1/2 Ounce of Meat Costs Quizno's Franchisee Their Entire Business
Is it actually true that a franchise was terminated over one under-portioned sandwich? In a case that was finally decided at the start of this year, it appears that was exactly what happened to a Pennsylvania couple—owners of a Quiznos franchise. They were terminated after a secret shopper purchased a Prime Rib Philly Cheesesteak sandwich at their Quiznos store.
In 2006, as part of a national advertising campaign being planned by Quiznos in which Quiznos planned to claim its sandwich contained twice as much meat as Subway’s comparable sandwich, Quiznos sent out secret shoppers to several of its franchisee locations to purchase Quiznos’ Prime Rib Philly Cheesesteak sandwiches. The purpose was to make sure each sandwich contained at least 4.5 ounces of meat. A secret shopper at the Pennsylvania franchisee’s store purchased a sandwich that purportedly only had 4 ounces of meat. Quiznos sent out a letter terminating the franchisee. Although Quiznos claimed their plan was to allow the franchisee to cure the default, Quiznos sued the franchisee only two days after sending them the termination letter. In January, the franchisee won their case for wrongful termination, being awarded $349,797.00, plus fees, court costs, and post judgment interest.
It can be intimidating for a single franchisee to contemplate going to court with their franchisor, especially if the franchisor is large, but franchisees need to remember, the courts are not looking at the size of the litigate they are looking at the strength of the litigant’s case. If a franchisor has terminated a franchisee in violation of the terms of the franchise agreement, then a single franchisee should not be afraid just because of their size to do what is necessary to protect their investment.
