DENVER Quiznos said it has cut new deals on more than 40 leases for its franchisees, reducing their payments by an average of 15 to 20 percent, since creating special lease renegotiating teams last month.
Rick Schaden, Quiznos' chief executive, said the economic downturn has created opportunities for franchisees to seek better terms on their rent. The company created three teams, which are made up of a real estate negotiating firm, a law firm and corporate employees. The teams work around the country helping franchisees renegotiate leases that have expired or have high rent given current property values.
There is no cost to the franchisees, Quiznos said. To get assistance from the lease renegotiation teams, franchisees can call Quiznos or e-mail their requests. Franchisees do have to complete some prep work, such as compiling profit-and-loss statements and their business plans, before the teams start negotiating on their behalf, said John Teza, executive vice president of development for the sandwich chain.
Schaden, who was reinstated as chief executive of the more than 5,000-unit sandwich chain in February after the resignation of Dave Deno, said his primary goal is for franchisees to be able to say “in one year from now that they are better off than they are today.”
Denver-based Quiznos joins other operators that have been taken advantage of lower real estate prices to reduce their rent on store units, or gain some concession such as deferred payments, abetment and rent forgiveness, such as the 80-unit zpizza based in Newport Beach, Calif. Granite City Food & Brewery based out of Minneapolis said it recently negotiated rent reductions totaling $4 million for its 26 restaurants.
Contact Dina Berta at [email protected].