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.

Friday, April 09, 2004

I have been in the Subway system now for well over 10 years and am dismayed at the trend which had become evident over that past few years.

Subway used to be an organization which listened to its franchisees and acted upon complaints and recommendations. It was a dynamic place to be where one felt part of a team where the individual owner was respected and actually listened to. There was a very good team spirit.

The organization is now one of the most litigated franchises in North America. Franchisees are being terminated without recourse or compensation. There are many instances of store encroachment which result in Subways actually competing with existing customers for a diminishing slice of the pie. Stores are being audited and, even if no under reporting is found, the owner is assessed a substantial fee of several thousand dollars. Again, there is no recourse.

What needs to be done is for the franchisee to take control of the franchise system so that the real owners, with the biggest investment, have some say on how the operation should be run.


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