Quiznos Board Member Becomes President
Former Yum Brands COO and CFO Named as Quiznos President
DENVER - Quiznos announced the appointment of David Deno as president. Deno was managing director of CCMP Capital and a board member of Quiznos. Deno brings considerable experience in building shareholder value for public companies.
"Before joining CCMP, Deno spent more than 15 years with YUM Brands and PepsiCo. As chief operating officer — and, previously, chief financial officer — he was instrumental in growing YUM Brands and building shareholder value after its spinoff from PepsiCo in 1997. Deno also held senior positions in YUM's International and Pizza Hut divisions. Prior to joining YUM, he worked for Burger King Corporation for eight years in various finance, real estate and operations assignments." (Fast Casual)
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There is a revenue stream coming in from new franchise sales.
There is a revenue stream coming from franchise royalties.
There is a revenue stream coming in from the vig asasociated with franchisee purchases from vendors.
Existing franchisees, desire a slow death because "life is precious" and a dignified end of life exit strategy isn't going to happen. They will keep on paying Quiznos right up to the door of the bankruptcy court, losing their "whatever assets" anyway.
No one seems to be winning these wrongly sorted out lawsuits, so there are no big judgments against Quiznos.
Am I missing something? If my math is correct, the "turnaround" doesn't prioretize making franchisees profitable beyond marginal quasi starvation existence. Maybe that won't make for a big public securities offering, but think of the lawyers they subsidize. It's hard to hate folks who pay a lot of money to lawyers. --
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
And that list does not even mentioning CEO Greg Brenneman, known best for helping turn around troubled Burger King and Continental Airlines.
Quiznos says that there is no basis to the rumor that Brenneman is leaving.
Ms. Janet Sparks, investigative reporter, and Don Sniegowski, editor, had a conference call Thursday morning with a spokesperson for Quiznos about rumors that the chain's CEO was stepping down. They said that there was no substance to such a rumor.
The new president will focus more on operations and development.
The YouTube video that satirizes Quiznos' franchise problems was also posted here.
It has some 20+ comments on it. There's also a comment on the YouTube site.
Are you posting under this article because you are saying that Deno, the new president of Quiznos, has to tackle these challenges? Is the Yum Brands ex-COO capable of tackling these tough issues?
You don't want QSR experts and people who want stock or other incentives what do you want? Maybe a good hearted altruistic self-less person like Jimmy Carter might work for free?
The Truth Shall Set You Free!
TIF
Quiznos is building models. One is a company model - what kind of revenue dynamics are being targeted?
One is a franchise system model - what kind of financial dynamic is required to keep the franchisee network marginally in positive cash flow - so that they will stay around and keep paying Quiznos, thinking that in some long run pipe dream they will improve their lot? This is called the "how little can we feed the fools?" model.
As for dreams of franchisees winning lawsuits, when you look at the lawsuits and how they are configured, most of them are ridiculous. But, when all you will do is work with a free lawyer, you get what a a free lawyer has - not much. There are no Dady & Garners and no Bobby Zarcos out there. If you want D&G level and Zarco level and Richard Solomon level representation, that's who you have to hire. Lawyers who bring antitrust claims in the Quiznos scenario are simply fools. God knows, we saw the disaster brought on the Coffee Beanery franchisees by so called "well meaning" lawyers who "believed in" their clients' cause. Well meaning bozos get bozo results.
Wishful thinking is not a substitute for harsh realistic analysis.
What might have happened in other countries is no indicator of what will happen in the USA. --
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
Guest writes: "If anyone ever told me that a franchisor would actively work to screw its franchisees I would never have believed it, until now."
Why wouldn't you have believed it?
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
'If a guest walks into my store, takes up a parking spot, soils my floor, sucks up my airconditioning, listens to my Muzak, occupies a position in the order line, orders a made-to-order product,occupies a table AND orders a $2.00 sammie, I lose money on that transaction.'
I guess then you are working at capacity at all times if you don't want people coming into your store(s), to purchase a $2.00 sammie, even if you make a profit on the sandwich.
If not, then you are losing money. Your parking spot, air conditioning, Muzak are all sunk costs (you are paying them anyways).
This is the way the zees in the franchise system I worked for thought too. They thought it was better to lose a 'little profit' sale than take it even though the person doing the work was going to be there and would have nothing to do. So, they don't get the profit, yet they are still paying for someone to sit there doing nothing.
the model is changed. And that simply isn't going to happen. Despite the carnage, they continue to sell franchises, and FranWads keep on buying them. For so long as there are morons out there with investment money,the charade will continue, no matter what manner of clown troup is in charge.--
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
She did a big cover story for Franchise Times and discussed the securitization of the royalty stream.
These securitizations were pioneered by David Pullman (famous for Bowie Bonds and also for getting voted out of his ritzy Manhattan co-op--the legal case coined the real estate term "to Pullman") but as applied to franchise systems, securitization of future royalties may deincentivize the franchisor to the detriment of the franchisees.
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
You mean to say that in order to be qualified to run Quizno's the person needs to have run a Quizno's restaurant?
Oh by the way I don't remember ever reading that Ray Kroc ever ran a McDonalds, however he built the system and ran the company.
The Truth Shall Set You Free!
TIF
The Truth Shall Set You Free!
TIF
What kind of business would you recommend a veteran consider?
The Truth Shall Set You Free!
TIF
P.S. You're a poetic - "We have "carnage" from the "garbage" of ineffective regulation of franchising." Have you thought about creating a Best of The Item 20 Ranter" blog?
The Truth Shall Set You Free!
TIF
Am I sensing someone that might be a little jealous that someone is making money as a Quizno's owner???
If you wanted to be constructive with your criticisms of this owner, why not ask him/her to register rather than posting as a guest so that you may be able to find out why he/she is making money as a store owner (via private message). Instead you assume that he/she works for Quizno's.
Admit to yourself that some store owners might be making money and that they have just as much right as you to post it on this website.
As I recall, being an God Fearing Anglican, our Lord and sometimes saviour, advised us to render unto ...
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"
Your attitude is what Quizno's needs and I applaud you! You are not letting management off the hook but you do want meaningful results.
The Truth Shall Set You Free!
TIF
The Truth Shall Set You Free!
TIF
Don't believe if the management team fails the whole system is doomed.
The franchise owner problems, Baber's suicide, an independent franchisee association fighting for system-wide reform and many Quiznos lawsuits have yet to materially impact the goodwill of the marks with consumers. The Zagat and other consumer surveys shows that. Consumers rank Quiznos higher and higher.
If the current "dream team" fails to turn the franchise store operations around, Brenneman and others will be fired. Any future shareholder would deeply discount the value of the Quiznos stock because of franchise grumblings, just like the stock market did today due to low sales growth of McDonald's franchise owners.
Like any other troubled franchise system, the Q board will have to hire yet another team to take it in a new direction. Maybe one that listens to complaining franchise owners next time.
IMO, should the current officers leave, the network will still have thousands of franchises continue, despite operational problems. The system most certainly will continue. And if we know anything about Quiznos franchisees, we know that these owners will collectively and vocally demand better management and make life difficult for the head office until they get what they want - store profits.
One the difficulties is that the current lawsuits make it unlikely that Quiznos is going to do a Fred Deluca, change their spots, and invite substantial and meaningful franchisee involvement.
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"
Because you have a Quizno's you somehow think you are imbued with the supreme knowledge of the credentials required for a CEO to rehabilitate the company?
You run a low volume sub shop man!
The Truth Shall Set You Free!
TIF
P.S. Name a suitable CEO candidate.
The Truth Shall Set You Free!
TIF
I occasionally attended church services there. My recollection is that Anglicans do not fear God or anything else, for they are the elect of The Lord, immune to all sanctions.
Here in Texas there is even a poem about them that goes as follows:
We're the sweet elected few, the rest of you be damned.
There's room in hell for all of you. We can't have heaven crammed.--
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
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
that the court in Wisconsin has recently ruled in its favor on the franchisee purchasing control issues, will be simply to take its time and work Plaintiff's counsel in these lawsuits to death. Eventually plaintiffs will run out of lawyer momentum (not that they had any to begin with) and fatique will set in on the franchisees and their lawyers.
At that point the suits, if not already won by Quiznos, will be in such posture that an offer by Quiznos to pay the franchisees' attorneys will get those attorneys happy to approve any chump settlement.
It may be prohibited for a franchisor to obstruct the establishment of a franchisee association, but there is no law or contract language requiring the franchisor to "recognize" a franchisee association. Some formal statement of recognition (whatever that's worth) and some chump change payment to the plaintiffs' attorneys will probably be how it ends up--
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
Il veut se faire a craindre.
Chanson de Roland (About Charlamagne - "Tired of being loved, he wished to be feared." (Very old French)--
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
What business, not a franchise, would you recommend to a veteran?
The Truth Shall Set You Free!
TIF
I went out to the open mall with my family Saturday afternoon. The Johnny Rockets was so full that we had to wait for 15 minutes to be seated. Then we later went to the Cold Stone Creamery to grab an ice cream and waited in a line that went out of the building.
I considered just how such lines would discourage a vet into thinking about buying a franchise. Franchises are owned by people who more than not have to learn that trade from the franchisor. The franchise model is set up to recruit neophytes, teach them the trade and provide some support to their ongoing operation.
What these vets may not know is that people make better choices at what they know best - their trade. Vets can be easily hoodwinked or make bad business decisions outside of their expertise. A soldier should avoid starting a franchise where he has to learn how to be a baker, a creamer or candle-stick maker.
Speaking of which, our government sure tries hard to help vets learn new skills by either offering university loans OR patriot express loans to own a business. Wonder why? What has the government learned about returning soldiers after 200+ years of wars?
We finally baulked at the Cold Stone Creamery. On a winter day, the line was just too long. Besides, we were still somewhat full from our lunch at the Johnny Rocket's franchise.
As we left, we piled into our car, parked next to an indendent bagel and bakery shop. I noticed that the bagelry was EMPTY. As I drove away I thought to myself, "at least the owner didn't have to pay a franchise fee and royalties."
Guest writes: "The whole purpose of the suits (from one persons perspective) is to have Q recognize an Independent Franchise Owners Association, be it the TSFA or some other similar entity."
The Meineke Dealer's Association was born out of one of the largest class action franchise suits, with the trial decision being overturned on appeal.
However, the negotiation which followed the appellate's decision was not undertaken by the same attorneys fighting the court case -largely about the use of the advertising fund.
My point is that the current Quiznos Association seems to have no other plans other than to try to embarrass Quiznos sufficiently with its pleadings to obtain a pay-off - and in this regard, I agree with Richard's assessment of how the case might evenutally end up.
An independent franchisee association has to do something for its members, quite apart from any lawsuit, which improves the individual stores profitability.
And in this regard, a sound local advertising and search engine marketing strategy is a critical component of any QSR Independent Franchisee Association.
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"
the German word for ornament--
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
You could correct your spelling errors with the edit feature and do other cool stuff.
P.S. I'm 5'2" and don't need no stinking lifts, merci.
The Truth Shall Set You Free!
TIF
The act of buying a Quizno's equals staying at a Holiday Inn Express last night! If I'd of known this I'd never have posted what I posted.
I'm deeply contrite and heartily sorry.
P.S. I will try to behave hoping to reach the penultimate of Richard Solomon's beneficence!
The Truth Shall Set You Free!
TIF
You certainly seem to pay a great deal of attention to my posts.
The Truth Shall Set You Free!
TIF
The Truth Shall Set You Free!
TIF
Mercenary.
The safest and easiest career jump for a retired soldier is to work in a mercenary company. They can find a mentor there to show them how to run the business.
Craig
I am just curious why you think you are so qualified to judge a potential CEO candidate's pedigree?
The Truth Shall Set You Free!
TIF
Much more vulgar.
The Truth Shall Set You Free!
TIF