New corporate parent takes over Schlotzsky's

When a parent company re-organizes after Chapter 11 bankruptcy, franchise owners are often left wondering if the brand will survive, and what a new owner will mean to a locally operated business.

Sally Root, co-owner of the Schlotzsky's Deli franchise at 1410 E. William St., is in that predicament.

She and her husband, Stephen, are waiting to see how Bobby Cox Companies Inc.'s purchase of Schlotzsky's Inc. will play out.

"Our red wagon is hitched to theirs, so it kind of put us into a place where we're trailing after them to see where the brand is going to go next," Root said.

Bobby Cox Companies, based in Fort Worth, Texas, announced the purchase on Jan. 10 after Schlotzsky's Inc. filed for Chapter 11 protection.

Root said she has heard so far that the new company may bring down costs and give the franchises more local control over the company's marketing funds.

"It has a great local following, the product line and concept is great, but unless you have a parent corporation supporting you through the marketing you can only do so much," she said.

Root said customers have heard about Schlotzsky's Inc. bankruptcy and wondered what that means for the local sandwich shop. The Roots have owned the deli since it opened in January 1999. It was on the market for several months, but now the Roots plan to continue operating the business.

Ann Braidish, spokeswoman for Schlotzsky's Inc., said the brand name will stay the same and the franchises will not be required to sign a new agreement. New franchises will have a new agreement, but she doesn't know yet if there will be any substantial changes.

Braidish said the new owner is looking at improving the purchasing and distribution process to save costs. The Schlotzsky's franchise system will be operated as a privately owned company, and will retain its headquarters in Austin and current employees.

n Contact reporter Becky Bosshart at bbosshart@nevadaappeal.com or 881-1212.