 years in business and will be converted into another sandwich shop, Subway… owner Clark Nelson chose not to renew the rights to his location…

Business over the years has had its “severe ups and downs” and the restaurant had been busier than normal as the closure approached, Nelson said.

“We’re tired of it. It’s been a long stretch,” Nelson said. “We’re ready to do something else.”  GC Telegram, 1/1/2011.

REPORT A QUIZNOS SUB FRANCHISE CLOSING OR ADD A COMMENT BELOW.

Email Quiznos Sub closing photos to unhappyfranchisee[at]gmail.com

QUIZNOS Franchise Failure Blamed on Corporate Policies

Quiznos franchise failure in Elgin, Illinois is being blamed on Quiznos corporate policy decisions, the recession and prolonged street construction according to a story in the Courier News.

After eight years in business, Quiznos franchise owners Joe Follrath and Suzanne Pfaff said they’ll shut their doors for good next week “unless someone makes us a last-minute offer to buy the place.”

The Douglas Avenue sandwich shop, which has been in business downtown for eight years, will stay open until it runs out of stock, which probably will be by the end of next week, they said. The owners plan to hold an auction sometime thereafter.

The Quiznos franchise owners have been looking at options for about six months but the business is no longer financially viable.  They plan to hold an auction once they run out of stock.

In addition to the tight economy and downtown construction, Quiznos onerous company policies helped cause shrinking margins tight and dwindling profits.  According to the article:

“We originally chose to open a Quiznos franchise because of the company’s growth potential and the quality of its products,” said Follrath. “We did great business for the first few years, but sales have been swiftly declining since we hit our peak in 2007.”

According to information provided by Elgin’s Downtown Neighborhood Association, with the recession on the horizon, between 2007 and 2009, more than 1,000 franchisee-owned Quiznos closed.

“Franchisees cite rising Quiznos-distributor food costs, drastic coupon discounts such as buy-one, get-one-free sandwiches, and other corporate policy decisions,” the release stated. “Currently, Quiznos is requiring its franchisees to undergo a complete interior renovation and point-of-sale system upgrade.”

Tonya Hudson, executive director of the Downtown Neighborhood Association, said she is amazed that the Quiznos franchise owners persevered as long as they did, calling it “a testament to the loyal customer base they built in downtown over the past eight years.”

ARE YOU FAMILIAR WITH THE QUIZNOS FRANCHISE?  SHARE YOUR THOUGHTS WITH A COMMENT BELOW.

Also Read:

QUIZNOS OVERVIEW & DISCUSSION

Failure Rates of the 10 Most Popular Franchises

Franchise Owner Claims It’s “Impossible to Make Money” With Quiznos

QUIZNOS Franchisee Blasts HQ’s Coupons and Discounts

QUIZNOS: Franchisees Lost $2.25 per Sub on Giveaway

Facebook Horror Stories: Sub Franchise Employees Hating On Customers

Are your franchise employees sabotaging your brand on Facebook? by Sean Kelly

Caution:  This post contains some pretty offensive material.

There’s a popular sandwich delivery franchise that spends millions each year trying to build a fun, friendly, customer-centric brand.  Unfortunately, this particular sub franchise chain and its franchise owners don’t monitor Facebook.  If they did, they’d see that some of their employees (even store managers) have been busy sabotaging their brand by communicating how stupid they think their customers are and how much they hate them.

In some cases, the employees publicly wish physical harm upon the patrons who pay their paychecks.

Have you had problems with employees or co-workers making damaging comments on Facebook?  How did you handle it?  Please share a comment below.

“[Company Name]’s customers are sometimes (usually) the dumbest people everrrrrr.”

The comments below are from an actual 87-entry discussion thread titled “[Company Name]’s customers are sometimes (usually) the dumbest people everrrrrr.”  The photos are from the same public forum.

A warning:  some of these comments are vulgar and pretty offensive (even with my asterisking).  Then again, that’s the point.

The employee photos are posted to the general group, but those in the photos are not necessarily the commenters.

Using his real name, one employee writes on the publicly viewable forum:

i hate when they watch you make the sandwich and when your done wrappiing it and you hand it to them they say i didnt want mayo or no tomato. its like f*ck you *sshole you just watched me make it.

i had one lady call me on the phone and be like how do i know what the sandwichs are? and i was like… are you serious open the f*cken wrapper and LOOK!!! or know what your ordering f*cking dumb*ss.

Another store employees writes:

since our store is right next to a panda express, we get the people that come in look around and just walk out… HOW THE HELL DOES THAT HAPPEN!?!?! not only is there a huge f*cking neon sign on the goddamn window…. but everywhere you f*cking look there is [company name]!! we wear [company name]!!  shirt. YOU STUPID C*CK JUGGLING THUNDERC*NTS!!!! that goes to every customer thats ever been an idiot *sshole.

A store manager writes:

I had this one stupid b*tch come in one time ask for a sub with only cheese and lettuce on it. So i think to myself at first “what a f*cking waste of money”. So I ask her again” So all you what on it is just cheese and lettuce”. She says “yes”. So I make it. Then after she sits down and opens it, she comes back up and tells me that it is not what she order. She was wondering where all the meat was. Stupid f*cking bitch if you want f*cking meat then dont tell me you just want a sub with cheese and lettuce! F*CK!

One girl writes:

its not so much that people are dumb….. they are just complete imbeciles …..

We wish our customers would die!

A store manager in the Midwest writes:

F*CKING BASTARDS. I don’t think i have ever gone a whole day without dealing with at least a handfull of customers i wanted to stab in throat just for being a retard

A young girl employee wishes death by allergy on a customer:

He makes snide comments to his lady friend (who will definitely get aids from this frat f*ck), and then watches me wrap the sandwich.
boy: “Oh..Can you take those toms off?”
myself: “What?”
Boy: “Yeah, I’m allergic to them..”
“really? how tragic.”
“yeah, i’d have to go to the hospital.”
“and what a loss.. you think you’d remember you’re allergic to something before you HAVE IT ORDERED, but you know..”
and then they left. guess who kind of lost it? he should die.

people are just f*cking morons that eat at [Company Name].

A young male employee fantasizes a bit more violently:

Hi, can i have a slim one with lettuce?
Mam, we arn’t allowed to put anything on the slims but the meet and or cheese.
Lady: Ohh oky, i gotcha! Can i have tomatoes?
Me: Ma’am, we Can’t put that on there either..
Lady: Ohh, okay i understand..why don’t you put them on the “side” for me (winks)
Me: Takes out a shotgun and fucking kills her.

Forget the fact the company’s claim-to-fame is free fast delivery

Comments from delivery drivers and store employees include:

ITS 20 F*CKIN MINUTES! Christ, i have other deliveries. I get there as fast as i can. Do people that say that think i stop and f*ck around on the way there? If you want it faster, pick it the f*ck up, b*tch.

*ss hole makes me follow him out the building, all the way around to his car, and only gives me 9 bucks (tips me 1 f*cking dollar)

What I love is how many times you have to tell the idiots that we don’t have a computer to track addresses, so you need to give me your address every time.  The trick is for us to be smarter than the idiots that order from us.

i Hate the people who call in 1 or 2 sandwich orders for pickup. come on. it seriously takes 1 minute to make a sandwich. can’t you just f*cking come in?

Alienating customers by groups

…does anyone have a dillard’s by their store? we have one down the street and the employees come for their lunch hour every day and EVERY. SINGLE. ONE. is a b*tch.

The people who work at gene Juarez are the stupidest dumb c*nts you’ll ever have to deal with. unfortunately that’s on a daily basis also.

there is a 24-hour fitness ACROSS the street.  They order sandwiches to be delivered every F*CKING day.  they can’t walk across the street?

OK, the last one was funny, but still…

“wtf is this, subway? i think not.”

The sub franchise employees are outraged by customers making special requests.  A female team member writes:

i hate it when people ask for sh*t on their subs like pickles and swiss cheese and then they want ranch instead of mayo….

wtf is this, subway? i think not.

Another girl agrees:

i guess every [company name]’s customer is dyslexic …we had this one guy (maybe it was a woman, i can’t remember) who was begging for us to put tomato and lettuce on his slim. he was like “i’ll pay more for it, just put it on there” and i was like retard!!!!! if you want to pay more, GET THE FRIGGIN SUB! it’s like a dollar more, and already comes with all that sh*t…

“f*ck you fat lady”

A store delivery driver writes:

this huge lady pulls up and runs inside the store screaming “wheres your bathroom?!?!?!”, so we point her in the right direction…

we go knock on the door and she says “occupied” and comes out shortly after. she sneaks out the back door and leaves….

it took us 45 minutes to clean her sh*t up

wherever you are, f*ck you fat lady

Can you flash for food if you’re NOT ooglay?

A female store employee writes:

I had a girl come in and get pissy when I didn’t let her show tits-4-subs (she was ooglay) and so she was a drunken whore…
Crazy c*nt.

From the discussion “Favorite Firing Stories”

A female crew member recounts:

we had a driver spit in this b*tches food (she was rude to us, a b*tch and NEVER tipped once!) and told her “heres your sandwich b*tch i hope you choke on it.” squeezed when he handed it to her and walked out. she called back later cuz she ate half of it and then found a big wad of spit. needless to say he was fired but it was awsome. he was a good worker too it sucked.

Another female employee of a franchisee writes:

A few months ago, an amazing driver and a shitty *ssmanager were fired for smoking weed behind the store. Oh man. I joke about that to my manager all the time.

A male employee writes:

we had a driver get fired for droppin a baggy of coke on the floor right in front of our manager and then saying its not what it looks like, its some crushed up vicodin that im sellin to a buddy. Our manager checked the bathroom and found white residue on the sinks. awesome employee and a cool kid but seriously dont bring that sh*t to work.

If they forget the chips with your order, you might want to let it go.  A store employee in MI writes:

a guy got fired from our store [store location] for saying “F*ck you! im gonna haunt you for the rest of your life b*tch!” to a woman he was delivering to because she told him that he forgot the chips….she called our store afterward and told our manager what had happened, so she brough it up to the driver and he said, “f*ck this sh*t!” and left…haha what a crazy *ss night that was

Lawsuits waiting to happen

Facebook has got to be Disneyland for litigation attorneys putting together sexual harrassment, discrimination and related cases.

One employee writes of his co-worker “she is the only idiot working for us, nobody likes her and she is a gross bisexual”

Employees discuss perceived sexual advances by a female franchise owner toward a young male employee:

Male employee #1: she [franchise owner] was working and said she wants to go shopping with me for clothes sometime…shes taking interest in what i wear….i think she has a thing in me.  she is a total babe….not a fat slob…like u would THINK would own a fast food chain…not at all.  shes so classy
Male employee #2: Hit that shit!
Male employee #1: work in progress

Female employee: for sure! DO HER! thats like ultimante bragging rights (especially if shes older)

Welcome to the Age of Facebook

Every restaurant, foodservice or retail employee is going to vent about their customers sooner or later.  The problem is that now the venting isn’t going on in the backroom, it’s happening on Facebook for all – customers, prospective franchisees, lawyers, etc. – to see.  There’s the potential not only to damage the business and the brand, but the employment prospects of the employees who don’t realize they are revealing more about themselves than their customers.

This chain’s employees’ attitudes may or may not be worse than its competitors.  But here’s the most shocking thing to me:  this discussion and most of these comments have been publicly displayed on Facebook for three years. Has no franchise owner or home office employee searched the company name on Facebook in the past three years?

The lesson: If you own a business and you’re not familiar with Facebook, you better ask your kids for a quick lesson and start monitoring what’s being said about you and your business today… before real damage (or more damage) is done.

ARE YOU FAMILIAR WITH THIS – OR ANOTHER – FACEBOOK HORROR STORY?  SHARE A COMMENT BELOW.

SUBWAY: What Do Franchisees Make on $5 Footlongs?

Discount promotions like Subway’s $5 Footlongs sub campaign provide are attractive to consumers and great for the franchisor… but what about the Subway franchise owner who foots the bill?  According to Smart Money, Subway franchisees make a “Profit of roughly $1.20 a sandwich.”

Product discounting is one of the hottest topics in franchising.  Here’s why:  Franchisors make money off the gross sales of their franchisees, regardless of franchisee profitability.

Some franchisors make additional money marking up ingredients and food products to their franchisees.

Public franchisors benefit from higher sales – and stock prices – that are not tied to franchisee profitability.

SmartMoney.com surveyed franchisees from different franchise chains regarding the cost to them of some current and recent promotions. The Smart Money article points out that franchisees generally bear the brunt of a promotions’s cost, including the food, labor, rent and utilities, among other things.

Here’s the Smart Money finding for Subway’s $5 Footlongs sub campaign:

Subway

Promotion: $5 Footlongs – The chain offers any regular sub for $5. (Which subs getting this price tag will vary by store.)

What they normally charge: $5.89 (12-inch turkey sub)

Promotion Price: $5

Bottom line for restaurant: Profit of roughly $1.20 a sandwich

The $5 Footlong is a catchy marketing slogan but the discounting on the turkey sub isn’t as deep as some other big fast food promotions. For Subway operators you can still eke out a decent per item profit — and hope the diner is thirsty for a large, high-margin soda. To make the footlong turkey sub, the ingredients cost $1.65 at a New York location. Mack Bridenbaker, a Subway spokesman, declined to discuss the economics of hosting the company’s $5 footlong promotion.

RELATED POSTS:

SUBWAY: What Do Franchisees Make on $5 Footlongs?

LITTLE CAESARS: What Franchisees Make on a $5 Pizza

McDONALD’S: What Franchisees Make on a $1 Burger

BASKIN ROBBINS: Franchisees Lose $1.45 per Scoop on Promo

QUIZNOS: Franchisees Lost $2.25 per Sub on Giveaway

BURGER KING Franchisees Sue Over $1 Cheeseburgers

WHAT DO YOU THINK OF SUBWAY’S PROMOTIONS?  SHARE A COMMENT BELOW.

Next Page »