Franchisees of Quiznos Sue the Company

Quiznos just gets deeper and deeper into trouble. Now the owners of two stores who couldn’t make a success of their businesses are suing the company claiming that new franchisees are being lured into signing-up with promises of earnings which could never be met.

Among the claims are:

Oversaturates a geographical area with more franchises than the market can support and doesn’t conduct research into whether an area can support even a single franchise.

Forces stores to buy food and supplies at a high price from company-mandated suppliers and won’t allow stores to get cheaper products from other suppliers.

Forces stores to accept coupons for free or discounted food but doesn’t reimburse the stores, cutting into the stores’ profits.

Once a store fails and closes, Quiznos threatens to make franchises liable for royalty payments laid out in a 15-year agreement.