Quiznos to Pay $2M to Franchise Owners
July 25, 2007 by Sean Kelly
Filed under QUIZNOS
(FranchisePick.Com) Beware of any franchise agreement that requires you to find a location by a certain time or forfeit your franchise fee. Canadian Quiznos franchise owners found this lesson out the hard way. A Canadian judge has ruled that Quiznos must return $2M in fees, but franchisees aren’t happy. They’ll only be getting 1/2 to 1/4 of their $30,000 fees returned.
There’s no happy ending to this story, unless you’re the lawyer who put together the settlement deal. The judge agreed that lawyer Ben Hanuka should be paid up to $450,000, or 20 per cent of the total settlement.
Happy Hanuka!
Sandwich chain agrees to refund deposits received from more than 25 prospective store franchisees Jul 23, 2007 04:30 AM Jim Daw
Companies that run the Quiznos Sub sandwich chain in Canada have agreed to refund part of an estimated 170 franchise deposits.
Lawyers defending against a class-action lawsuit have also assured an Ontario judge that Quiznos has addressed causes of past grievances.
So the judge has approved a $2 million settlement over objections from more than 25 of those who lost deposits and taxes in the range of $30,000 each.
Hamilton resident Moiez Al-Harazi, a recent immigrant to Canada, led the charge against Quiznos with his wife Susan Shoraan.
The couple had lost about $28,500, plus federal sales tax when they failed to find a shop location within the 15 months dictated in franchise agreements. Al-Harazi had to return to England to work for two years to support his family.
Lawyer Ben Hanuka negotiated and recommended the settlement deal. The Hamilton couple stands to recover about $15,000, plus fees for acting as representative plaintiffs. Others now eligible for refunds are free to opt out if they want to risk filing a new lawsuit.
Hanuka prepared a novel claim – that Quiznos broke franchise law and owed full refunds for not warning how difficult it is for business novices to find a suitable location.
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