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Court approves Canada-wide class action suit against Quiznos
May 11, 2009
BlueMauMau: The Ontario Divisional Court has approved for certification a Canada-wide class action lawsuit brought by Quiznos franchisees against their franchisor and its designated supplier, Gordon Food Services. The lawsuit alleges that Quiznos violated its franchise agreements and the federal Competition Act by acting together with Gordon Food to artificially inflate prices paid by Quiznos operators for their supplies and that such practices violate laws requiring franchisors to deal fairly with their franchisees.
The court gave numerous reasons for believing a class action "would be preferable to any alternative to resolving this claim." Quiznos has approximately 427 franchises in Canada.
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