How Much Does a Quizno’s Franchise Cost?
Toasted Sandwiches Are Tasty
From a Denver restaurant with the unlikely name of Footer’s has come one of the most exciting foodaround today. The Quizno’s concept falls into the category of “quick-service sandwich shop” and is known for its baguette-style bread and a dressing that uses red wine vinaigrette as its main component, plus serving more tuna salad sandwiches than just about any other restaurant group on the planet. Many industry experts consider their emphasis on toasted subs as perhaps one of the most recognizable marketing campaigns in recent memory. The chain got its start in 1981 and opened its first franchise location later that same year.
Quizno’s Franchise Review
At the end of 2008, there were more than 4,500 Quizno’s franchises in the United States – with some franchises comprised of more than one store – as well as another 450 in Canada and 135 overseas. Overseas restaurants can be found in Japan, Australia and the U.K. To give you an idea of the scope of business, more than 17 million examples of a single Quizno’s sandwich type – the Classic Italian sub – were sold by franchisees in 2008. During the previous year, the chain was rated tops in service by the MSPA, an organization of “mystery shoppers” who visit retail locations unbeknownst to store owners or employees. Quizno’s was also ranked fifth by Zagat’s, a publisher of restaurant guides worldwide, and maintained its place in the top thirty for all restaurant chains. In keeping with its emphasis on innovation – and also as a way to stay ahead of its main competition, you know, the one with the same name as a form of public underground transportation – the corporate office spends more than $90 million annually on advertising.
Quizno’s Franchise Information & Costs
To open a Quizno’s franchise, the corporation first requires the payment of a franchise fee in the amount of $25,000. Each franchise agreement is meant to last fifteen years, after which a $1,000 renewal fee is due. The total expected investment to open a Quizno’s restaurant will range from between $208,000 to a bit less than $250,000, which is fairly modest when compared to similar franchising opportunities. Owners also pay a seven percent annual royalty to the parent company, which is calculated on each store’s gross annual sales volume. One’s minimum net worth needs to be at least $125,000, with a cash-on-hand figure of at least $70,000. Most Quizno’s are found in strip mall locations, although there is the occasional stand-alone unit out in the suburbs.
Ongoing Emphasis on Quality
One of the factors to make Quizno’s such a success is the emphasis the home office has placed on its relationship with franchisees. It is no surprise, perhaps, that the chairman of the board, Rick Schaden, is himself a former Quizno’s franchise owner. He opened his first store in Boulder, Colorado, in the late 1980s after overhearing a customer in the restaurant where he was dining exclaim, “This is the best sandwich I ever ate.” In 1991 he had progressed to the point where he was able to purchase the entire franchising operation. Every new franchisee is assigned to a regionally based company executive who provides extensive training, ongoing support including that all-important quality assurance, and also smoothes the way for new product launches – of which there are many. In addition to a growing selection of toasted sub sandwiches, each Quizno’s restaurant also serves a number of different salads and soups. They also take advantage of those onsite ovens – you can’t toast a sandwich without an oven – to freshly bake up several different kinds of cookies every day.