News
Judge dismisses Quiznos lawsuit
November 6, 2007
BlueMauMau: Federal Judge William Griesbach of the U.S. Eastern District Court of Wisconsin has dismissed a banner lawsuit brought against Quiznos by 12 franchisees. The suit had accused Quiznos of requiring franchisees to purchase food, supplies and services at exorbitant prices from approved vendors, who in turn provided hidden kickbacks to Quiznos.
Allegations of the franchisor having exorbitant markups and kickbacks were ruled as vague. Whether such price gouging existed or not, the judge specifically cited the Uniform Franchise Offering Circular (UFOC) in which all franchise owners must sign. The franchisor could charge markups and kickbacks without restriction.
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