Class Action by Franchisees against Quiznos Given Green Light by Appeal Court

…Ontario Divisional Court approved for certification a Canada-wide class action lawsuit brought by Quiznos franchisees against their franchisor and its designated supplier, Gordon Food Services…

Sotos LLP
April 30, 2009

Class Action by Franchisees against Quiznos Given Green Light by Appeal Court
News Release

TORONTO, April 30 /CNW/ - On 27 April 2009, the Ontario Divisional Court approved for certification a Canada-wide class action lawsuit brought by Quiznos franchisees against their franchisor and its designated supplier, Gordon Food Services (GFS).

The class action alleges that Quiznos violated its franchise agreements and the federal Competition Act by acting together with GFS to artificially inflate prices paid by Quiznos operators for their supplies and that such practices violate laws requiring franchisors to deal fairly with their franchisees.

According to Douglas Johnson, the lead plaintiff and President of Quiznos' Canadian franchisee association, "It is vital that franchisees have access to competitively priced supplies in order to have a chance to succeed. Without the ability to bring this case forward as a group, franchisees face insurmountable obstacles in enforcing their legal rights. We now have a real chance to fix the problems of the past and help franchisees in the future."

Quiznos franchisees have long complained about overcharging on supplies, but the franchisees' efforts to stop the alleged overcharging were resisted by Quiznos and GFS.

In considering the suitability of Quiznos franchisees asserting their claims as a class action, the court endorsed the franchisees' right to seek justice as a group. The court gave numerous reasons for believing a class action "would be preferable to any alternative to resolving this claim." Best advancing access to justice was among these reasons.

For further information
If you would like to learn more about this case, please contact David Sterns at moc.pllsotos|snretsd#moc.pllsotos|snretsd, (416) 977-5333 ext 313 or Allan D.J. Dick at moc.pllsotos|kcidjda#moc.pllsotos|kcidjda, (416) 977-5333 ext 309.

http://finance.yahoo.com/news/Class-Action-by-Franchisees-cnw-15085549.html?.v=1


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