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Franchise owners file lawsuit against Quiznos

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Owners of Quiznos franchises filed a class-action lawsuit against the Denver-based sandwich shop chain on behalf of an estimated 5,000 owners nationwide, the Dayton Business Journal reported.

The Toasted Subs Franchisees Association Inc., which filed the lawsuit in federal court in Colorado, claims that the company forces franchise owners to buy food, supplies and services from Quiznos or its affiliates at inflated prices and sets low retail prices for its products. In a news release, the association said, “the franchiser has systematically defrauded its franchisees in a scheme designed to build the brand at the expense of its operators in the field.”

It also alleges that Quiznos “unlawfully participates in a scheme to sell the franchises by omitting or otherwise misrepresenting key facts about Quiznos’ business operations.”

Quiznos would not comment on the lawsuit because it had not seen the filing on Wednesday. The company has about 20 locations in Greater Des Moines.