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Quiznos Sued Over Treatment Of Franchisees

Law360 (March 13, 2007, 12:00 AM EDT) -- In the latest of a series of suits, dozens of Quiznos restaurant owners have accused their parent company of fraudulently inducing them to purchase franchises and then exploiting them through racketeering and anticompetitive conduct.

According to the proposed class action, filed Feb. 23 before the U.S. District Court in Detroit, Quiznos as a matter of practice misrepresents the financial prospects of its contracts with franchisees.

The Michigan suit cites a document by a Quiznos attorney that states 40% of Quiznos units were not breaking even. “This...
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