Quiznos Responds to TSFA Letter
"Young Attorney" Again Tries to Muster Support Despite Losses and Meritless Claims
DENVER (Blue MauMau) - After a lengthy interview this morning with Richard Emmett, Quiznos' Chief Legal Officer, a spokesperson for the company released the following statement:
This letter reads to us as though it was authored by the same young attorney who represents a very small and non-representative group of franchisees for their signature. This young attorney recently suffered major courtroom losses in the copycat cases he filed against Quiznos. It appears he is now trying to muster some moral and financial support to keep his cases alive and fees running in what the court has found to be meritless claims against us. It is also worth noting that, at the same time, he has turned his efforts to pursuing other franchisors. Unfortunately, the real losers in this situation are the franchisees who are paying his fees.
We have been and remain committed to franchise owner profitability. It is our number one priority and it plays a role in every decision that we make. Over the last year, we have improved communications with our franchise owners, returning calls within 24 hours and sending weekly executive voicemails to update the entire system. We brought down food and paper costs significantly and reduced complexity in our stores, leading to more efficient in-store operations for our franchise owners. And now with the launch of Sammies, delivery/catering and our new advertising, we are seeing large improvements in both franchise owner sales and profitability. We receive very positive franchise owner feedback daily on these changes.
By any objective measurement, we’ve come a long way on our quest to improve franchise owner profitability. To be sure, as in any franchise system, there are individual Quiznos units here and there struggling and we will continue do our best to help them; but our overall system wide improvement is significant and heading in a positive direction, and we have the objective data to prove it . These improvements have been recognized by our franchise owners and we intend to continue working very hard on their behalf. We are very excited for 2008. Happy holidays to everyone.
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Related reading. . .
- Franchise topic:

Quiznos wrote: "We have been and remain committed to franchise owner profitability. It is our number one priority and it plays a role in every decision that we make. Over the last year, we have improved communications with our franchise owners, returning calls within 24 hours and sending weekly executive voicemails to update the entire system. We brought down food and paper costs significantly and reduced complexity in our stores, leading to more efficient in-store operations for our franchise owners. "
Here is the rub: Thomas Schelling won the Nobel Prize in Economics for demonstrating that true commitment entails giving up some option.
His classic example, which I update, is this. When Cortes landed on the Mexican shores, many of his troops wanted to retreat back to Cuba. To demonstrate his commitment to going forward, Cortes burned his boats and convinced his troops that this was for the best.
If Quiznos is committed to franchise operator profitability, then they have to turn over some control wrt pricing to the operators. Otherwise, they should flee back to Cuba.
Michael Webster PhD LLB
Franchise News
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
Come to think of it, I remember seeing that video too. I'm in the Mid West area and it was some reddish blonde woman that was cleaning tables out in her dining room (while talking) and then the video shows her slicing the bread in half lengthwise and then painting something on it prior to toasting it. I can remember that statement about making the money and paying off the loan early but I don't recall if there was an actual dollar amount mentioned. Anyway, by the time I opened my store, that spec (regarding the bread prep procedure) had changed (along with some of the other specs/menu items). I found it odd that some of my training materials that were provided to me by Quiznos weren't applicable to what I was going to be selling in my store when my store would be opening. Yet I had to study them knowing that I wasn't going to even need to know them because they were going to be on our testing exams. How messed up is that??? My whole experience with this concept has been an expensive lesson overall.
I find it funny to read Emmett's claims about overall cost reductions. Some things have gone down....but they are off set by the price increases of other items. A couple of for instances:
Recently Roast Beef climbed over 15%. In addition tuna has jumped up 9%. Breads (white and wheat) up $.39/case. Rosemary Parm bread up $.93/case. Our capicola has jumped up 3%. Also our Broc and cheese soups went up $4.50/case. Our BIB's (Bag In The Box) soda/syrup is up $2.50/bx. Guacamole is up $2.23/case. All of our Frito Lay products are up. Our lettuces (both Romaine and shredded iceburg) are all up. One of our pepper bar freebies (Horseradish sauce) is also up $1.90/case. Our basil pesto sauce is the same price per ounce...but they increased container sizing in the case and now that pushes up our cost $21.15 each time you need to reorder. That doesn't benefit us as the franchisees. It's a dressing that doesn't move cuz it's on one Sammie now (used to be on the Caprese...but we dumped that pig). Chipotle Mayo up $1.67/case. There are others too that I am missing, maybe someone else can chime in. These are facts. So when you lower costs on most our pepper bar items, Mr. Emmett, realize that we DON'T charge customers to utilize that...it's free. So you can lower all you want. Unless it's free to us..it's still a cost of doing business. That's Economics 101!! Take those items right out of the equation as they are skewing that already "fuzzy math" to begin with.
Granted they did lower costs on our napkins (also changed to a cheaper "green" type...a good idea), some of our paper products such as sub wrap, Tshirt bags....(again I ask why were we being so blatantly overcharged for these to begin with) and flatware, chili (dropped $3.14/case), raspberry lemonade (dropped $23.81/case...that's great but I can't help but wonder why we were charged over $50.00/case to begin with???), our ham (down $.10/lb), chicken strips (down $4.00 case....amounts to $.11/lb drop...somewhat significant) and turkey too (almost $.10/lb). However all our cheeses have skyrocketed!! Cheeses on average have gone up 20% (swiss 22%, cheddar 18%, mozz 22% increases based on mid '07 pricing).
It all boils down to the simple facts. Some items have dropped, but the increases outweigh the reductions. Now let's add in the additional increases for energy costs and some of the other incidentals and you should see an overall increase of your costs of doing business Mr Emmett. Again, release the P&L's of your owners to an independent auditor to find out the TRUTH.
Thinking of owning a Quiznos??? Tread carefully!! Very carefully!!!
Thinking of owning a Quiznos??? Tread carefully!! Very carefully!!!
I'm surprised that none of the attorneys commented on Emmett's swipe at his adversary.
Not only is it unprofessional, in speaking of gathering "moral support" Emmett only draws attention to questions which have been raised about his own company's conduct and in making reference to the youth of his adversary he highlights the reality of a clubby little franchise bar where nothing much ever changes.
I do not agree with all of the tactics employed by Emmett's adversary. But I would disagree on the merits, not based on how young or old the attorney is. If Emmett is as old as the hills, one would think Emmett would have acquired some class.
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
If it is true it is an outside of the UFOC earnings claim.
The Truth Shall Set You Free!
TIF
The Truth Shall Set You Free!
TIF
Guys and gals,
We don't know if the Quiznos in-house attorney, Emmett, wrote this. The article says only that a spokesperson released the statement. This is a Quiznos statement on the matter - and we are left to speculate on the personalities involved in the crafting of the response.
In other words, it ain't Emmett who is "snarky." It is Quiznos.
Guys and gals,
I liked the letter from Quiznos. It had clear claims of progress in the past year to address better relations with franchise owners and to improve profitability. The company claims to:
So, let's check the easiest verifiable claims.
I suspect the answer is yes.
Regarding raising profitability, the company's public statements show that it is at least looking at some of the right things to increase unit profitability. If management truly brought down food costs, it shows something incredible is happening, given the current economic environment that is hitting the industry. (See article, Food Prices Cheap No More)
I actually agree totally with Paul. Never dis you opposing attorney. If he's/she's really bad, you want 'em to stay n the job. If he's/she's really good, you will pay for the bad manners.
Always stay on good terms with opposing counsel. Of course, in house attorneys often lack the good manners of trial counsel. In house people live in sheltered employment environments where they learn only to suck up to their own management.
It's gotta be tough having only one client who can put you out on the street tomorrow.--
Richard Solomon, FranchiseRemedies.com, has 44 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Paul, I tend to ignore attorney swipes.
For example, recently, I had an opposing attorney tell my client that he got these type of injunctions all the time! Oddly, he failed to get his injunction this time.
I bring this up because the attorney is a fine lawyer; but we, and I mean everyone, can get so tightly wound up in our own world view that we fail to see that we may be wrong.
How much worse could it be for Emmett if the "young lawyer" actually wins in the state court? I wouldn't bet on the adequacy of the Quiznos Item 8 disclosure - despite what the Federal Judge said.
Michael Webster PhD LLB
Franchise News
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
They are doing a great public service. By being such bloody awful people/company, they provide a vehicle we can use to show people what can happen to you when you are about to get into bed with a poxed doxie.
Quiznos is the Due Diligence poster child!--
Richard Solomon, FranchiseRemedies.com, has 44 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
There is a tremendous difference between in-house counsel and outside litigation folks. It is so easy to be theorical when you never have to be practical. In-house counsel are observers at best and poor litigators in any event.
The Truth Shall Set You Free!
TIF
The Truth Shall Set You Free!
TIF
a sign of ignorance. They always come from somemone who is not the producer of the "victory", but merely some paper pushin, suck up working on his next bonus/raise.
My former neighbor was a classic one of these - an in house records finder, little more than a litigation support level mentality, who would bruit it about that "he" had just won this or that case for his company, when in fact he wasn't even allowed to be one of the attorneys of record.
I actually had to gob smack some ponce on the Ford Motor legal staff long ago who was on a trip with us and decided to beat up on his wife and kids after losing a shuffleboard game to his old lady. Turned out he was also a coke head and regularly abused his family. This Emmet guy reminds me of that really awful person. These are people with real self esteem issues. He always talked about his Viet Nam combat experience, but was in reality a rear eschelon kind of suck up who turned out not to be the fine tuned warrior he said he was.--
Richard Solomon, FranchiseRemedies.com, has 44 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
The more elder in-house attorney Emmett might have to eat his words if the "young lawyer" actually won a case for Quiznos franchisees. Fortunately for Emmett, the "young lawyer" has been losing.
See: www.bluemaumau.org/judge_dismisses_federal_lawsuit_against_quiznos
Hmmm. I see your point.
Judging from Quiznos public pronouncements, management has the right intent. They know where to focus and they seem to be trying.
But there seems to be a discrepency between what management is claiming and what franchisees are experiencing. Management has yet to execute through the system and to deliver the fundamentals on its initiatives.
For example, having corporate support services reply to 100% of franchisees within 24 hours is 100% do-able - even if the answer is that they are working on an answer. And 4 to 5 days to answer emails? YIKES!! These are signs that management has not yet succeeded in executing the simple stuff.
Now here is a sage and balanced post!
Skeptical but hopefulIt is a bit foolish to either pin all of your hopes on current management or to sit on the sidelines waiting for success to come to you. Greg Brenneman is not a saint, he is a well respected business leader that understands the dynamics of turning around a brand and creating profit for those that actively participate. He will not magically make you profitable if you are not proactive and take advantage of the opportunities to build your business. While history justifies your skepticism, your future success requires your participation - otherwise the outcome is gauranteed failure and financial ruin.
The Truth Shall Set You Free!
TIF
The Truth Shall Set You Free!
TIF
A helicopter pilot with passenger is lost in a fog bank in Seattle. Through the fog emerges a tall building right in front of the hovering craft.
The pilot tells the passenger to pick up the yellow pad and write on it in big letters "Where are we?" and to hold it up to the person in the window of the building who is staring at them. He does.
The person inside the building grabs a pad and writes back in big letters "You are in a helicopter."
The pilot says - "Ok I now know where I am. That has to be the Microsoft building, because the answer is perfectly correct and utterly useless".
Richard Solomon, FranchiseRemedies.com, has 44 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
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