August 27, 2007
Quiznos Franchisee Association Woes Continue
In a continuing saga, Quiznos settled a lawsuit with Chris Bray, former president of the Toasted Subs Franchisee Association, Inc., and certain other franchisees for claims related to Quiznos’ quest to terminate his franchise agreements after Bray and other Quiznos franchisees allegedly posted negative information about the franchise on the web. Right after settlement, however, according to this article, the franchisee association filed a class action lawsuit against Quiznos “on behalf of an estimated 5,000 owners nationwide, ‘alleging that the franchisor has systematically defrauded its franchisees in a scheme designed to build the brand at the expense of its operators in the field.’” The lawsuit also alleges that Quiznos misrepresented “key facts” to prospective franchisees during the franchise sales process.