Denver-based Quiznos hit by new lawsuits from disgruntled franchisees

March 17, 2013

Denver Post

Mac Clouse is a professor in the Reiman School of Finance at the Daniels College of Business.

Quiznos’ long-standing friction with disgruntled franchisees has surfaced again in a new round of lawsuits.

Since December, 10 suits have been filed in Denver District Court, alleging that the Denver-based sandwich chain has treated its restaurant owners unfairly.

The claims are similar to those in a long history of related legal actions — that the company has taken actions to increase corporate profits at the expense of franchisees who are struggling to break even.

University of Denver finance professor Mac Clouse said some restaurant chains with franchise supply agreements use their buying power to acquire food at low prices, and then pass the savings on to franchisees.