UNITED STATES
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):
September 29, 1998
THE QUIZNO'S CORPORATION
(Exact name of registrant as specified in its charter)
Colorado 000-23174 84-1169286
(State or other (Commission (IRS Employer
jurisdiction File Number) Identification No)
of incorporation)
1099 18th Street, Suite 2850, Denver, Colorado, 80202 (Address of
principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (303) 291-0999
Item 5. Other Events. Other event
Press release regarding Quizno's signs Master Franchise Agreement to Japan
Exhibit No. Description Reg. S-K Item No.
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*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: October 1, 1998 By:/s/ John L. Gallivan
John L. Gallivan, Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description Reg. S-K Item No.
- ----------- ----------- -----------------
*99.1 Press release 99
QUIZNO'S SIGNS MASTER FRANCHISE AGREEMENT FOR JAPAN
DENVER, Colo. September 29, 1998 - The Quizno's Corporation (Nasdaq: QUIZ) today
announced it has signed a master franchise agreement with KMN U.S.A., LLC to
develop QUIZNO'S(R) Classic Subs restaurants in Japan. KMN will do business as
Quizno's Japan Corporation based in Tokyo.
The $1.64 million deal gives Quizno's Japan the exclusive rights to develop as
many as 300 restaurants in Japan over the next 10 years. The Quizno's
Corporation retains control over the QUIZNO'S brand and will collect a
percentage of all territory and franchise fees sales, as well as a percentage of
royalties on retail sales. QUIZNO'S expects to recognize revenue, net of
expenses, over the next one to three years.
"This is a significant move for QUIZNO'S into the international arena," said
Rick Schaden, President and CEO. "We are happy to have very experienced and able
partners to make this venture".
Nick Nishigane, president of KMN, discovered QUIZNO'S in Costa Mesa, California,
last year and soon began frequenting the restaurant with his Japanese clients to
treat them to a "unique Western fast food".
"They all thought Quizno's was a great-tasting sub and one they couldn't get in
Japan", said Nishigane, who himself acquired a taste for Western food when he
was president of a Canon U.S.A., Inc. subsidiary and lived in the U.S. during
the 1970s and early 1980s. "Sandwiches in Japan traditionally are small finger
sandwiches," he said. "We're confident that the taste and abundance of the
QUIZNO'S Sub will be a winning combination among the Japanese. In fact, we
believe we might start a new trend in fast food with QUIZNO'S.
Mr. Kazuyoshi Abe, president of Quizno's Japan, became associated with Nishigane
as a top dealer of Canon copier products in Japan for more than 15 years. He
also has a food service business which caters to Canon employees. In addition,
Quizno's Japan has principals who have extensive experience in restaurant
construction and in restaurant operations, including McDonald's. A pilot
restaurant is scheduled to open in Tokyo in late 1998 or early 1999. Several
sites have been identified for development in the first half of 1999.
This marks the Denver-based restaurant chain's second international expansion. A
master franchise agreement for Canada was awarded in late 1996, and currently
there are 26 QUIZNO'S Classic Subs open in British Columbia and Toronto.
QUIZNO'S Canada has sold more than 70 new franchises to date in 1998.
"We are taking a top-quality sandwich into markets where people
like subs," said Schaden. "Internationally, the U.S. is the
largest market for sub sandwiches. Canada is the second largest,
and Japan is the third."
<PAGE>
The Italian-style deli which serves signature oven baked Classic subs has grown
from 18 restaurants in Denver in 1991 to the third largest U.S. sub chain with
more than 400 restaurants open in 35 states, Puerto Rico and Canada by summer of
1998.
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, the
eating habits of the American and Canadian public, cost of labor and employee
benefits, cost of marketing, intensity of competition for locations as well as
customers, perception of food safety, legal claims and the availability of
financing for the Company and its franchisees. Such risks are 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, 1997.
For more information contact:
Sue Hoover, EVP, Marketing
The Quizno's Corporation, (303) 291-0999, ext. 3242
