Since December, 10 Quiznos restaurant owners have filed lawsuits against Quiznos alleging that the Denver-based sandwich chain of trying to increase corporate profits at the expense of franchisees, The Denver Post reported Sunday.
The restaurant owners say Quiznos has driven up the cost of supplies and failed to provide adequate marketing support.
"The hidden mark-ups, which are the keystone of Quiznos' scheme, have generated massive profits for Quiznos while simultaneously driving its franchisees to financial ruin," one of the lawsuits says.
The increased distribution of coupons for sandwiches and an overall drop in sales have also led to loss in profits for franchise owners.
"The sales decline and the heavy couponing have really made it tough for franchisees to make a profit," said Jonathan Maze, an analyst and writer for Franchise Times magazine. "Quiznos charges a lot of money (to franchisees) for its food."
Quiznos issued a statement in response to the lawsuits, stating: "We believe that these lawsuits are completely without merit. Quiznos management team will not allow these lawsuits to distract us from our mission. We remain committed to delivering a premium product and experience to our guests, and helping our franchise owners grow their sales and profits."
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