FranchiseVerdict
Quiznos logo
FV-02084·MODERATEExcellent91

Quiznos

Food & Beverage - Full ServiceFranchising since 2018Website
Investment
$214K – $649K
22nd pct Full Service
Avg revenue
$394K
3rd pct Full Service
Royalty
5.0%
15th pct Full Service
Units
152
88th pct Full Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $214K – $649K including a $5K franchise fee, 5.0% ongoing royalty.
  • Average unit revenue of $394K/year (median $369K).
  • Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 2624 loans (below the industry average).
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Quiz Holdings, LLC
Parent company
Quiz Franchisor, LLC
Incorporated in
Delaware
HQ
4700 S. Syracuse St., Suite 225, Denver, Colorado 80237
Auditor
Ernst & Young LLP
Audited financials
Franchisor revenue
$32.3M
vs $39.2M prior year
⚠ Going-concern note
Disclosed in FDD 2025
Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Quiznos unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $393,944
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $214K–$649K
Working capital
$
FDD reports $35K–$40K

Unlevered ROIC · per unit

12%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$55K
EBITDA margin
14.0%
Total invested
$469K
Payback
102 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Quiznos units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$552K

on $2.8M purchase

Total debt

$2.2M

SBA $1.4M + senior + seller note

Overview

About

Franchisees operate quick-service submarine sandwich restaurants where customers order freshly made toasted subs with customizable toppings. Day-to-day operations include food preparation, inventory management, staffing, cash handling, and customer service during lunch and dinner rushes.

CEO
Neel Mahendra Patel
Founded
2018
FDD year
2025
States available
34

Item 7 · what it costs

The Vitals

Total investment
$214K – $649K
All-in to open one unit
Liquid capital
$35K – $40K
Cash you must have on hand
Franchise fee
$5K
Royalty
5.0%
Gross Sales · typical 6–8%
Ad fund
4.0%
typical 3–5%
Total fee load
9.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$394K
Per unit, per year
Median gross sales
$369K
Item 19 type
Gross Sales
Sample size
95 units
vs category median 15 · large
Range (low → high)
$86K$790K
Cohort dispersion
Transparency
4 / 5
vs category median 4 / 5 · typical
Revenue rank3th
vs Food & Beverage - Full Service peers
Investment cost rank22th
Lower investment ranks lower (better)
Royalty rate rank15th
Lower royalty = lower percentile (better)
Unit count rank88th
vs Food & Beverage - Full Service peers
Risk score rank33th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
152
Opened
7
Last reporting year
Closed
11
Turnover rate
7.2%
Company-owned
1
Corporate units in the system
% franchised
99%
vs corporate-owned
Net growth (yr3)
-1.9%
Net unit change last year
3-yr CAGR
-9.0%
Compounded over last 3 years
2023
151-3
Franchised units
2024
154
Franchised units
2025
166
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 23 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Available · 23 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
2,624
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

56
Risk · 0-100
MODERATE56 / 100

Quiznos presents elevated risk due to system contraction, historical fraud litigation, undisclosed profitability data, and unprotected territory in a declining sandwich category.

Score breakdown · what drove the 56 / 100 rating

  1. 01MINORDeclining unit count (-1.9% YoY) indicates system contraction and possible franchisee struggles
  2. 02MEDNo disclosed net income data prevents accurate ROI assessment despite $393,944 average revenue
  3. 03HIGHCompleted litigation (2014-2015) for fraudulent schemes and racketeering raises historical trust concerns
  4. 04MINORUnprotected territory creates direct competition risk from other Quiznos locations
  5. 05MINORWide investment range ($213,900–$648,800) with vague cost breakdown suggests inconsistent unit economics
  6. 06MINOROnly 152 units remaining suggests significant attrition from peak system size

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Protected territory
No
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Colorado

Item 11

Training & Operations

Classroom training
60 hrs
On-the-job training
88 hrs
POS system
authorized point-of-sale system
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

100 numbers

Locked
(515) 267-••••
IA
(713) 647-••••
OK
(434) 689-••••
OK

One-time purchase · CSV download · Validation questions included

FDD download

Quiznos · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above