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Unhappy with Quiznos? 1-2-3 Fit not what you thought it was? Then why would you want to follow the same folks and invest in a Smashburger franchise?
You guessed it. Rick Schaden and friends (Brooksy Smith, Dan Demolli etc...) were the folks who brought you Quiznos and the myriad of lawsuits and problems they have and continue to have. They made tons of cash, leaving a trail of broken dreams, empty bank accounts and lost retirements in their wake and the failed franchisees left holding the bag.
Well, Rick decided to create a company called Cervantes Capital, located at 1515 Arapahoe Street, Tower One, 10th Floor Denver, CO 80202 Phone: 303.592.3800 | Fax: 303.592.3887 www.cervantescap.com
This company takes the money these folks have made from selling Quiznos and invests in other businesses among other things.
Rick Schaden and Brooksy Smith, invested their "hard earned" cash into a company called 1-2-3 Fit. They immediately hired Dan Demolli, who made lots of money selling Quiznos franchises, to sell 1-2-3 Fit franchises. Did we mention this company was located in the original building where Quiznos used to be headquartered in Denver? Well, after a few years and leaving a trail of broken dreams, empty bank accounts and lost retirements in their wake and the failed franchisees left holding the bag, they are moving on once again!
1-2-3 Fit has yet to close its doors, but after speaking with a majority of the remaining 20 or so clubs, only one or two is making any money, most are either in the process of closing or trying to figure out how to hold on until they make it profitable. This would not be as hard a task except for the fact that none of the franchisees we spoke with receive any help, contact or communication with the corporate office.
In recent months, corporate 1-2-3 Fit has downsized down to 1 or 2 full time employees (CEO Brooksy Smith and an accountant as well as a Sr VP of franchising who is being used as a buffer between Brooksy and the franchisees, but doesnt quit realize it yet!) They have even closed their own 1-2-3 Fit training center and corporate club and moved the corporate office into a single office located in the offices of one of their lawyers. Bottom line, they have cut off communication with their own franchise owners and eliminated all corporate marketing, support and services they tout in the UFOC. They are just collecting royalties, while they pursue...wait for it...
Yes indeed. Cervantes Capital (see above) has invested heavily into this franchise. Guess where their corporate office is located?
Smashburger Master LLC ♦ 1515 Arapahoe Street ♦ Tower 1 Suite 1000 ♦ Denver, CO 80202
Wow! That is the exact same address as Cervantes Capital (run by Rick Schaden and friends)
If you are interested in buying a franchise you can contact...wait for it...
The same person of Quiznos and 1-2-3 Fit fame. They have done such a poor job with 1-2-3 Fit that they conveniently left it out of his background on the mysmashburger website. Why would that be?
Rumor has it, and we are working to confirm it, but guess who else is helping out at Smashburger? Mr. Brooksy Smith!!! Recognize this name from Quiznos and 1-2-3 Fit fame?
So, if you are considering a Smashburger franchise, follow the money trail and the people trail and go into this eyes wide open.
We will keep you posted as we get more information. It is always fun to keep an eye on some of these folks!
General Fran - Fighting the good fight!