News

Quiznos suit alleges 'Ponzi scheme' actions

August 20, 2007

Blue MauMau: Justin M. Klein, lead attorney for the U.S. class-action suit against the Quiznos sandwich chain, has stated in the complaint that franchise-agreement terms are "extremely one-sided in favor of Quiznos." If a location cannot be secured, Quiznos then threatens termination due to the franchisee's failure to open a store within the time period.

An amended class-action suit, filed Aug. 1, alleges that Quiznos fraudulently induced prospects to purchase franchises at a price of $20,000 to $25,000 each, knowing that their stores never would open.