QUIZNOS Securitization (structured finance) via QFA Royalties

Hi All,
I'd like to be in touch with a current or ex-franchisee Quiznos concerning the class actions. As a French academic, I'm writing a paper about the dangers of royalties securitizations, especially on franchisee/licensee interests. Quiznos has launched one of them through QFA Royalties LLC in the beginning of 2005. It seems to me that the economic pressure that Quiznos put on its franchisee is largely caused by the multiplication of its own creditors. In fact, the affiliate QFA Royalties LLC has been set-up to securitize its royalties by issuing bonds which were subscribed by private equity investors. These ones became new lenders or creditors of the group. They needed to be paid (before 2025 apparently). What was the best solution than increasing the economic pressure on the franchisees to refund the bonds?
I'd like to get some feedbacks from you. I've read a few complaints before the courts, they just evoke implicitely a bit the securitization originated by Quiznos ; they deal more on the general business model through the web of 30' affiliales.
Any idea or info?
Thanks,
Alex

Another article

Sorry, try this link.

http://www.onenewspage.com/news/Business/20110110/18613521/What-Do-Mortgages-Madoff-And-Quiznos-Have-In.htm

Quiznos reopen deal, not such a deal

Considering an offer to reopen a Quiznos for $12,500? Consider:

1. Quiznos corporate gets 11% of gross.
2. Quiznos corporate makes money off sale of supplies to the stores. Store owners are required to purchase everything from Quiznos, often at higher prices than the same or better supplies are available locally.
3. Quiznos corporation conducts surprise audits to catch store owners who purchase supplies locally, and collects "fines" from the owners by withdrawing cash from the owner's bank account without explicit permission. (You will agree to this when you sign your lengthy Quiznos franchise agreement).
4. Quiznos corporate sets retail prices. Owners who charge more are fined.
5. Quiznos corporate conducts financial audits of owners periodically that result in more fines.

You are thinking Hey! I can get this Quiznos store and fixtures and get in business for only $12,500 - How can I lose? You can lose 60-70 hours of work every week, your entire working life. You will have to sign a lease, and the landlord will require you to pledge your personal assets against the lease. You can lose all of your non-exempt assets in bankruptcy when your are deep in debt to your landlord and Quiznos because the store revenue is not sufficient to pay the bills.

Quiznos cuts prices and issues coupons for free food in order to pump up volume to maximize profits for Quiznos Corporate at the expense of the store owner. This practice caused hundreds of Quiznos owners to go broke.

Still interested?

Guys Quiznos is now asking

Guys Quiznos is now asking Franchisee owner to take loan from them to help them meet the current operational cost

I own a quizos

If you want your finances and life ruined then you are a good candidate to own a Quiznos.

Quality Food Has No Place At Quiznos

In his Deposition at a recent trial involving a Q franchisee, Qtard VP Mike Manning said Q serves Cutter quality beef. Below is the list of beef quality, from the top cut to the dog food. Can you guess what grade of meat Quiznos FORCES franchisees to sell? Yup, Q is selling dog food quality "Prime" Rib/Beef to Q franchisees, and at US Prime prices. So it's the franchisees at fault for lousy sales and restaurant closings? The next time Q tries that lie you'll know the truth.

My big question is how a good, "Christian" man like Greg Brennenman can stand idly by while Q franchisees are being forced out of business, losing their homes and live savings, so Q can step in and sell the "assets" to new suckers for pennies on the dollar. Talk about a BIG disappointment. GB should be ashamed of himself for making a deal with the devil.

U.S. Prime - Highest in quality and intramuscular fat, limited supply. Currently, about 2.9% of carcasses grade as Prime.[7]
U.S. Choice - High quality, widely available in foodservice industry and retail markets. Choice carcasses are 53.7% of the fed cattle total.
U.S. Select (formerly "Good") - lowest grade commonly sold at retail, acceptable quality but less juicy and tender due to leanness.
U.S. Standard - Lower quality yet economical, lacking marbling.
U.S. Commercial - Low quality, lacking tenderness, produced from older animals.
U.S. Utility
U.S. Cutter
U.S. Canner

Why Q's Fail - Beyond The Greed

of (p)Rick and Brannanman. It's because the actions the Q needs to take to survive is exactly the opposite of what franchisees need to do. At Quiznos the #1 revenue stream is selling food and supplies to franchisees. So with sales and revenue falling Q raises prices to franchisees, buys cheaper, lower quality product and keeps the price the same to franchisees, increases discounting, and increases the number of inspections to enforce purchasing agreements. To survive franchisees need to cut costs, scale back or eliminate poor selling items, find cheaper food and supply sources, and limit discounting. They can't do that as a Quiznos franchisee. They're stuck with rising wholesale prices, poorer quality, and less sales. They're required to sell every sandwich on the Q menu. The result is the closing of more than 1500 in the last two years with more to come.

Quinzos Three Weeks Of Advertising

Quiznos will run 3 weeks of advertising in 1st Quarter 2009? What happened to the 4% off the top Quiznos is taking every week for advertising? What is going on in Denver?

Q Franchisees - No Advertising For You

Well, the Qtards have done the Qscrew to Quiznos franchisees again. Despite having an 80 million dollar ad budget and despite an ad blitz by Subway the Quiznos corporate morons have decided NOT to advertise until the end of March. Why? Is it because the stores are selling so much food that they don't need the advertising? Ah, no. Like Crazy Eddie we're GIVING IT ALL AWAY. Of course it could be because of the reimbursements Quiznos paid us to give away the free sandwiches. hahahahahahahahahaha. Could all of our ad money be spent on the free sub coupons that the Qtards have been spitting out? Nah, it just seems like it. That's a hell of a lot of coupons - even for Qtards. Or could it be that they don't feel the latest event is worth advertising? Could be. Black Angus Peppercorn is another loser that shows no originality - just like our advertising - and it has a budget busting food cost - not that the qtards care. Question for The Dicks and bean counter Dino - What happened to our ad money? Question for the rest of you - Do you now understand why ad co-ops run by franchisees are so important in a franchise system? Co-ops, Co-ops, Co-ops. With a few exceptions if a system doesn't have them they than DON'T invest in it. And Q ISN'T one of the exceptions. Question for Darnelle - Can you understand why so many of us are so frustrated? And by the way, the # of operating Quiznos now stands at less than 4250. Quiznos Sucks

Quiznos Corp doesn't have the guts...

Quiznos Corp doesn't have the guts to allow a food co-op, an advertising co-op. The words "accountability" and "Quiznos' should NEVER be used in the same sentence.