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.
What Would You Do with $25,000?
Have you ever had one of those days when you were just kind of fantasizing about what you would do if you had a crazy amount of money? I had one of those a couple of weeks back when I was looking for a new apartment. I decided to go onto an NYC realty site and take a look at what paying an absurd amount of rent gets you in the city. I was looking and came across one for $25,000 a month (and that’s nowhere near the top end) and just had to laugh. Of all the things you could do with $25,000 - paying one month’s rent on an apartment seems pretty nuts to me. But that got me thinking, what can you do with $25,000 - from rational to fun to downright wacky.
What Happens When a Franchise Contract Ends? Obligations Upon Termination
The franchise agreement should also address who gets to use the franchisee’s phone numbers after the franchise agreement expires. Traditionally, this right has belonged to the franchisor, but with home-based businesses becoming the norm, franchisors that allowed franchisees to use their home phones or existing cell phone numbers might have an issue regaining control of this component of their former franchisees’ business presence.
18 Questions for Potential Franchisees to Ask Themselves: Part 1
Franchises are among the most profitable business options available, but potential franchisees often have no idea what they should know or ask themselves before they get started in franchising. We've talked to franchisors and franchisees to compile this list (In a two-part series) of the 18 questions you must ask yourself as you explore getting into franchising.