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



    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:

For further information: If you would like to learn more about this
case, please contact David Sterns at dsterns@sotosllp.com, (416) 977-5333 ext
313 or Allan D.J. Dick at adjdick@sotosllp.com, (416) 977-5333 ext 309.

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