Quiznos franchisees weren't making enough money
Quiznos treated customers as its top priority when its real customers were the franchise owners, and squeezing them is what broke the chain.
- A typical Quiznos franchise owner cleared only $15,000 to $35,000 a year after paying rent, staff, and supplies.
- One Granada Hills owner netted $30,000 running the whole store himself, and started questioning why he bothered.
- Quiznos made good money at the top while the people actually operating the stores made almost nothing.
- Once owners realized the math did not work, the company lost the customers that mattered most — its own franchisees.
Outlook: Any franchise model that leaves owners with near-nothing after expenses eventually runs out of people willing to sign up.