A federal judge Wednesday refused to dismiss a lawsuit brought by Quiznos franchisees seeking return of more than $75 million in fees despite never opening a store.
In a related development, a Canadian magistrate Tuesday denied class-action status for 400 franchisees in a 2006 lawsuit that alleged similar claims against the Denver-based sandwich-shop company.
U.S. District Judge Wiley Daniel decided the franchisees have alleged valid claims for violations of the Colorado Consumer Protection Act for fraud and breaches of good-faith and fair-dealing covenants.
The plaintiffs seek class-action status for more than 3,000 franchisees who said they paid to open a store but never did because the company allegedly failed to provide timely site-selection services. The Colorado case is among several pending against Quiznos in several states alleging deceptive and unfair business practices.
“It’s not a decision on the merits, simply that we can get into the case,” Quiznos chief legal officer Rich Emmett said of the Colorado case.
David Migoya, The Denver Post
