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Posted on Wed, 01/11/2012 - 02:43 PM by
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If you’re just starting your search for that perfect franchise business opportunity, you may not be aware of some of the issues that Quiznos, (a submarine sandwich franchise chain) has been facing. I’m here to school you on some of them. That way, you can learn from their mistakes, and quite frankly, lots of mistakes that the franchisees made before they wrote their checks.
Quiznos has had, “issues” for a long time. Franchise industry insiders have been aware of them for years. Here are some of the major reasons that Quiznos is in trouble, according to my friend, Carol Tice, who wrote a post for the CBS News website; “Number one, franchisees are compelled to buy everything from sliced turkey to toilet paper from Quiznos at above-market rates. Second, Quiznos store owners continue to complain that the company opens stores too close together, cannibalizing sales at existing locations and driving down their profits.” Read the rest at CBS News There’s another reason; false expectations from franchisees. It’s unrealistic to think that you can plunk down$150,000, open one food franchise, and become rich. (There are some exceptions. Look for the Golden Arches.) I’m not suggesting that every Quiznos franchise owner thought that, but I’d wager that lots of them did. It’s that, “American Dream” thing. I’ve written about the problems that Quiznos franchisees have been facing for years. Things have gotten so bad, Quiznos may actually go out of business. I Feel Bad For Them
The people that have been affected the most by consistent ball-dropping by the Quiznos executive team are the ones who are suffering. Franchisees that are now, “former franchisees,” have lost a lot of money. Some have probably lost their homes. That’s not what’s supposed to happen when you become a franchise owner, trust me. If you’re starting to get serious about being your own boss, there are at least 5 things that you can learn from former franchisees of Quiznos. They are;
1. Don’t buy a specific franchise just because it’s been named a “top franchise”
2. Don’t buy a franchise without talking to current and past franchisees of the franchise you’re interested in
3. Do hire a franchise attorney
4. Make sure that you have enough fall-back money
5. Go to The Street.com to find out what #5 is
Finally, work with a franchise industry insider to help you figure things out.
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