February 17, 2006
Us Too?!?!
According to this Denver Business Journal article, Quiznos is being sued in New Jersey by another group of New Jersey franchisees. These plaintiffs claim Quiznos used “deceptive franchisee recruitment practices” and caused harm by its “failure to deal in good faith.” As noted in this previous blog entry, a similar suit was filed by other New Jersey franchisees in May 2005. That action was settled. In an enlightening statement about the new lawsuit, the franchisees’ attorney stated, “The Quiznos franchisees are taking this action because they have been financially injured.”
In other Quiznos news, two large private equity firms decided to pass on making an offer in the auction for the sandwich chain. According to this article, Thomas H. Lee Partners and Blackstone Group had initially been interested in the company, but declined to submit a bid. Based on the smaller pool of suitors, auction bids may not be as high as expected.
Posted by franchiselawblog at February 17, 2006 01:26 PM