Quiznos Lineup Gets Another Hitter

Greg Brenneman strengthens his line-up at Quizno's with the addition of Mr. Rich Emmet, a long time Papa Johns executive AND Franchisee since 1992.

DENVER, CO – Quiznos, one of the nation’s fastest-growing quick service restaurant chains, today announced the appointment of Richard J. Emmett as Executive Vice President and Chief Legal Officer, effective May 1.  Mr. Emmett will report to Greg Brenneman, Quiznos CEO, President and Partner.

“Rich brings a wealth of quick service management experience to Quiznos. His tenure at Papa John’s, not only as a member of senior management, but also as a franchisee, will serve him well in promoting the growth and prosperity of all aspects of our business,” said Mr. Brenneman.

Mr. Emmett will act as Quiznos principal legal counsel, responsible for overseeing Quiznos legal functions for both its US and international franchise systems, including franchise regulatory matters, compliance, litigation, contracts and other agreements, as well as providing general counsel on company matters. Mr. Emmett follows Pat Meyers in the Chief Legal Officer role. Mr. Meyers will continue to serve in a non-executive capacity as a Quiznos owner and director.


Richard J. Emmett has served as Senior Vice President and General Counsel since March 2002, after serving as Senior Vice President and Senior Counsel since March 1997, and has served as Secretary since October 2005. Mr. Emmett is responsible for our legal, risk management and people departments. Mr. Emmett also served as Senior Vice President of Development from August 1996 to March 1997. From 1992 to 1996, Mr. Emmett held the position of Vice President and Senior Counsel. From 1983 to 1992, Mr. Emmett was an attorney with the law firm of Greenebaum Doll & McDonald PLLC, having become a partner of the firm in 1989. Mr. Emmett has been a franchisee since 1992.

Papa John's 2006 10-K

Interestingly on March 9th Mr. Emmett exercised an option to buy 7,500 shares of Papa Johns stock at $15.19 and then turned right around and sold them that day for $30.52.  Not bad little 1 day profit of $182,475.  I wonder if on March 9th, Mr. Emmet knew he would soon be moving over to Quizno's.

It looks to me like Brenneman is putting together a World Series Team, will he WIN?  Only time will tell!

Believe & Succeed,DaleFranSynergy, Inc.Synergizing Franchising!

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GB & the Current (Lack Of) Results

Sounds like Mr. Emmett fits in well with past hires at Quiznos.  Wonder if the Schadens had a say in this one. 

What will tell the tale is results for franchisees.  If it's the same old thing - high food and paper costs, coupon giveaways, multiple stores within a few miles of each other, and an adversarial relationship with the franchisees it won't matter who he brings on board.   

 when lucy met therocket she never knew the reason why

What are you talking about???

He has just announced that the changes he has made, thus far, will add up to about $13,000 in increased profit for an average franchisee this year.

He has completely banned the marketing department from ever issuing another Free Sub coupon, and there will be no coupons circulated during the summer months.

This month marks the roll out of a 27% SKU reduction. How can you say that won't affect food costs?

As for multiple stores within a few miles of each other, yes, that is a problem--no one will deny that. However, what do you expect him to do--close down store that are too close? He has said, several times, development has been slowed way down, and they will be putting extra resources towards franchisee selection.

Again--people seem to expect an overnight miracle--which is something that he has never promised, because it is impossible. Many years of mistakes will take more than three months to fix.

The Tale of the Q-Tape

I'd suggest that the tale of the Q-tape tells a very different story than the $13,000 reduction in store operating costs that GB is bragging about.  S (&) M my friends.

I'd also suggest that, much like the Q-pons of destruction, GB says all the right things but won't deliver any Q-aid for the koolaid that so many drank. 

My Q-tip of the day to those looking at Quiznos is to ignore the franchising "experts" (no offense to my friends who post) and ask the average Q franchisee how happy he/she is.  Me thinks that the dozens already suing for Quiz-dough is just the tip of the iceberg.

Hmmm, Mr. Emmett's favorite movie may just be "Trading Places".  If you subscribe to Muzak your favorite movie is probably Ground Hog Day.

when lucy met therocket she never knew the reason why

Q: Informative Inside Insight!

Guest, you seem to have some inside insight.  Thanks for a very informative post!  Please keep us posted.  I for one believe the Quiznos situation can be turned around.  It seems as though Brenneman is putting the people in place to help do that.

You're absolutely right that the mess wasn't created overnight and it will not be fixed overnight.  A marriage counselor talking to a couple about saving their marriage once said, "As long as the Sex is still good, counseling can fix the marriage".  I see the Quiznos situation in very much the same way.  A great sandwhich, good locations, good market penetration, --- so yes Good Leadership can fix the problem.

Keep the Faith, Keep us posted, & Have a Blessed Easter!

Believe & Succeed,DaleFranSynergy, Inc.Synergizing Franchising!

SKU Reduction

Please explain how SKU reduction decreases food costs. Food costs is based off of product used. It doesn't have anything to do with product inventory.

In the Spirit of Easter and New Hope for Quiznos

I join FranSynergy, Inc., Dale, in the encouragement of Quiznos management to fix their problems and hope that they will be successful because they are responsible for the problems that their franchisees face, and they have an obligation to fix them amd to compensate their failed franchisees for the losses that they have suffered through no fault of their own.
Quiznos is spreading out into the Global Economy and appears to have no financial problems other than lawsuits from franchisees. The poster of "What are you talking about?" indicates that there is a big problem of too many units too close together, etc...and we see that this problem may result in more failed stores, and again, it will be the franchisees who will suffer the loss of their investments and not Quiznos corporate.
Quiznos, in their greed and desire to grow their profits on the gross sales of their franchisees sold too many franchises in geographical areas that didn't have the customer base to support the number of Quianos franchised businesses that were sold and established in these areas. But, it is the franchisees who will eat these losses and not Quiznos corporate.
Since there is no collective bargaining before the franchise agreement is signed and no collective bargaining during the relationship, the injured franchisees have no recourse except the courts to attempt to recover compensation for the losses that were caused by the greed of Quiznos corporate management.
While I sincerely hope that Quiznos can solve their problems and save the investments of their franchisees who have survived, I don't think Baber and other injured and destroyed franchisees should be swept under the rug to be forgoten.
I hope that those that knew and remember Baber will keep the faith and continue to reach out for justice in his memory. I hope that other Quiznos franchisees will stand together in solidarity to support their fellow franchisees and to demand fair and just treatment from Quiznos corporate management.

SKU Reduction Saves $

SKU reduction can reduce food cost by limiting menu proliferation and increasing velocity of a the core menu offerings. The savings are in reduced waste and also labor and improved sourcing of ingredients (i.e., lower wholesale prices).

The true issue is that far

The true issue is that far too many existing owners refuse to accept the positive changes. The reason for non acceptance is debatebale; non the less, the new leadership has reduced costs in food, paper, chemicals, is working in concert WITH owners and is heading in the right direction. Menu reduction, operational simplification, reduction in sku's, negetioating with all suppliers, bringing top notch executives are all positive.

Those so anti-Quiznos are now damaging the brand, not corporate!

Not True! Greed damaged the Brand is the issue!

Of course, all Quiznos owners want their units to be successful and there is the inherent conflict of interest for the owners who sympathize with those who have failed and those who will fail but are silenced in their own self-interests ---they don't want to damage the brand by supporting the protest.
In reality, the protests of those who have been injured aren't heard by those who eat the sandwiches and who frequent Quiznos restaurants throught the United States.
Of course, you should support the efforts of Quiznos Corporate to make your restaurants profitable and cooperate in any way possible.
But, you shouldn't allow Quiznos Corporate to injure those Quiznos restaurants who are not profitable and who have failed through greed of Corporate Quiznos and support this greed through your lack of support for those franchisees who have failed and want some recourse for their failure that was not their fault.
Corporate counts on this "conflict of interest" in the network to continue to protect their bottom line ---if not the bottom line of their francfhisees.
I sincerely hope that Quiznos can turn things around for the sake of all the good men and women who have invested their faith and their labor and their money to rent this Brand name. But, you shouldn't believe that the protest of those who have been injured by Quiznos should be silenced because of the harm it might do to your asset. This protest will not harm your asset. There is hardly any line between "notable" and "notorious" these days and Quiznos Corporate will gain from any publicity that protest generates in that name recognation is the name of the game in franchising!

Loose Lips Sink Ships

A few quick thoughts come to mind:"Loose Lips Sink Ships""Go to the horses mouth""Don't bite the hand that feeds you""Don't cut your nose off to spite your face"Guest at a very basic level you are correct that the average consumer is much more concerned with the rumbling in their tummy than the rumblings and grumblings between franchisee and franchisor.

However all of the grumblings eventually take their toll, and as morale goes down so does everything else.  As the negative internal public rumblings continue, down goes the overall confidence in the confidence in the franchise concept itself....which will eventually take their toll on the overall investment.  As this happens so does the service levels etc...

As a child my grandfather told me about the most beautiful town he'd ever visited.  Every house was in perfect condition.  Every yard perfectly landscaped with the most beautiful flowers.  He told how the residents of the town were the friendliest people he'd ever meet.

He had an opportunity to visit the town again after several years, and as he pulled into the town the town the streets lights were out.  The roads were riddled with potholes.  The houses had there shutters falling off, windows broken and peeling paint.  Where beautiful flowers had once grown, there were nothing but weeds.  As my grandfather pulled into what had been one of his favorite restaurants in the town, he was greated by only a grumpy old man hanging a sign which read "Closed Forever"!  My grandfather approached the man and asked what was going on ---- he asked what had happened to the once beautiful town.  The old man explained how it was RUMORED that a damn was to be built up river and the town would be submerged.   That IF this were to happen all of the residents and the town itself would need to be relocated on higher grown.

THE MORAL OF THE STORY: "There is no work today where there is no hope for tomorrow."

So guest, if you do not believe that all of the moaning and growning will not harm the network and reduce the overall value made by a Zee, I believe you are mistaken.  The equitable value goes up as Zee and investor confidence goes up.

Believe & Succeed,DaleFranSynergy, Inc.Synergizing Franchising!

If rhe Network Floats on Goats Quiznos-UPS

It appears, Dale, that you believe that greedy and predatory franchisors should be permitted to piggy-back and churn their way to visibility and greater profits for the corporate brand and those who are injured and/or destroyed because of lack of viability of the business plan, or franchisor competition, or franchisor predatory policies etc.. should remain silent and be silenced by their fellow Zees for the good of the network.
Is this your message? Do you recommend that those who are destroyed financially and emotionally because of the bad practices of the franchisors and also those who are now in danger and may be sacrificed in the future should remain silent out of altruism.
It is this inherent conflict of interest for ZEES that makes it so difficult to present the appearance of a united frant when addressing ZEE complaints to Corporate Brand ZORS or to the courts. The primary reason that break-even ZEES or those who are approaching break-even want to enter into negotiation instead of litigation is this desire not to hurt the Brand Name and in any way undermine their own assets. Think about the Brown Board and the BSA.
Of course, all Zees who have invested their own sweat and their own money want to try to save their business in which they have 100% of the investment and in which they take 100% of the loss when it fails.
It is ironic, of course, that the franchisee who signs the contract of adhesion in good faith that he will succeed and wouldn't, of course, even think in terms of failure doesn't realize that the franchisor is premeditating the ZEES possible failure and how the franchisor will gain in the event of the failure of the ZEE right from the beginning! These predator Franchisors even premeditate the silencing of activists within their networks and are not above threatening to terminate these activists and take their businesses through the use of vague terms of the contract that their legal dep0artments interpret.
The franchisor premeditates the silencing of failed franchisees in the terms of the franchise agreement and knows that their fellow ZEES will not mourn them if they are allowed to pick the bones of the dead franchisees in both the franchisor's and the new franchisee's interests.
This, of course, together with the Zee conflict of interest, i.e. the harming of one's own asset, is the reason predatory franchisors can continue the systemic abuses of their franchisees to grow their own profits. Franchising servives because "collective bargaining" has been eliminated and ZEES are silenced.
These predators know that public policy has been developed to protect the balance of power in their favor and their strong and wealthy Lobby will protect the status quo.
If our forefathers had lived by your advice and your homilies, we would still be British citizens, Dale. "Loose Lips Sink Ships" but so does "Corporate Greed"!

Float on a Goat or Fly on a Lie ? UPS / Quiznos

The Franchisor holds the winning hand and the Franchisee is silenced and always has to throw his hand in because the deck is stacked against the franchisees as a matter of public policy. Those that insist that franchisees are told that it is a "gamble" aren't in favor of revealing the facts of what a real gamble it will be when you purchase a franchise, and how your franchisor will always profit from your purchase no matter what the outcome to you.
Of course, your franchisor wants you to be profitable but he really hasn't the financial incentive to share any of his profits with you when he knows that your assets will work for him one way or the other, both in success and in failure.

Quiznos & UPS (Fixable & FUBAR)

The Franchisor / Franchisee relationship is interdependent they each rely on the other.  As the Franchisor builds a large enough network of successful and profitable franchisees the franchisor becomes less dependent on a single franchisee.

Most people in life recognize that playing slot machines or the lottery is a gamble.  And yes, typically by legislation they are required to spend x percent of revenues on public service campaigns like 'Play Responsibly'.  However, there are no big - flashing- neon signs on the front of each machine that states: "Hey - STUPID -- ODDS ARE YOUR MONEY WILL BE GONE IN JUST A SECOND!  All business carries with it certain risk, but when you go down to the courthouse to get a business license, they don't say 'HEY - ODDS ARE YOU'RE GOING TO FAIL....GO GET A JOB!!!

Your statement that the Franchisor ALWAYS makes a profit from your purchase .... is simply FALSE!

Franchisees also benefit from the investment made by the franchisor.  A Franchisor does not benefit from failures.  The harm to franchisee and franchisor are different, and impact each differently...but never the less both are harmed when a franchisee fails.

Since your Title includes both names of UPS and Quiznos let me say again: As I see it UPS and Quiznos are VERY DIFFERENT situations.  I do feel for the UPS GROUP because of the way the whole UPS/MBE situation came to be.  The concept is not sound!  UPS does not need The UPS Store to survive for UPS to survive.  Quiznos needs the Quiznos stores to survive in order for them to survive.  The Quiznos System can be fixed...it can Thrive - Grow & Prosper.  As for UPS, I do not see how they fix the model.  People are going to continue to eat sub sandwiches but the UPS model, well...let's just say that is a very different situation! 

Believe & Succeed,DaleFranSynergy, Inc.Synergizing Franchising!