Fast food chains set to face $5 billion lawsuit over fast food franchises
Fast food franchisees and franchisees of other fast food chains could face a $5 million lawsuit filed Tuesday in the Southern District of New York, seeking damages for “malicious and unlawful” actions against franchisees who have worked with fast food chain Subway and other fast-food brands.
The lawsuit is one of the first of its kind brought against fast food franchisers, which are often seen as key players in the fast food industry.
It seeks to recover damages from the franchisees, as well as for “unfair and unreasonable” conduct, the lawsuit says.
The plaintiffs in the suit include franchisees Subway and Papa John’s Pizza, which is owned by Papa John himself, and Subway franchisees Fritos, Papa John John’s Signature Grill, and Papa Johns Pizza, among others.
The fast food companies argue the franchisee and franchisor are responsible for all the food that is served in their restaurants, but the plaintiffs claim the franchises’ “failure to promote the proper use of franchisee facilities” was responsible for their inability to properly serve customers.
Franchisees are also charged with the “cost of providing the franchise and the franchise’s employees with food, including meals, drinks, and other meals provided at the franchises.”
The suit alleges that the franchise owners “have willfully discriminated against franchisee franchisees in violation of New Jersey law.”
The franchisees are seeking “a declaratory judgment of non-economic damages, monetary damages, punitive damages, injunctive relief, and a permanent injunction to prohibit Subway and its franchisees from using franchisees facilities to serve food and beverage products to their franchisees.”