TSFA Letter to Franchisees: We Are Your Advocate
Quiznos' Association Addresses Company's Divide and Conquer Tactics
BOULDER, Colorado (Blue MauMau) - In a "Message from the President" to Quiznos franchisees, received anonymously by Blue MauMau, Toasted Subs Franchisee Association interim president Danny Kessels asks, "Haven't you ever wondered why so many Quiznos franchisees are struggling or why so many close down?" Kessels explains that past and present executives of Quiznos disingenuously blame it on the franchisees. "They say these franchisees are simply bad operators and can't run a profitable business." Although he acknowledges that there are some bad operators, he says TSFA is not here to represent bad franchisees. But he adds, "It is hard to believe that Quiznos is so unlucky as to have over half of its franchisees, ones that Quiznos approved, be poor business people."
Since Quiznos refuses to talk or even acknowledge the TSFA, Kessels said they have no choice but to take their issues to an independent court system. He feels CEO Greg Brenneman and Chief Legal Counsel Richard Emmett have tried to make Quiznos look like a helpless victim of the courts. "They want you to believe that they are being picked on by a ' young lawyer' who is only interested in collecting a legal fee." But in reality, Kessels said, "It is the height of hypocrisy for Quiznos to belittle franchisee efforts to pursue their legal rights in court."
The letter reminds readers that Quiznos has sent out countless default notices threatening legal action for violations for such things as burnt out light bulbs and tip jars on counters. Kessels said, "Much like its franchise agreement, Quiznos appears to believe that access to the courts is an equally one-sided street."
Disappointed in Wisconsin Ruling; Will Pursue Other States
Although Kessels tells franchisees that the TSFA is disappointed in the court decision in the Wisconsin lawsuit, he clarifies that the judge did not dismiss all of the claims on their merits. The judge invited plaintiff franchisees to pursue their claims in state court, which they will do if their motion for reconsideration is denied. He explained that the remaining claims will be appealed to the appellate court for further review. They will also continue to pursue legal cases in Illinois and Colorado.
Members Urged to Look at Other Associations
The TSFA points to other independent franchisee associations in resolving their problems. Kessels said, "You may not realize this, but Subway franchisees have a franchisee-controlled food co-op." The letter shows the comparison according to the website BizBuySell: Of 4650 Quiznos restaurants currently opened, 364 are for sale. Subway with 21,000 units has 53 for sale.
He attributes this to the strength of the association in having more control Others include Burger King, McDonald's, Dominos, 7-Eleven, Papa Johns, The UPS Stores, Wendy's and KFC, to name a few.
Kessels Blasts Brenneman's 60 Percent Prediction of Franchisee Profits
TSFA's president also takes issue with Brenneman's recent comments stating he expects franchisee profits to increase 60 percent overall in the wake of improvements to the system. But he asks, "60 percent of what? What was the average Quiznos profit last year? Given the fact that so many Quiznos were at or below break even, this number can't be very high." He doubts if the company will ever release these embarrassing low numbers. He also reminds operators that they are still waiting for "the extra $15,000 in profits that Mr. Brenneman promised all franchisees at the beginning of the year."
In closing, Kessels vows that TSFA will continue to pursue the rights of Quiznos franchisees until all issues are resolved. And he urges, "If you are not already a part of TSFA Legal Action Program and you wish to join us in this very important effort, please contact the TSFA."
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Read the full letter from TSFA:
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