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Quiznos sub shop franchisees sue parent company
Friday, July 04, 2008

Seven area franchisees of the Quiznos toasted sandwich chain have filed a federal lawsuit against the parent company, accusing it of perpetrating an illegal business scheme.

The lawsuit seeks to be a class action, and is similar to other such suits filed in Colorado and Wisconsin.

According to the lawsuit filed in the Western District of Pennsylvania, Quiznos has exploited its franchisees.

It accuses the parent company of extracting "exorbitant and unjustifiable payments and expenditures" that allow it to "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."

The plaintiffs also claim that Quiznos is saturating geographic areas with more franchises than can be supported, and that it uses its control to force franchisees to buy unnecessary goods and services from specific, mandated suppliers.

Among the seven plaintiffs named in the suit are Quiznos locations in Mount Pleasant, Beaver Falls and New Stanton.

First published on July 4, 2008 at 12:16 am
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