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Quiznos Beats Class Action: Disclaimer Clauses Commonly Used By Most Franchisors Upheld as Fully Enforceable

By Charles G. Miller and Darryl A. Hart
December 27, 2007

As discussed in the December 2007 issue of FBLA, sandwich sub shop franchisor Quiznos successfully beat back a class action challenging its supplier arrangements. (Westerfeld v. The Quiznos Franchise Company, CCH Bus. Franchise Guide '13,734 (E.D.WI Nov. 8, 2007))

One important aspect of this decision is that the Eastern District of Wisconsin court had no problem dismissing a class action challenge to Quiznos' supplier arrangements on the basis that various disclaimer clauses commonly used by most franchisors were fully enforceable and effective to bar the franchisees' fraud and RICO claims. This decision comes in the face of recent attacks on franchise agreements as one-sided and unconscionable.

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