May 06, 2005

Quiznos Franchisees "Sub" Judice

On May 6, 2005, 17 Quiznos franchisees filed suit against Quiznos in Middlesex County, New Jersey for fraud. The franchisees claim that they were harmed by Quizno's "deceptive recruitment practices" and "failure to deal in good faith" when it accepted franchise fees from the plaintiffs but refused to approve site locations for their Quiznos shops. The complaint further alleges that in 2003 and 2004, Quiznos sold 234 trade areas in New Jersey but has not opened a single restaurant in any of them. According to the plaintiffs, under the franchise agreements entered into between Quiznos and plaintiffs, plaintiffs are required to obtain site approval from Quiznos and open a location within 12 months of signing the franchise agreements or risk default. Recent statistics show that a new Quiznos opens, on average, every 16 sixteen hours somewhere in the world -- does that include New Jersey?

Posted by franchiselawblog at May 6, 2005 03:08 PM