Quiznos Operators File Class Action in Wisconsin State Court

New Filing Comes on Heels of Federal Court Ruling 

MILWAUKEE (Blue MauMau) - A group of Quiznos Sub franchisees filed a class action complaint today against the company in Milwaukee County Circuit Court (State of Wisconsin). The lawsuit, Westerfield, et al. v. The Quiznos Franchise Company LLC, et al. alleges multiple violations of Wisconsin's consumer protection laws. Among other things, it charges that Quiznos exploited its Wisconsin franchisees through deceptive trade practices, breached promises about the costs of operating a Quiznos restaurant and that the company failed to act in good faith by executing on a scheme designed to build the brand at the expense of its franchise owners.

Attorney Justin M. Klein, Marks & Klein, who represents the franchisee group, said, "This lawsuit represents the commitment of the Quiznos franchisees to seeking the justice they deserve, and their continued efforts to protect others like them and seek redress for the past.  I and the other lawyers on my team will continue to fight for all Quiznos franchisees no matter where the fight has to be fought."

Judge's Decision Dismissed Federal; Pointed Franchisees to State Court 

This latest filing stems from a November 5, 2007 decision by Judge William C. Griesbach in a lawsuit filed by the same franchisees in a Wisconsin federal court.  He had stated in his memorandum and order, that the jurisdiction of the lawsuit was not entirely appropriate, that state claims should be tried at the state level, not in federal court. Allegations of the franchisor having exorbitant mark-ups and kick-backs were ruled as vague. And, on one critical issue, whether alleged price gouging exists or not, the judge specifically cited that the Uniform Franchise Offering Circular (UFOC) in which all franchise owners must sign was quite clear. The franchisor could charge mark-ups and kick-backs without restrictions.

Judge Griesbach also commented, "With plaintiffs’ federal claims gone, I then dismiss the remaining state law claims without prejudice to allow plaintiffs to pursue them in state court under whose law they arise.” The Toasted Sub Franchisee Association (TSFA), an independent organization representing hundreds of operators across the country, issued a statement saying the judge's ruling had encouraged the franchisees to pursue their state law claims in Wisconsin state courts.

The Wisconsin complaint is one of many class action lawsuits pending around the United States against Quiznos Sub that challenges the company's business practices as deceptive and unfair.

Complaint Sends Message to Quiznos Executives: Fight Is Far from Over

John Schodron, a Wisconsin franchisee and plaintiff in the lawsuit, said, "Following the federal court ruling, Quiznos publicly announced that they had won this lawsuit and that it was over, but that cannot be further from the truth. We will continue to fight Quiznos' deceptive practices and policies that harm the franchisees. . . until we get the justice and fair treatment we deserve."

According to the Toasted Subs Franchisee Association, Inc. ("TSFA"), an independent Quiznos franchisee organization representing hundreds of franchisees from across the country, the filing of the Milwaukee County action is a message to Quiznos' executives that the fight is far from over. "Quiznos has given franchisees no alternative to litigation. They have refused our efforts over the years to work with them and have ignored our concerns" said TSFA president Danny Kessels. "The goal of these lawsuits has always been to right the wrongs of the past and, more importantly, to allow the franchisees that are still alive in this system to get a fair chance at success by selling the best product on the market."

Although Quiznos did not return phone calls or emails prior to publishing, Richard Emmett, Executive Vice President and Chief Legal Officer, made comment after Judge Griesbach's decision (see related article below). He told Blue MauMau that hopefully this distraction was behind them, that they didn't want to spend their time in court.  He said they wanted to spend their time improving the system and on franchisee profitability.

Related Article:

Judge Dismisses Federal Lawsuit against Quiznos