Quiznos Franchise Narrowly Avoids Bankruptcy
Through a last second deal with a deep-pocketed private equity investor, the once-celebrated Quiznos franchise has managed to narrowly avoid bankruptcy. The sandwich chain negotiated the extinguishing of some $300 million in obligations while securing a fresh $150 million in capital from NYC-based private equity backer Avenue Capital, a distressed investment fund with approximately $20 billion in assets under management.
Despite a bruising economy and brutal competition from sandwich rival Subway, Quiznos was able to stave off total collapse at the franchisor level for years, leaning on (some franchisees would contend crushing) its franchisees by imposing rising supply costs and promotional efforts on its franchisee network. That strategy kept the franchisor afloat, but brought about a rapid shuttering of units, with some 600 Quiznos restaurants faltering in 2010 alone.
With a second lease on life and control of the franchisor squarely in the hands of private equity professionals, will Quiznos be able to navigate a still-shaky economy, challenge Subway for supremacy, and win back the trust of its surviving franchisees?
Read more about the Quiznos deal with Avenue Capital on NPR.
8 Franchisors with Successful Social Media Campaigns
Social sites such as Youtube, Twitter and Facebook may have started out as a means to communicate, but franchisors have been able to apply marketing strategies using interactive tools such as these to increase their sales and revenue. Here are eight franchises that have launched successful campaigns via social media that have assisted in their growth.
Complying with the FTC Franchise Rule for the FDD - What You Need to Know
Jesse: Ladies and gentlemen, thank you for standing by, and welcome to the FranchiseHelp, Inc. Understanding the FDD for Franchisors Conference Call. During the participation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session. If you have a question, please press the 1 followed by the 4 on your telephone. Your line will be briefly accessed from the conference to obtain the information. If at any time during the conference you need to reach an operator, please press star zero. As a reminder, this conference is being recorded Wednesday, May 7th, 2008.
5 Billionaire Franchisors and How They Did It
Check out our list of Billionaire Franchisors and be inspired (or at least amused) by their stories...