Quiznos’ Franchisees File Class Action in Illinois

Lawsuits to be Filed in Every State Where Rights Need Defending

CHICAGO (Blue MauMau) - Another class action lawsuit, the third this year, was filed today on behalf of Quiznos’ franchisees against the sub sandwich giant, which now touts over 5,000 restaurants.  The lawsuit was filed in the U.S. District Court for the Northern District of Illinois, alleging Quiznos’ systematically defrauded its franchisees in a scheme designed to build the brand at the expense of its operators.  The other two class actions were filed in Wisconsin and Michigan.  

The Toasted Subs Franchisee Association, Inc. stated that the company is being charged with forcing franchisees to buy food, supplies and services from Quiznos’ or its affiliates at inflated prices while concurrently setting artificially low retail prices for its products, in many instances making the stores unprofitable for franchisees.  In the lawsuit it also claims that the franchisor, in an effort to induce potential franchisees to buy into the system, omits or otherwise misrepresents key facts about Quiznos’ business operations. Justin M. Klein, Marks & Klein, attorney for franchisee in all three class actions said “There are Quiznos’ franchisees around the country that have been and continue to be injured and we will continue to fight to protect their interests.”

Chris Bray, president of the TSFA franchisee association, concurs. He said, “We are going to file in every state where franchisees want to defend their rights.” So far the only way they have been able to do that, according to Bray, is through a court of law.  He said, “Until Quiznos’ decides to work with the TSFA, the only independent franchisee organization in this chain, then they can expect this litigation to continue.” 

In seeking damages for lost investments as well as injunctive relief, the suit also alleges statutory and common law fraud, violations of federal and state antitrust laws, violations of Racketeer Influenced and Corrupt Organizations (RICCO) Act, breach of contract and violations of Illinois franchise and consumer protection laws.

Bray feels they have been more than willing to work with Quiznos’, but said, “When reasonable people try to work with the unreasonable, there’s no middle ground. They either need to engage us in serious dialogue or this is going to be the outcome.”

According to a spokesperson for Quiznos, the company had just received the notice of the Illinois class action lawsuit and was not ready to give a statement at this time.