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News Briefs

By ALM Staff | Law Journal Newsletters |
August 25, 2010

Quiznos Class Action Settlement Finalized

A class action lawsuit filed by 8,200 franchisees of Quiznos was settled and dismissed on Aug. 10, leaving intact without change the draft settlement filed last year. U.S. District Court, Northern District of Illinois Judge Rebecca R. Pallmeyer affirmed the settlement, which includes payments of $206 million by Quiznos to individual franchisees, recognition of an independent franchisee association, and operational changes that will give franchisees a greater voice in national marketing decisions and opportunities for purchasing supplies through independent vendors. The lawsuit is Ilene Siemer v Quizno's Franchise Company LLC.

“The entire settlement is a big step in the right direction for the Quiznos system,” said Justin Klein, partner, Marks & Klein, LLP, which was one of the two firms for the plaintiffs in the litigation. Many of Klein's clients are still operating Quiznos restaurants, and Klein said that, “Time will tell, but we are optimistic that the settlement has and will result in better relations between franchisee and franchisor.”

Quiznos' executives and legal representatives did not respond to inquiries.

Quiznos Class Action Settlement Finalized

A class action lawsuit filed by 8,200 franchisees of Quiznos was settled and dismissed on Aug. 10, leaving intact without change the draft settlement filed last year. U.S. District Court, Northern District of Illinois Judge Rebecca R. Pallmeyer affirmed the settlement, which includes payments of $206 million by Quiznos to individual franchisees, recognition of an independent franchisee association, and operational changes that will give franchisees a greater voice in national marketing decisions and opportunities for purchasing supplies through independent vendors. The lawsuit is Ilene Siemer v Quizno's Franchise Company LLC.

“The entire settlement is a big step in the right direction for the Quiznos system,” said Justin Klein, partner, Marks & Klein, LLP, which was one of the two firms for the plaintiffs in the litigation. Many of Klein's clients are still operating Quiznos restaurants, and Klein said that, “Time will tell, but we are optimistic that the settlement has and will result in better relations between franchisee and franchisor.”

Quiznos' executives and legal representatives did not respond to inquiries.

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