News
Quiznos faces class-action lawsuits
February 23, 2006
The Denver Post: Denver-based Quiznos is facing a pair of proposed class-action lawsuits over delays in getting locations approved for its franchisees.
Plaintiffs in both cases claim the toasted-sub chain is selling them franchise territories, failing to locate or approve sites, then threatening to terminate their franchise agreements because they have not opened stores within the required time. Such termination would result in the forfeiture of franchisee fees that start at $25,000.
A Quiznos spokeswoman said Wednesday that the company "complies with all applicable laws" and will "vigorously" defend itself against the allegations in both suits.
Quiznos is reportedly on the market, although company officials have not commented on the potential sale.
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