April 07, 2008
Another Win for Quiznos
Chalk one up for Quiznos in the flurry of franchisee lawsuits it has recently faced (see earlier blog postings). A district court judge in Illinois has dismissed antitrust claims from six Illinois franchisees. The complaint alleged that the franchisees were forced to buy supplies at higher prices from Quiznos or its approved vendors with the profits funneled back to the corporation, and that the company set retail prices too low to enable the franchisees to make a profit. According to this article, U.S. District Court Judge Rebecca Pallmeyer dismissed the claims, noting that each of the franchisee plaintiffs had signed agreements identifying business risks and outlining the details of the company's practices. A federal judge in Wisconsin dismissed a similar lawsuit in November and a third was voluntarily dismissed last year in Michigan.
Posted by franchiselawblog at April 7, 2008 02:01 PM