Quizno’s was touted as the fastest growing sub-sandwich franchise chain in the U.S. in the July 2002 issue of Restaurant News magazine.
With sales of more than $200 million per year and a new Quizno’s opening every 16 hours there are 2 500 restaurants worldwide in 15 countries — including the U.S. Puerto Rico and Guam.
However the Guam Quizno’s story is not so rosy. The Guam franchise has amassed debts. A money judgment for $26 800 for rent due for the Hagåtña restaurant through Jan. 31 was entered into the Superior Court record and was signed by Judge John L. Manibusan on Feb. 5.Quizno’s locations no longer accept credit card payments and vendors are paid in cash.
The Guam franchise holder Kamilyn R. “Kimi” Reed president and managing agent of Pink Sand Corp. is selling her interest in the two Quizno’s locations. One is located on property owned by Peter P. “Sonny” Ada at the Ada Arcade in Hagåtña. The other is located in the James Woo building in Yigo.
Corporate records at the Guam Department of Revenue and Taxation showed that Reed — with Richard F. Schaden founder president and chief operating officer of Quizno’s — formed a corporation in Saipan and was granted a foreign corporation business license on Guam on April 26 2000. Pink Sands Corp. listed Reed as president and treasurer and Schaden as vice president and secretary. Since then a local license was issued to Quizno’s Guam Corp. listing the two as equal owners. This was dated May 21 2000 the day the Tumon location opened. The records show that Reed and Schaden each invested $42 500 for a total share purchase of 85 000 at $1 each.
The Journal has learned there are a number of interested buyers that are vying to take over the operating agreement from Reed.
The Journal contacted Reed for comment. She said due to ongoing purchase negotiations and company regulations she could not comment regarding the fact that she is having to sell her interest in the franchise to settle incurred debts.
An off-island buyer who wished to remain anonymous at this time said “Quizno’s is a great franchise with a great product that people enjoy and with a better financial backbone the Quizno’s franchise will continue. Plans are to grow it beyond the two present locations in East Hagåtña and Yigo.”
While Reed declined an official comment she did convey she was appreciative that Ada allowed her time to find a qualified investor or group of investors so that the Quizno’s name did not become tarnished especially in a small community where people all seem to know one another.
According to Quizno’s corporate Web site prospective franchise hopefuls must have a net worth of $125 000 and liquidity of at least $70 000.
“Quizno’s looks for solid entrepreneurial individuals who are interested in owning and operating their own Quizno’s. Owners pay an initial franchise fee which has been established at $25 000 and lower fees for additional units.
In a Guam Business interview in the September 2000 issue Reed was asked how she linked up with Quizno’s following a career path on Guam that included server at Uncle Bob’s TJ’s and Casa and part-time positions at Guam Cable TV Lucky Limousine 94Jamz and Oka Towers. She also worked as a Bud Girl promoting Budweiser products for Ambros Inc.; a paralegal for local law firm Howard Trapp Inc. and other local attorneys; and model for Guess Chanel Moshino Splash and Korean and Japanese swimsuit companies. In the article Reed said “I knew that I always wanted to own a business on Guam but I just didn’t know how when or where to start.”
Reed was offered the opportunity to introduce Quizno’s to Guam through the father of the president and chief operating officer of Quizno’s in Colorado who hired Reed to do paralegal work in 1998 for Korean Air. MBJ