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.”

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Also Read:

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QUIZNOS Franchisee Blasts HQ’s Coupons and Discounts

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2 thoughts on “QUIZNOS Franchise Failure Blamed on Corporate Policies

  • March 5, 2011 at 6:44 pm
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    We spoke with Joe and hope to work with him in regards to holding an online auction for his Quiznos store. We are the unofficial Quiznos liquidator in the US and have been involved in 100’s of sales of stores across the country over the past few years.

    You can browse our website at http://www.RCIauctions.com to view equipment from these stores.

  • March 22, 2013 at 7:08 pm
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    I managed 2 Quiznos franchises for aprox. 7yrs and was a certified owner/operator through their corp. class in Denver but wasn’t the actual owner, if I had been we would have been out of business much sooner than we did because my pockets were not as deep as the owners. Quiznos has a awesome product, that is undeniable, but the whole corporation is a scam designed to line the pockets of the corporate ladder and destroy the lives and families of the franchise owners. Don’t believe me, do a little research and you will see!!

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