MILWAUKEE A federal court judge has thrown out a lawsuit filed last year by 12`Quiznos Subs franchisees that accused the sandwich chain of deceptive and fraudulent business practices.
In a 28-page ruling made public Tuesday, U.S. District Judge William Griesbach dismissed the suit saying the plaintiffs failed to prove their claims that Quiznos forced them to buy supplies at higher prices, with the allegedly inflated profits channeled back from approved vendors to headquarters in the form of “kickbacks.”
Griesbach noted the franchisees had signed detailed franchisee agreements that offered “exhaustive disclosures and specific disclaimers” about the nature of the business.
Rich Emmett, chief legal officer for Denver-based Quiznos, the franchisor of more than 5,000 sandwich shops, said the ruling came as no surprise as the chain had always stated the lawsuit was without merit.
“This lawsuit, very similar to same allegation as other lawsuits filed by the exact same attorney,” Emmett said of the action that was filed in federal court here. “We anticipate the outcome of the other lawsuits will follow suit.”
Franchisee attorney Justin Klein of Marks & Klein law firm in Red Bank, NJ, could not be reached for comment.
Similar lawsuits filed by Quiznos franchisees are still pending in three other states.
