The new Quiznos Franchisee Association, or QZFA, was officially founded this week with the goal of giving operators of the sandwich chain a voice, as Quiznos looks to a pending change in ownership, restructured finances and a rebranding effort.

Quiznos officials confirmed Wednesday that the chain will likely see new ownership soon, but did not give details on its future. Through a spokesman, the chain said it has been seeking a debt-for-equity swap. Franchisees that spoke with Nation’s Restaurant News see that as the most likely scenario, rather than an acquisition.

The chain is currently owned by Rick and Richard Schaden and affiliates, who reportedly hold a 51-percent stake.

Denver-based Quiznos officials also would not comment further on ongoing restructuring efforts, as the chain addresses a reported debt burden of about $875 million.

The Denver-based chain earlier this year hired law firm Paul Weiss Rifkind Wharton & Garrison LLP and investment bank Moelis & Co. to look at restructuring the beleaguered sandwich chain’s finances and operations.

New franchisee group organizes

As the company goes through that process, QZFA aims to give franchise operators a seat at the table, asking them to join forces in re-energizing the brand, said Kevin Tackett, president of the association and one of the chain’s largest traditional franchise operators, with nine units.

“The only asset Quiznos owns is these franchisee agreements,” Tackett said. “We need to align ourselves in order to make a positive change in the business model and reestablish the value of the Quiznos brand.”

The QZFA officially launched on Tuesday, as did the group’s website. Members can also connect through the association’s Facebook page, LinkedIn and via Twitter: @QFranchisees.

In the company’s regularly scheduled conference calls to franchisees, Quiznos’ chief operating officer Michael Roper endorsed the association.

Roper also addressed franchisees’ fears of a possible bankruptcy by saying “it would make no sense to do it,” Tackett said.

Some reports earlier this year indicated that Rick Schaden and partners were considering a $50 million investment of new equity to help refinance debt to avoid default this year, but recent reports indicate that is no longer the plan.

Rebranding

Meanwhile, the company is working to re-invigorate the brand.

The association hopes to play a key role in a rebranding effort officials plan to launch early next year. The company has hired a market research firm, which officials declined to name, that has begun talking to franchisees about what they think will turn around declining sales.

The research will also consider consumer impressions of the brand, and how franchisor-franchisee relations can improve, Tackett said.

The information will also be crucial to any new owners that may be in the picture by next year, he noted.

“The new owners will need to know what the heck they need to do to fix it,” he said.