World of Franchising - SUBWAY & NAASF

A discussion of issues affecting franchisee operators in the Subway franchise system and how the system may be improved. If you have any comments and wish to contribute to this web page; feel free to email the author.

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Location: Canada

My background is in Research and Development (Science) as well as Economic Development (Business). Currently managing my own businesses. My degree; B.Comm, Finance Major.

Monday, April 19, 2004

I have been busy talking to franchisees over that past couple of days. Some actually call me long distance to discuss their problems. I don't know the extent of problems out there in Subway land but, from my limited exposure to a small area, it must be fairly severe. I can't understand why the franchise community has not become more active. Possibly it is that the ones who get into trouble generally are so disillusioned with the system and the lack of support that they throw in the towel. DAI may feel that these individuals can't be team players and not dedicated to the system and rightly should be encouraged to leave. It is my belief that this is not correct. I have personally met many of these individuals and you could not wish for better people. I think Subway will be poorer for their loss but it will not become apparent until much later, possibly when it is too late to reverse the cancer of ill will which is growing in the system.

I read this post on a web site recently and it serves to illuminate some of the problems perceived by some:

"Let's not forget Fred's "carrot garden". That's why he packs 3 bags too many of carrots per box of lettuce blend. I have been in the system for 6+ years. It had gotten better & better every year up until about 6 - 12 months ago. Then the nazi tactics really broke in. 4.5% faf payments with no additional advertising that I have seen. (less in my market?) Forced beverage supplier COKE "Personally I think it taste like S*IT! + I live in a Pepsi friendly market area. 98 hours per week minimum. My areas in bed by 9:00pm except for the criminals, crack heads and cops. Toaster ovens, they look like a small pizza oven, "oh ya, I forgot we will probably be making pizzas somtime next year, so they will be perfect" and at the same time we can change our name to PIZZWAY. I think the toasters are a good idea, but the expense of the wiring upgrade will take a while to recoup. It is a fact, Fred does not care about the franchisees at all lately. I use to make a good living $150K in 2002 down to $100k in 2003 due to additional stores being built. I'm guessing I'll make around $50k in 2004 All 3 of my stores are for sale now. I'm getting out while I still can! If you really want to pend some money on a franchise & you think subs is where its at, open up or buy an existing Quiznos. I've seen a couple for sale doing over 750k a year in sales. Fred WILL eventually distroy what he created single handedly. The writing is on the wall, he's slowly pissing off and financially distroying too many people." [SIC]

I'm not saying that DAI is all bad but there is definitely a perception in the community that DAI is not listening to the franchisees anymore. Team play means you listen and act on concerns in a responsible way. You respect the opinions of others and admit that you may just be wrong at times!

Till the next time, take care.


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