A federal judge in Denver has declined to summarily dismiss a class-action lawsuit by franchisees against the Denver-based Quiznos sandwich shop chain.
U.S. District Judge Wiley Daniel on Wednesday denied a motion to dismiss the suit, which alleges fraud and breach of contract by Quiznos.
The suit — Bonanno et al. v. Quiznos Franchise Co. LLC — was originally filed in New Jersey state court in February 2006, and in November 2006 made its way to federal court in Colorado. Quiznos filed a motion to dismiss the case last August.
The suit alleges that Quiznos induced would-be franchisees to pay up to $25,000 “when it knew that the franchisees would never receive anything in return for their franchise fees.”
It alleges that “Quiznos took the franchise fee from more than 3,000 franchisees and has failed to provide a store for them,” then failed to return the fees.
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