More biting accusations from 28 Quiznos franchisees in this class action in Wisconsin. Here are some excerpts:
Quiznos Sub forces its franchisees to buy food and supplies from the company or its approved vendors at unfair prices and sets retail prices too low for the stores to make a profit, according to a lawsuit filed by 28 operators of Quiznos franchises in Wisconsin….
The lawsuit, which seeks millions of dollars in damages for lost investments, accuses Quiznos of fraud, violations of federal and state antitrust laws, racketeering, breach of contract and violations of Wisconsin’s fair dealership law, attorney Justin Klein said Tuesday…
“They tell you who you can buy from and who you can’t buy from,” he said. “The prices are unreasonably high. Quiznos gets rebates from approved vendors.”
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Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-715-8115.
FYI
There is a very lively discussion going on at http://www.bluemaumau.org regarding Quiznos and how franchisees feel about the company and the requirment to purchase products from Quiznos.
To give you a quick update, on November 27th a Quiznos franchisee in California committed suicide, a note and USB Drive containing a letter was found in his pocket by police. The letter is published with permission by his family. You can read the letter at: http://www.bluemaumau.org/files/Bob%20Babar%20Suicide%20Note.pdf
The letter blames Quiznos Corporate for “killing him, destroying his life and destroying him family”.
Quiznos is also being investigated by the State of Maryland:
http://www.ftc.gov/os/caselist/projectfalsehopes.htm