Sub sandwich franchisor Quiznos fired off a quick response to the press announcements issued in the Illinois class action suit against them (See Quiznos Franchise Lawsuits Just Keep On Coming). This latest lawsuit alleges that Quiznos has “systematically defrauded its franchisees in a scheme designed to build the brand at the expense of its operators in the field.”
The lawsuit contends that the company forces franchisees to buy food, supplies, and services from Quiznos or its affiliates at inflated prices while setting artificially low retail prices for its products — in many instances,
making the stores unprofitable for the franchisees. In addition, the plaintiffs also allege that Quiznos continues to sell franchises by “omitting or otherwise misrepresenting key facts about Quiznos’ business operations…”
Quiznos response, posted in its entirety below, was to point out that that this lawsuit represents only five of more than two hundred Illinois Quiznos owners. While not responding to the specific allegations, Quiznos attorney added that they are “wholly without merit.”
Quiznos Responds to Allegations Made by Marks & Klein and Christopher Bray
Illinois Class Action Lawsuit Represents Five, Less Than 2.5%, of the More Than Two Hundred Quiznos Franchise Owners Statewide
DENVER, Colo.–(BUSINESS WIRE)–Quiznos, one of the nation’s fastest-growing quick service restaurant chains, today responded to allegations made Thursday, April 19, 2007, with regard to Illinois’ class action lawsuit filed by plaintiffs’ bar law firm, Marks & Klein, against Quiznos.
“Through their repeated grandstanding with the press, Justin Klein and Christopher Bray have repeatedly demonstrated that they have little knowledge of the Quiznos business, or appreciation for its many successes,” said Fredric A. Cohen, Member of Cheng Cohen LLC, Quiznos counsel. “Additionally, their comments are misleading, making it appear as if Justin Klein represents a large number of Quiznos Illinois franchisees. In reality, only five of the more than 200 Illinois Quiznos franchise owners are involved.”
He continued, “These claims are false, misleading, and wholly without merit and, therefore, the company must vigorously defend itself, its brand, and its goodwill on behalf its franchise owners throughout the nation.”
Celebrating its 25th anniversary in 2006, Denver-based Quiznos is a national chain designed for today’s busy consumers who are looking for a tasty, fresher alternative to traditional fast food restaurants. Using only premium quality real ingredients, Quiznos restaurants offer creative, chef-inspired recipes for sandwiches, soups and salads. With more than 5,000 franchise restaurants, Quiznos is one of the fastest-growing quick service restaurant chains.
In June 2006, Nation’s Restaurant News ranked Quiznos in its Top 100 Restaurant Chains as the #1 restaurant chain in growth in number of units – five years in a row. Entrepreneur magazine in January, 2006 ranked Quiznos in its annual Top Franchise 500 as the #2 Best Overall Franchise and QSR magazine ranked the chain in its Top 50 Chains in August, 2005 as #3 by change in system wide sales.
For more information, visit www.quiznos.com.
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