A group of Quizno's franchisees has filed suit against Quizno's alleging: fraud, unfair competition, breach of contract, and racketeering, among other things. The primary allegations are that Quizno's agreements with franchisees unlawfully prohibits them from seeking the best price on the goods they buy -- particularly food -- and instead requires them to buy only from certain suppliers. These suppliers, the plaintiffs claim, over-charge because they know the franchisees have no other options.
While the allegations are explosive, such suits are not new. A few years ago, Quizno's franchisees sued the company, alleging similar kinds of unfair business practices, in its hometown of Denver. Those cases were dismissed. It will be interesting to see both (a) what these franchisees have learned from the mistakes of their predecessors, and (b) how well the company fares outside its own hometown.