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Quiznos accused of treating franchisees unfairly

March 18, 2013

Quiznos has been slapped with 10 lawsuits since December. The cases have been filed in Denver District Court and allege that the chain has treated its franchisees unfairly, according to the Denver Post.

Specifically, the franchisees allege that Quiznos increased the use of coupons for free and discounted food in order to make the franchisees buy more food at marked-up prices from the parent company's supply affiliate. Couponed food costs are absorbed by the franchisees.

"The hidden mark-ups, which are the keystone of Quiznos' scheme, have generated massive profits for Quiznos while simultaneously driving its franchisees to financial ruin," one of the lawsuits says.

Quiznos said the lawsuits are without merit and will not distract the company from its mission.

Three years ago, Denver-based Quiznos agreed to a $95 million settlement with nearly 7,000 class-action franchisees who claimed the company was overcharging for supplies and not offering sufficient marketing support.

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