In federal court in Denver, five Phoenix area franchisees sued their Colorado-based franchisor, Quiznos Sub, for deceptive trade practices, breach of contract and fraud. According to the Denver Post, the claims are related to Quiznos' 1999 expansion in Arizona. In a March 2003 press release on Quiznos' website, the company stated that it was expanding at a rate of one new store every 16 hours. One of the allegations asserted by the Phoenix franchisees is that Quiznos reneged on promises that stores would not be too close together. They are seeking recision of their franchise agreements, restitution, treble damages and attorney's fees.
Posted by franchiselawblog at June 14, 2004 11:04 AM