A Statement of Claim filed in the Ontario Superior Court of Justice on behalf of almost two hundred Ontario franchisee class members against Quiznos Sub, America’s second largest submarine sandwich chain, seeks a refund of all deposits and payments along with damages for those who did not receive a franchise location after paying franchise fees.
Contracts with Quiznos and franchisee class members allow franchisees only twelve months to find retail space that would be approved by Quiznos. The Statement of Claim alleges Quiznos knew that it takes much longer on average to secure such space. Whether the franchisees find an acceptable location or not, franchise fees and sales taxes totaling $30,495.00 are not refundable under the contract.
Many of the proposed franchisee class members have been without a site for several years, some since 2001.
The proposed class action challenges Quiznos’ right to keep the franchise fees and claims that franchisees are not informed how difficult and time-consuming it would be to find a suitable location and whether each franchisee’s designated territory contains a suitable site.
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