Judge Issues Order in Quiznos' Preliminary Injunction

EXCLUSIVE: Quiznos Temporarily Banned from Altering Franchise Operations of TSFA Board Members

Denver, CO - The Colorado Blizzard of 2006 may have brought activity to a standstill in the state, but it did not stop U.S. District Court Judge John L. Kane from proceeding with his hearing on the matter of Toasted Sub Franchisee Association’s motion for a preliminary injunction against Quiznos.  After reviewing the latest motions, he issued his order (adjacent pdf file) on December 22, granting a temporary restraining order, which refrains the franchisor from undertaking any action (or failing to take action) that would alter the current status quo of the parties based on the facts related to the case.

The order, according to court documents obtained on the Internet (available below to Blue MauMau members, pdf), states that plaintiffs may continue operating their businesses, and they are to continue paying royalties to Quiznos.  This court order will remain in effect until further order of Court.

The sole issue presented by plaintiff franchisees is whether Quiznos exceeded its authority by terminating their respective franchise agreements, based on activities as directors of a franchisee association, the TSFA.

The latest outbreak of litigation was ignited when TSFA board members posted a suicide note from a fellow-franchisee, Bob Baber, on its website, in an expression of honoring him.  TSFA had also asked for contributions for Baber’s family. Baber, in his letter, blamed Quiznos for his desperate act and pleaded for major media to run his story, in hopes that the government would investigate the franchisor’s business practices.

Approximately one week after the franchisee association’s website posting, Quiznos issued termination notices to franchisee board members, due to these latest activities of the TSFA.  Quiznos had also cut off supplies to some restaurants of plaintiffs at the beginning of their legal actions.

Another stipulation of Judge Kane’s order is that, “neither side shall present any further press releases with respect to the matter of Bob Baber. . .,” and that TSFA website regarding donations for Mr. Barber shall be taken down. 

The Preliminary Injunction Hearing has been set for February 12, 13 and 14, 2007.