Why Your Quiznos Won’t Give You a Free Sub

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

quiznos_logo_webBecause 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.  Read:  QUIZNOS, COLD STONE, SUBWAY & CURVES TOP FRANCHISE LOAN DEFAULTS.

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.  Read:QUIZNO’S: Rick Schaden, CEO… He’s Ba-a-a-ck!, and  QUIZNOS SUB Rick Schaden Back as CEO. Reactions?


Image: Quiznos