Franchise Food Fight

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TORONTO — The longstanding fight between sub-sandwich chain Quiznos and its franchisees is heating up, thanks to the latest ruling by an Ontario court.

Yesterday, June 24, the Ontario Court of Appeal unanimously upheld certification of a national class action brought by Canadian franchisees of the Quiznos restaurant chain. 

“The class action alleges that Quiznos violated its franchise agreements and the federal Competition Act by working with its designated supplier, Gordon Food Services, to improperly inflate prices paid by Quiznos operators for their supplies,” reads a press release on the issue. “The claim also alleges that Quiznos has violated laws requiring franchisors to deal fairly with their franchisees.”

“This is a very satisfying end to a long and bitterly fought process to obtain class-action certification,” David Sterns, who co-represented the franchisee plaintiffs, is quoted as saying in Toronto’s Financial Post. “Quiznos spared no effort to prevent the franchisees from bringing this case forward as a group … We now have a fair fight on our hands.”

For a copy of the decision, click here.

 

 

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