Quiznos

Quiznos began in 1981 in Denver, Colorado, when chef Jimmy Lambatos partnered with Todd Disner to open the first location in Denver's Capitol Hill neighborhood. Lambatos had served as executive chef at Colorado Mine Co. Steakhouse and founded the Italian restaurant Footers in 1978. The concept featured toasted submarine sandwiches made with quality ingredients while cold, assembly line formats dominated the category. Franchising began in 1983, and the brand had 12 United States locations by 1987. Rick and Richard Schaden, who opened their own Quiznos franchise in 1987, acquired the company from Lambatos and Disner in 1991. Rick Schaden became president and later CEO. Quiznos went public in 1994 and returned to private ownership in 2001. It now operates under Quiz Holdings, LLC, a subsidiary of REGO Restaurant Group, which acquired Quiznos in 2018 through High Bluff Capital Partners, a private equity group. Tim Casey is CEO of Quiznos and REGO Restaurant Group, while Mark Lohmann is President of Quiznos and has described the current period as a “rebirth of a great brand.” Wikipedia reports approximately 331 global locations, while a 2025 source reports 157 active domestic units. Headquartered in Denver, Colorado, Quiznos has locations in Canada, Europe, South America, the Middle East, and Asia. The brand retains recognition built over more than four decades, but its current unit count and business structure require careful review by prospective franchise buyers.

Quiznos operates in the Limited Service Restaurant market, valued at approximately 1.2 trillion U.S. dollars in 2024 and projected to reach 1.4 trillion dollars by 2030 at a 3.2 percent compound annual growth rate. Another projection places sector growth at a 5.71 percent CAGR from 2025 through 2035, reaching 1,435.98 billion dollars by 2034. The Quick Service Restaurant segment was valued at 1,055.48 billion dollars in 2025 and is projected to reach 2,311.54 billion dollars by 2034, a 9.14 percent CAGR. North America held 37.03 percent of the QSR market in 2025, with the United States representing the largest country market. Limited service delivery sales increased more than 20 percent in one recent year, while demand is also growing for customizable and health focused menu choices. Quiznos is targeting drive thru and curbside demand through modular designs and convenience store partnerships. Sub sandwiches can offer perceived value compared with sit down casual dining, which may help the segment retain customers during periods of household spending pressure.

The initial Quiznos franchise fee is 30,000 dollars and includes training support for up to two people, excluding travel expenses. Full format restaurant investment ranges from approximately 458,100 dollars to 1,432,000 dollars. Costs vary with real estate acquisition or leasing, drive thru construction, local labor and material prices, and the choice of a freestanding site, strip center, convenience store, or fuel station. Smaller formats require 220,600 dollars to 611,000 dollars, while database investment figures range from 37,000 dollars to 268,600 dollars for certain nontraditional and modular formats. Architectural fees run from 15,000 to 60,000 dollars. Restaurant equipment, fixtures, and signage cost 75,000 to 175,000 dollars, and full building construction ranges from 275,000 to 880,000 dollars. The company’s 2018 “New Deal” reportedly reduced the prior structure of a 7 percent royalty plus 4 percent marketing fee. Applicants need net worth of 250,000 to 350,000 dollars and at least 150,000 dollars in liquid capital. REGO Restaurant Group, acquired through High Bluff Capital Partners in 2018, provides the parent company structure behind the brand.

Quiznos restaurants focus on ingredient assembly, sandwich toasting, and counter service. The compact Qube drive thru design measures 650 square feet and is intended to reduce labor needs relative to sales volume. Developed with BCubed Manufacturing, the Qube can be built in as little as three months and is designed for drive thru service on small sites. Franchise support includes training at flagship stores, site evaluation, grand opening marketing, national and local marketing, loyalty program integration, digital ordering tools, and field coaching. The standard Franchise Agreement does not grant an exclusive or protected territory. Quiznos may place competing locations nearby and sell through electronic commerce or other channels without compensating the franchisee. Two 2022 development agreements included regional protections: a 30 unit agreement signed in November with Parish Patel for Arizona and a 10 unit agreement signed in December with Sam Patel for Northern Georgia.

Applying the 7 percent combined royalty and advertising fees to 417,139 dollars produces approximately 29,200 dollars in annual payments before other expenses. A 2019 FDD listed working capital of 35,000 to 40,000 dollars. Multi unit ownership may improve per unit economics. Sam Patel cited Quiznos’ “favorable economic model with strong potential upside” when discussing his multi unit commitment. Buyers should request the current FDD because the REGO restructuring and reduced fee structure may lead to different financial disclosures in later filings.

Quiznos reached nearly 4,700 locations in 2006 and 2007 and was the second largest submarine sandwich chain in North America as recently as 2013. The system declined to roughly 400 United States locations by 2017, approximately 278 franchised United States locations in 44 states plus D.C. in 2019 FDD data, and approximately 331 locations worldwide according to the most recent Wikipedia figure. A 2025 source reports 157 active units. Contributing factors included a captive distribution subsidiary formed in 2000, franchisee complaints about above market food and supply costs, unrealistic staffing requirements, high royalty structures before the New Deal, and rapid expansion involving undercapitalized or inexperienced franchisees. Since 2018, REGO Restaurant Group has pursued measured regrowth. In July 2024, Quiznos announced up to six additional Pump and Pantry convenience store locations in Nebraska between 2024 and 2026. The partnership began in 2022 and had produced four locations. The company also reported six openings over 12 months and a goal of at least nine locations by December 31, 2025. The Qube offers lower startup costs, a faster build, and access to drive thru and convenience formats. Tim Casey and Mark Lohmann have stated a goal of more than 1,000 international stores in over 40 countries. Canada had just over 100 locations as of December 2022, and the broader international network includes Europe, South America, the Middle East, and Asia.

Quiznos seeks candidates with management discipline, leadership ability, entrepreneurial focus, and attention to product quality rather than requiring previous restaurant experience. The 2022 development agreements with Parish Patel for 30 Arizona units and Sam Patel for 10 Northern Georgia units show an emphasis on operators able to develop multiple locations. The 2019 FDD identified the South as the largest regional concentration, with 101 locations. Recent activity in Georgia, Arizona, and Nebraska points to available development areas in other parts of the United States. Some multi unit agreements include exclusivity provisions, so buyers seeking protected development rights should discuss territory early with the franchise development team. The 650 square foot Qube and its three month build timeline may suit fuel stations, convenience store corridors, and highway adjacent sites where lower real estate costs can affect investment returns.

Quiznos combines more than 40 years of consumer awareness, toasted sandwich differentiation, a private equity backed parent company, reduced ongoing fees, and a modular format aimed at convenience and drive thru locations. The global Limited Service Restaurant market is projected to rise from 1.2 trillion dollars in 2024 to 1.4 trillion dollars by 2030. Quiznos has an independently calculated Loan Activity Score of 41, rated Fair, reflecting a brand in rebuilding. PeerSense provides due diligence information that includes SBA lending history, the Loan Activity Score, location maps with Google ratings, FDD financial data, and comparison tools covering investment, fees, unit trends, and franchisee sentiment.