This morning NPR’s Morning Edition ran a really good story on the near demise of Quiznos that should be required listening for anyone thinking about acquiring a franchise. Bottom line — Greedy Franchisors will sacrifise their franchisees to save their business. Follow the logic:
- Quiznos like most franchisors controls the supply chain and national marketing. Quiznos launched a buy one, get one free campaign that severely reduced franchisee profit, bu increased the product sold by the supply company
- The lack of franchisee profits drove a significant number of franchisees out of business
- The reduced number of franchisees impacted franchisor revenue and their ability to service their debt so they sold out to a venture fund leaving their franchisees out in the cold
Click here to listen to the story
