Quiznos Forks Over Millions To Franchisees

Denver Post:

Denver-based Quiznos has agreed to settle — for up to $95 million — a series of class-action lawsuits brought by disgruntled sandwich-shop franchisees.

Attorneys said the settlement could help end years of acrimonious relationships between Quiznos and its store operators, who said they were maltreated by the chain.

Franchisees and others who wanted to open a store — about 6,900 are covered by the class-action lawsuits — claimed the chain overcharged for required supplies and failed to provide adequate marketing support. As a result, the lawsuit claims, expenses were inordinately high and profit margins low.

According to plaintiffs’ attorneys, the biggest part of the settlement — up to $57.5 million — is earmarked for an estimated 2,300 operators who had paid to acquire Quiznos franchises but never opened stores after site-selection disputes with Quiznos.

In addition, Quiznos will contribute $19.4 million to its advertising and marketing trust funds and offer credits or payments of up to $17.85 million to existing and former franchise owners.

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