Detailed Estimates of Quiznos Franchise Costs Based on Item 7 (Estimated Initial Investment) of Quiznos’ 2015 Franchise Disclosure Document
For a New Traditional Restaurant
1. Initial Franchise Fee: $10,000
- If you sign a Development Rights Rider, the Initial Franchise Fee for each Restaurant you are required to develop (after the first Restaurant) will be $5,000.
2. Architectural Fees: $7,950 to $13,000
- These amounts do not include plan review fees assessed by the municipality in which the Restaurant will be located.
3. Lease Review Fee: $0 to $1,000
- For a Traditional Restaurant, Quiznos has periodically waived the Lease Review Fee under certain circumstances, for instance, if you currently own and operate a Restaurant. Quiznos may do so again in the future under circumstances it deems appropriate, but it is not obligated in any way to waive the Lease Review Fee.
4. Leasehold Improvements: $75,000 to $92,000
- These amounts might be reduced if the landlord contributes any tenant finish allowance.
- The amounts do not include any applicable sales taxes (which are your responsibility).
- Actual costs may exceed these ranges in certain metropolitan markets.
5. Equipment, Construction Materials, and Signs: $65,538 to $78,300
- Included in the equipment and construction materials are HVAC, electrical panel, one sign, and millwork.
- Figures represent approximate costs based on the extent of equipment and renovations needed.
- You may purchase certain pre-owned equipment from Quiznos or a third party such as a bank, landlord, or another franchisee so long as such equipment meets Quiznos’ standards and specifications.
- If you are developing a new Traditional Restaurant, the figures in the table are for the purchase of pre-owned Restaurant equipment since Quiznos anticipates that you will purchase pre-owned equipment. If, however, you choose to purchase new equipment for your Restaurant, Quiznos estimates the high range figure to be $80,000.
6. Delivery Equipment and Promotional Materials: $0 to $1,199
- If you operate a Traditional Restaurant, Quiznos may require you to offer delivery services from your Restaurant. If it requires you to offer delivery services, you will be required to subscribe to a delivery website that allows customers to place online orders for delivery from your Restaurant.
7. Teamwear in a Box: $360 to $585
8. Cash Register, Credit Card, Music, and Computer Systems: $717 to $2,117
- If you are developing a Traditional Restaurant, you must purchase or lease from a designated supplier Quiznos’ approved point-of-sale system, computer system, music system, and credit/debit and gift card processing system.
9. Phones, Other Miscellaneous Items: $1,000
10. Security Deposits, Utility Deposits, and Business Licenses: $3,600 to $8,000
11. Training Expenses: $2,500 to $4,500
- You are responsible for arranging and paying for transportation and paying the expenses for meals and lodging for any persons attending the training program. Your expenses will be higher if more than one individual attends the training program.
12. Opening Advertising Campaign: $3,000 to $5,500
- This amount covers the costs of Grand Opening in a Box.
13. Real Estate: Amount Not Specified
- A Traditional Restaurant typically is located in an outdoor or enclosed mall or a strip shopping center and generally is from 1,200 to 1,600 square feet.
14. Opening Inventory: $8,000 to $10,000
15. Additional Funds – 3 Months: $25,000
- This estimate includes payroll costs (but not any draw or salary for you), utilities, food orders, paper supplies, and miscellaneous supplies. However, this is only an estimate and it is possible that you will need additional working capital during the first 3 months you operate your Restaurant and for a longer time period after that.
16. Total Estimated Initial Investment (excluding real estate costs): $202,665 to $252,201
- This amount does not include real estate costs.
- Quiznos has relied on its affiliates’ and principals’ many collective years of experience in this business to compile these estimates.
For a Non-Traditional Restaurant
- The total estimated initial investment necessary to begin operation of a Non-Traditional Restaurant ranges from $97,510 to $237,002.
For a Convenience Restaurant
- The total estimated initial investment necessary to begin operation of a Convenience Restaurant ranges from $96,332 to $224,502.
For a Reopen Restaurant
- The total estimated initial investment necessary to begin operation of a Reopen Restaurant ranges from $58,247 to $140,522.