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, July 30, 2004

Just back from holidays and decided to check and see how my emailed questions to NAASF and my rep were answered. I have to admit I got an email from my rep on the board. He was very excited about the Convention in Las Vegas. That is about all folks!

What is it about NAASF which is so secret that they can't even tell us what is going on? The last update I have is the NewsWire which said that they were getting nowhere in their negotiations with DAI. That is a few months old now. They still don't use their own web site for any useful information. I'm sure it must just be run by an administrative assistant. How may hits do they get on that site and how long do they spend reading it?

I got a voice mail from my HQ co-ordinator which said that they only got 20 franchisees signed up for the install of the 'Speed Oven' and that the installation was now in our hands as they would not send an installation team. Boy, it must be very difficult to run some electrical wired to an oven. Can it be much worse than our bread oven? My electrician was able to do that one with no difficulty. It appears we will be getting the oven some time this fall. I will wait to see the oven and then decide where it will be best to install it.

We are now over 2000 visitors to this site and it continues to viewed by people from across the world.

I was reading some Subway disclosure information the other day. In our market of just over 200 stores there has been over 80 transfers as of this summer! This seems a bit high to me. Also there had been four abandoned stores, including one owned by the DA. I guess more than one franchisee took Fred's advise on; this may your best time to sell and get out of the system if you don't like what I'm doing?

On this note; does anyone really like the direction Subway is going these days? I noticed that even though my stores are among the best run in our area that I'm still getting marked out of compliance. How do I know my stores are among the best run? I do visit other stores and also very carefully monitor my stores. My labor cost is high because we have extra staff to ensure good customer service and a clean store. I also have sales among the best in the area.

In my latest travels I came across a TV ad., in a different territory, where they were advertising a 6" sub at about 1/2 the regular price. I can't see this being something which the franchisees would be wanting to do. I read the DA's hand in this advertising promotion. It sure makes it easy for the DA to direct the policy of the local FAF board when he has friends and family members controlling the vote. Do you think DA's have 'friends' on the Board of NAASF? I do.

That is about all for today.

I have attached a link to my holiday video which you may enjoy.

Take care.

 

 

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