Quiznos wins lawsuit filed by Illinois franchises

Quiznos has won a legal battle against Illinois franchisees who accused the national sandwich chain of improper business practices.

Six Illinois franchise operators contended in the 2007 lawsuit they were forced to buy supplies at higher prices from Quiznos, or from its approved vendors, with the profits funneled back to the corporation. They also contended the company set retail prices too low to enable them to make a profit.

U.S. District Judge Rebecca Pallmeyer in Illinois dismissed the lawsuit Monday, saying the franchisees failed to prove their claims. She noted each signed agreements identifying business risks and outlining details of the company's practices.

Pallmeyer left open the possibility franchisee operators could file their case in state court.

Attorney Justin Klein, who represents franchisees in Wisconsin, Illinois and Colorado, did not return a call seeking comment Thursday.

A federal judge in Wisconsin dismissed a similar lawsuit in November and a third was voluntarily dismissed last year in Michigan, Quiznos Chief Legal Officer Richard Emmett said Thursday.

Two lawsuits remain pending in federal court in Colorado, while Emmett said Quiznos hopes to resolve two similar lawsuits in Canada in the near future.

"We're just pleased with the progress we've made," he said.

The privately held Denver-based company has about 5,200 restaurants.