FDD Items 3 & 4 · 2025 filing
Quiznos litigation history
What Quiznos disclosed about lawsuits, arbitrations and bankruptcy in the 2025 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.
Items 3 (litigation) & 4 (bankruptcy) at a glance
What the filing discloses
- Cases disclosed
- 1
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- None stated
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
No litigation disclosed against the current franchisor. One completed predecessor litigation: Horowitz, et al. v. QFA Royalties LLC, et al. (2014), a putative class-opt-out action alleging fraud, franchise act violations, and RICO-type claims by a former QFA franchisee; stayed during predecessor's bankruptcy, settled via bankruptcy court-approved agreement in 2015 (franchisee received $22,131.44 against a $330,000 unsecured claim), dismissed with prejudice November 30, 2015.
Item 3 (litigation) · 1 matter disclosed
Litigation cases
The franchisor and its predecessor
Concluded (1)
Horowitz, et al. v. QFA Royalties LLC, et. al.
settledBrought by a franchisee · QFA Royalties LLC (predecessor) · filed 2014-02-25 · Supreme Court of the State of New York, County of Rockland · 031006/2014
“… Case No. 031006/2014 (Supreme Court of the State of New York, County of Rockland).”Page 12 of the 2025 FDD, Item 3
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
Disclosed in the 2025 Franchise Disclosure Document
Item 4: bankruptcy
Predecessor QFA and affiliates filed a prepackaged Chapter 11 plan (In re QCE Finance LLC, et al., Case No. 14-10543, D. Del.) on March 14, 2014; plan approved May 12, 2014, effective June 30, 2014, case closed December 15, 2015. No bankruptcy disclosed for the current franchisor.
Disclosure signals that moved the score
How this shows up in the verdict
- Old predecessor bankruptcy (2014, closed 2015) - low weight
The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.
Before you weigh a lawsuit
How to read Item 3
A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.
Questions worth asking current and former franchisees, using the contact list in Item 20:
- Were you, or anyone you know in the system, party to a dispute with the franchisor?
- Was it resolved by settlement, arbitration or a court, and on what terms?
- Has the number of disputes gone up or down since you signed?