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Quiznos Settles Suit With Wisconsin Franchises

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MADISON (WRN) - Quiznos Subs will pay up to $95 million to settle a class action lawsuit from those who bought franchises to open restaurants. About 6,900 franchise owners in Wisconsin, Colorado, and Illinois are covered by Tuesday’s settlement. There was no immediate word on how many Wisconsinites are involved. The operators said Quiznos overcharged them for supplies and did not provide enough marketing support – causing expenses that were too high, and profits that were too low. The largest share of the settlement will go to 2,300 people who bought Quiznos franchises but never opened their sandwich shops, because of disputes over their proposed locations. Quiznos said it agreed to a settlement because it was happy with the terms, and it would have been time consuming to take the case to a trial. A federal judge must still approve the payments in a hearing set for next June.

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