Colorado

Nov 24, 2009 11:59 AM by Associated Press

Quiznos agrees to pay up to $95M to franchisees

Quiznos has agreed to pay up to $95 million to settle a class-action lawsuit brought by franchisees. About 6,900 franchisees and others interested in opening a store in Colorado, Wisconsin and Illinois are covered by the suit.

Operators claim the sandwich-shop company overcharged for supplies and didn't provide enough marketing support, resulting in high expenses and low profits. Lawyers for the plaintiffs say the largest share of the proposed settlement, up to $57.5 million, will go to 2,300 people who bought franchises but never opened stores because of disputes over their location.

Quiznos said litigation is time-consuming and that it was pleased with the terms of the proposal. A judge must still approve the deal and a hearing is scheduled in federal court in June.

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