Imagine if you were a franchisee and a mystery shopper from the franchisor anonymously visited your store and ordered a sandwich. The meat in the sandwich you served happened to be 1/2 an ounce smaller that the standard 4.5 ounces. Would it be fair to lose your franchise because of default? You did break the rules, eh? But what if was really a charade to encourage compliance?This was the situation a Denver court had to deal with. The final judgment was that Quiznos had in fact breached the contract by wrongfully terminating the defendants, and awarded them $349,797.http://blogs.westword.com/cafesociety/2009/01/quiznos_gets_grilled_in_a_new.php
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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.
