QUIZNOS SUBS: PA Franchise Owners File Lawsuit

Source:  Blue MauMau

 

A class action lawsuit against Quiznos Subs was filed on July 3 on behalf of Pennsylvania franchisees by attorney Peter J. Daley and Associates, P.C. The litigation arises from the illegal business scheme by Quiznos and its "web of affiliated entities and individuals who control and operate the Quiznos franchise system," according to the Complaint filed in the U.S. District Court.

Through the alleged scheme, Quiznos is accused of having fraudulently induced franchisees into the system and then exploited their control and economic power in order to extract exorbitant and unjustifiable payments and expenditures from them. The lawsuit states, "As a result, Defendants [Quiznos] reap grossly inflated sales and profits creating an illusion of corporate growth and business prosperity while causing substantial, permanent, irreparable financial harm to existing franchisees."

…A number of other class action lawsuits have been filed over the past few years in various states including Colorado, Illinois, New Jersey and Wisconsin, as well as a national class suit, all by lead attorney Justin Klein, Marks & Klein law firm in Red Banks, New Jersey. 

The class action Complaint explains the two primary components to Quiznos’ alleged scheme. The first claims that after the sub-sandwich chain induces franchisees into the system by misrepresenting the facts, it further takes advantage of the store operators by saturating geographic areas with more restaurants than can reasonably be supported….

The second component of the lawsuit accuses Quiznos of exploiting the overwhelming economic power it holds over its franchisees by creating a captive artificial consumer market, comprised of all of its franchisees, for products and services that it requires to start and continue a franchise business. While concealing its own relationship with its vendors, Quiznos also uses exclusive control over the franchise system, forcing franchisees to purchase unneeded products at unreasonable prices, and to accept coupons from customers for free or highly discounted products.

6 thoughts on “QUIZNOS SUBS: PA Franchise Owners File Lawsuit

  • September 18, 2008 at 10:46 am
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    how to join a law suit against Quiznos not refunding deposit and not opening a store

  • September 30, 2008 at 12:11 pm
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    I closed my franhise located in Erie,Pa in Sept. 2007.I would like to join a class action lawsuit aginst Quiznos without providing the attorney with a retainer up front, I already lost a considerable amount of money,his fee could come from any settlement. Is this possibly?

  • November 6, 2008 at 1:01 am
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    I owned two Quiznos locations in Seal Beach, CA and was forced to sell them due to extreme financial stress in 2004. The Quiznos team did not care about how poor we were doing, as long as they received their weekly loyalties. “Terrible franchisee support.” I lost everything in this investment.

  • January 6, 2009 at 3:50 pm
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    I purchased a quiznos store in 2007. I thought it will be a start of dreram that I’ve had since I was kid. I’ve always wanted to have my own business. It is a 2 year old store the old owner, Eric Davis, inflated his finanacial statement making me think that it was making money my realtor a friend of the old owner and my neighbor, Chay Tan, told me I will be making $4,000 a month, what a neighbor. I placed $90,000 down of my hard earned money, owe the bank about $100,000, owe 2 or 3 financial institutions about $120,000. I lost $20,000 my first year and this year that has just past I’ll probably loose another $15,000. Make things short my dream turned into a nightmare. Event 1 of this year (2009) quiznos lowered 80% of our prices without lowering the prices of the product we buy from Roma. I want to join a class action lawsuit against the franchise from hell, Quiznos.

  • January 14, 2009 at 6:53 pm
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    iIneed lawyer for lawsuit against quiznos sub corp.I was quiznos owner they made me to go bk 2008 and quiznos misrepesent and chit me with $240.000 hard working money i had to open Q sub . , please let me know if you can help me.

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