TSFA Files for Injunction to Quash Quiznos Termination Notices

Is the Cure Worse than the Pain?

In answer to Quiznos’ Notices of Termination (pdf), and its description of a cure, TSFA attorneys have now fired back. The TSFA filed papers yesterday in the District Court of Colorado seeking an injunction on behalf of all the TSFA board members that were terminated. The injunction (see brief - pdf) alleges breach of contract, violations of the First Amendment of the Constitution and violations of certain state’s statutes of TSFA board members. [Read more]

This is in reaction to a few days ago when Fredric “Ric” Cohen of DLA Piper, representing Quiznos, laid out the steps on December 13, 2006 to a Toasted Sub Franchisee Association (TSFA) board member as to how to cure the default based on Cohen’s December 8, Notice of Termination letters (pdf) to board members of the franchisee association. In his letter he states that the franchisee must cause the retraction of the material on the TSFA website relating to Mr. Baber, including “the letter allegedly drafted by Mr. Baber.” Second, she must cause there to be a posting on the TSFA website acknowledging that the posting of that material  was both morally reprehensible and in violation of his contractual commitments under his franchise agreement, and harmed the Quiznos brand and damaged the goodwill associated with Quiznos name.

Third, she must cause to be posted on TSFA’s website an apology to fellow franchisees and to Quiznos for the harm and damage done.

And fourth, she must execute a written reaffirmation and acknowledgment of his existing contractual obligations not to engage in conduct that harms Quiznos brand or impairs goodwill, including by means of TSFA website postings, press releases, or other communications intended to harm the Quiznos brand.

TSFA Board Members File Complaint

TSFA attorneys have now fired back. According to Justin Klein, New Jersey attorney for the TSFA, they filed the papers yesterday in the District Court of Colorado seeking an injunction on behalf of all the TSFA board member that were terminated.  The  alleges breach of contract, violations of the First Amendment of the Constitution and violations of certain state’s statutes of TSFA board members.

A Complaint and Jury Demand, a Motion for Preliminary Injunction and Request for Forthwith Hearing (pdf), and a Brief in Support of Motion for Preliminary Injunction and Request for Forthwith Hearing (pdf), were all filed December 15.

According to the Complaint (pdf), in April 2005, Bhupinder “Bob” Baber and his wife Ratti Baber filed a civil action against various Quiznos-related entities in California Superior Court (Los Angeles County). They owned two Quiznos franchises in California and filed suit to remedy what they felt were targeted frauds against them by Quiznos. Mr. Baber had formed the Quiznos Subs Franchise Association (QSFA), which consisted of a network of California franchisees.

Quiznos set out to target and attack Baber and QSFA due to their outspoken positions over the franchise relationship with Quiznos. The company then terminated the Baber’s franchises and sued them in an effort to impede their First Amendment rights guaranteed under the United States Constitution. Through a litany of lawsuits and proceedings, the courts concluded that the Babers’ actions could be arbitrated in Denver, Quiznos’ home district. But the Barbers had spent approximately $100,000 litigating and could no longer afford to litigate further.

On November 27, 2006, Mr. Baber visited a Quiznos restaurant in Whitter, Calif. He spent some time talking with the manager and drinking a soda. He then excused himself, stepped into the restroom as shot himself three times in the chest. Later that day, he died from the self-inflicted gun-shot wounds.

Baber left two suicide notes, one to his wife and children, not shared with others, and a second one directed to all Quiznos franchisees, the media and the public at large.  Copies of the second note were found on the Baber’s body at the scene of the incident, and on his computer at home. These facts were confirmed by Ratti Baber, his widow.

Baber’s death left his wife and children financially destitute, requiring them to borrow money to pay for his funeral.

Certain members of the board of TSFA, acting independently and without consultation of the board, assisted the Baber family, which included setting up a website as a tribute to Bob Baber.  It allowed people to access the Whittier Daily newspaper article, to review the suicide letter, and to make contributions to a memorial fund for his family.

The Complaint states that Quiznos’ Notices of Termination have little to do with the Quiznos brand, but rather they seek to destroy the TSFA and the rights of all franchisees to freely associate and speak out against illegal and fraudulent conduct. It states, “This pattern of using coercive tactics to frighten the mass of franchisees is an ongoing Quiznos ploy.”

In a Rocky Mountain News article this morning, Franchisees terminated by Quiznos seek injunction to stay in system, it states that a slew of lawsuits by franchisees and former franchisees, including Baber, allege that the company promises profits that are out of line with reality; that it forces franchisees to pay approved vendors too much for suppliers; that it allows stores to be built close together and; cannibalize each other; and that it blankets markets with coupons that further lighten the franchisees’ bottom line.”

The Rocky Mountain News also quoted a statement from Quiznos saying it found the association’s use of Baber’s suicide “deplorable” but said “that wasn’t the reason for the terminations.”

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Related reading:

• Quiznos Franchisees Fight Back, QSR
• Quiznos Reaction to Tragedy, Termination Notices
• Quiznos: A Tragic Ending to a Franchisee's Plight