This article is a few months old, but makes for a good reminder:
The suit alleges Quiznos forces franchisees to buy food and supplies from the parent company, or its affiliates, at inflated prices, but sets artificially low prices for its products. That strategy makes stores unprofitable for franchisees, according to the suit.
The franchisees further allege Quiznos unlawfully sells franchises by leaving out or misrepresenting facts about its business operations. The plaintiffs seek lost investment funds in the suit.
Two similar suits against Quiznos, filed by Colorado and Arizona franchisees, were dismissed by Denver District Court judges in 2005. Those cases alleged Quiznos allowed franchisees to encroach on each others’ territories, overcharged for food and supplies, and misused advertising funds. A suit filed against Quiznos by 17 New Jersey franchisees last year remains open. Quiznos seeks the dismissal of this suit.
Quiznos denies the charges.
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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.
i don’t even think Quiznos prices are that low frankly.
The owners need to unionize in order to prevent the parent company from having the alleged monpoly. Unionization would enable the franchisees to negotiate in order to gain better terms on goods and services that the corporation currently controls. It makes financial sense to unionize. Unfortunately the franchisor knows that it has the upper hand and will not give in easily because that means that they will have less control. Less control equals less money. Those guys will never allow that to happen. They make their fortunes off of control – and your hard work.