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Quiznos Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What is the Initial Investment for a Quiznos Franchise?
The initial investment for a Quiznos franchise ranges from $220,600 to $641,000. This figure includes a franchise fee of $30,000, which is essential to secure your franchise rights. Additionally, potential franchisees must be prepared for ongoing costs, including a royalty fee of 5% of gross sales and a marketing fee of 2%. It’s crucial to assess your financial readiness and ensure you have the necessary capital before proceeding with your application.
What Are the Financial Performance Metrics for Quiznos?
Quiznos franchises generate an average annual revenue of $417,139 per unit, with a gross profit margin of 70.3%. After accounting for operating expenses, the EBITDA stands at approximately $103,015, which represents 24.7% of revenue. Understanding these financial metrics can help potential franchisees gauge the profitability of the business and make informed decisions about their investment.
What Are the Required Financial Qualifications to Open a Quiznos Franchise?
To qualify for a Quiznos franchise, candidates must have a net worth between $300,000 and $400,000. It is also recommended that franchisees have liquid cash available ranging from $220,600 to $611,000. Meeting these financial requirements is essential for securing financing and ensuring that you can effectively manage the ongoing operational costs associated with running a franchise.
What is the Breakeven Time for a Quiznos Franchise?
Franchisees can expect to reach their breakeven point within 12 months of opening their Quiznos location. This rapid payback period can be appealing for investors, as it indicates a potentially quick return on investment. However, achieving this breakeven point depends on various factors, including location, management, and market demand, so careful planning and execution are vital.
Quiznos Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Quiznos Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 201 | 165 | 156 |
| Net Change YoY | -36 | -9 | |
| Franchised Units | 201 | 165 | 156 |
| Net Change YoY | -36 | -9 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Franchise Overview
Quiznos is a well-known fast-casual restaurant chain specializing in toasted submarine sandwiches, salads, and soups. Established in 1981, Quiznos has built a reputation for quality ingredients and innovative flavor combinations. With a focus on providing a unique dining experience, the brand has expanded its reach across the United States and internationally, serving millions of customers each year.
Investment Requirements
To become a Quiznos franchisee, the initial investment ranges from $220,600 to $641,000, depending on various factors such as location and store size. The initial franchise fee is set at $30,000. Franchisees should also be prepared for ongoing royalty fees of 5% of gross sales and a marketing fee of 2%. A minimum net worth of $300,000 to $400,000 is required, along with cash reserves between $220,600 and $611,000.
Financial Performance
Quiznos franchises have demonstrated strong financial performance, with an average annual revenue per unit of $417,139. The highest reported annual revenue for a single unit reached $5,468,736. Franchisees can expect to break even within approximately 12 months, making it a potentially lucrative investment for those looking to enter the fast-casual dining sector.
Franchise Growth
As of 2023, Quiznos operates 156 franchised units, a decline from 201 units in 2021. This trend indicates the challenges the brand has faced in maintaining its franchise network, but it also presents opportunities for new franchisees to enter a market with untapped potential. The company has consistently maintained one corporate unit, ensuring a direct connection to franchise operations.
Operational Support
Quiznos provides comprehensive support to franchisees, including training programs, marketing assistance, and ongoing operational guidance. This support is crucial for new franchisees as they navigate the complexities of running a restaurant. The brand emphasizes franchisee success through robust training and resources, helping owners optimize their operations and profitability.
Brand Recognition
Quiznos has established a strong brand presence in the fast-casual dining market, known for its commitment to quality and flavor. The brand's unique selling proposition lies in its toasted subs, which differentiate it from competitors. With a focus on innovation and customer satisfaction, Quiznos continues to evolve its menu and marketing strategies to attract and retain customers in a competitive landscape.
Frequently Asked Questions
The initial investment for a Quiznos franchise ranges from $220,600 to $641,000, which includes the franchise fee, equipment, and other startup costs.