DENVER—Quiznos franchisees have filed a class-action lawsuit accusing the sandwich shop chain of misrepresenting the chances of financial success to prospective owners.
The lawsuit filed Tuesday in U.S. District Court in Denver lists 41 plaintiffs and seeks unspecified damages. It alleged among other claims that Quiznos saturates areas with too many stores; requires franchisees to buy unneeded items, sometimes only from certain suppliers; and requires that franchisees accept coupons without reimbursement from Quiznos.
Similar lawsuits were pending in Illinois, Michigan, and Wisconsin.
The class-action suit was filed the same day the settlement of a suit filed by a Texas franchisee was announced.
Quiznos Chief Legal Officer Richard Emmett said then that Quiznos had settled three other lawsuits in the United States and one in Canada, and was addressing franchisees’ concerns.
“From a technical (legal) perspective, I am not impressed with the merits of many of the lawsuits,” he said then. He was not immediately available for comment Wednesday evening.
