December 16, 2005
. . . When You Baby Talk
Quiznos, a purveyor of toasted submarine sandwiches, is apparently on the auction block. The Denver-based sandwich chain is said to have hired Goldman Sachs Group Inc. to find buyers and could sell for as much as $2 billion. Private equity firms are expected to be the most active bidders because, according to this New York Times article , franchising companies typically have high overhead costs that can be cut, and they have a steady cash flow. Quiznos is the fastest-growing sandwich chain in the country and is second only to Subway in number of sandwich restaurants.
Quiznos has had its share of legal battles. Over the last several years the former wives of Dick and Rick Schaden, the father and son owners of the company, have sued them over valuation issues. Quiznos has also been hit with a number of franchisee lawsuits, alleging encroachment and that Quiznos overcharged for food and materials. Quiznos described the franchisee lawsuits as meritless.