Tomorrow will be the deadline for Quiznos Subs franchisees to join in or opt out of the settlement agreement of four class action lawsuits that was approved by Judge Rebecca Pallmeyer in Illinois federal court last November. The 160-page legal document cautiously details the structure of the plan to compensate approximately 10,000 restaurant owners, in order to wipe the slate clean for Quiznos after years of litigation and bad press.
Included in that number are current and former franchisees, and various classes of SNOs (Sold but Not Opened) where buyers bought franchises but were unable to find locations or open their stores in the required time period of their franchise agreements. SNOs had to forfeit their franchise fees.
Quiznos claims the cost of settling the lawsuits is approximately $100 million, which will impact almost 7,000 individuals in the system, as well as several thousand more who have closed or never opened their stores. Because the litigation revolved around the company’s supply chain and food costs, marketing and advertising funds, disputes with franchise owners and other franchise investors, the settlement offers related solutions.