SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
________________________________
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
January 10, 1997
________________________________
THE QUIZNO'S CORPORATION
(Exact name of registrant as specified in its charter)
Colorado 000-23174 84-1169286
(State of Incorporation)(Commission File No.) (I.R.S. Employer
Identification No.)
7555 East Hampden Ave.
Suite 601
Denver, Colorado 80231
(Address of principal executive offices)
(303) 368-9424
(Registrant's telephone number, including area code)
ITEM 5. Other event
Press release regarding financing agreement.
Reg. S-K
Exhibit No. Description Item No.
*99.1 Press release 99
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
THE QUIZNO'S CORPORATION
Date: January 20, 1997 By:/s/ Richard E. Schaden
Richard E. Schaden, President and Chief
Executive Officer
EXHIBIT INDEX
Exhibit
No. Description Page
*99.1 Press release
1
THE QUIZNO'S CORPORATION LETTERHEAD
FOR RELEASE AT 6 AM, MDT ON JANUARY 10, 1997
THE QUIZNO'S CORPORATION ANNOUNCES
FINANCING AGREEMENT DESIGNED TO FUEL GROWTH
Denver, Colorado - The QUIZNO'S Corporation (Nasdaq: QUIZ),
franchisor of QUIZNO'S Classic Subsr restaurants, announced today it
has received a $2 million loan from Dallas-based Retail & Restaurant
Growth Capital, L.P. (RRGC).
Rick Schaden, QUIZNO'S president and CEO, said the majority of the
proceeds will be used to secure and develop new QUIZNO'S restaurants,
either through a turnkey program that would build and sell QUIZNO'S
Classic Subs restaurants to franchisees or through the purchase of
existing restaurants that could be converted to QUIZNO'S units. In
addition, a portion of the proceeds will retire certain debt and
provide working capital for the corporation.
"This financing provides a boost to our national expansion at a time
when we are approaching a critical mass in the growth of our chain,"
Schaden said. As of December 31, 1996, 156 Quizno's restaurants were
open in 25 states and Vancouver, British Columbia, and 61 markets
were under development in the U.S. and Canada.
"We were impressed with RRGC's knowledge and expertise in our
industry," Schaden said. "Its partners have been affiliated with
Grandy's restaurants, On The Border, Spaghetti Warehouse, Canyon Cafe
and other retailers, including Circuit City, Sunglass Hut
International and Restoration Hardware."
QUIZNO'S will further capitalize on the new relationship with RRGC,
naming one of its principals to serve on QUIZNO'S Board of Directors.
"QUIZNO'S is one of only two investment opportunities that RRGC
selected in 1996 out of 377 that we reviewed," J. Eric Lawrence, RGC
General Partners, said. "We are excited about Rick Schaden's skills
in growing the chain to date and his ability to build a top
management team in a highly competitive industry."
RRGC's General Partners Mark L. Masinter added: "We're excited about
the quality of QUIZNO'S product, which far surpasses its competitors,
and the quality of the QUIZNO'S team."
RRGC's four general partners offer collectively more than 50 years of
investment, management, consulting and operating experience in the
retail and restaurant industry. The firm lends growth capital to
emerging companies that have had limited access to traditional debt
and equity capital markets. The firm participates in the ownership
of its portfolio companies through warrants to purchase a moderate
equity interest. RRGC recently received its license from the Small
Business Administration's Small Business Investment Co. which
provides the firm with significant additional capital to invest in
emerging businesses.
Under the five-year financing agreement with QUIZNO'S, RRGC has
loaned the franchisor $2 million, a portion of which is convertible
into equity of the Company, currently 372,847 shares a conversion
price of $3.10 per share. If the loan is paid off before conversion,
RRGC will receive warrants to purchase these shares at $3.10 per
share. The loan is repayable interest only for the first 18 month,
with principal and interest due over the remaining 42 months.
The quick-service, Italian-style deli concept, which serves signature
over-baked QUIZNO'S Classic Subs, has been a popular Denver-based
chain for 16 years and has grown from 18 restaurants open in 1991
when Rick Schaden and his father purchased the company to 156 open at
the end of 1996.
This release contains forward-looking statements (as defined in the
Private Securities Litigation Reform Act of 1995) that are subject to
risks and uncertainties that could cause actual results to differ
materially from those set forth in the forward-looking statements.
Such risks and uncertainties include the effect of national and
regional economic and market conditions; costs of labor, marketing,
food and non-food items purchased by QUIZNO'S restaurants; weather
conditions and eating habits of the American public. Such risks were
detailed from time to time in the Company's reports filed with the
SEC, including the report on Form 10-KSB for the year ended December
31, 1995 and the subsequent Forms 10-QSB.
For more information, contact Debbie Leider or Sue Hoover,
The QUIZNO'S Corporation
Corporate Communications line, (303) 706-9338
