Judge nixes 1 of 4 suits vs. Quiznos over fraud claims

Nation's Restaurant News,  Nov 19, 2007  

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MILWAUKEE -- A federal judge here has dismissed a lawsuit filed last year by 12 Quiznos Sub franchisees that accused the Denver-based franchisor of deceptive and fraudulent practices.

In a 28-page ruling, U.S. District Judge William Griesbach said the plaintiffs failed to prove that Quiznos forced them to buy supplies at higher prices and channeled sums from approved vendors to Quiznos as kickbacks. Griesbach noted that the plaintiffs' contracts with the franchisor of some 5,000 sandwich shops contained "exhaustive disclosures and specific disclaimers" about the nature of the business.

Rich Emmett, Quiznos' chief legal officer, said the ruling came as no surprise because the company had always stated that the lawsuit was without merit.

Franchisee attorney Justin Klein of the Marks & Klein law firm in Red Bank, N.J., could not be reached for comment.

Similar lawsuits filed by other Quiznos franchisees are still pending in three other states.

Emmett said those complaints were filed "by the exact same attorney," and that Quiznos expect them to be dismissed also.

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