CHICAGO A federal judge here has thrown out a year-old franchisee lawsuit against Denver-based Quiznos that accused the sub sandwich chain of fraud, breach of contract and deceptive business practices.
U.S. District Judge Rebecca Pallmeyer said in a March 31 decision that Quiznos did not coerce the franchisees to invest in a Quiznos operation. Pallmeyer referenced a similar case against Quiznos by some franchisees in Wisconsin that was dismissed in November for similar reasons. Those franchisees have since refiled their case in Wisconsin state court.
Rich Emmett, chief legal officer for the more than 5,000-unit franchisor, said the company was pleased with the decision.
“It was what we expected,” he said. “Now rather than spend time and money in court, we can spend time promoting our stores and improving things at the restaurant level. That’s what we’re here for.”
However, the attorney for the franchisees in Illinois and Wisconsin said they would evaluate their options and likely file a lawsuit in Illinois state court.
“As I have stated in the past, our legal team will continue to fight for the Quiznos franchisees until they receive justice,” said Justin Klein, a partner in the Marks & Klein law firm in Red Bank, N.J. Klein is also representing Quiznos franchisees in a lawsuit against the company that is pending in Denver.