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.

Sunday, August 01, 2004

I have attached a link to a short video. The video, in full, was sent to HQ and subsequently to the DA by HQ so it will not be news to them.

The purpose of the video was to demonstrate the two standards being used by the Development Agent and also DAI in monitoring Subway stores. In this case one store was being threatened by termination as it was poorly run, in disrepair and dirty, etc. In other words such a disgrace to the Subway system that termination of the franchise was necessary to preserve the good name of the brand! You have all seen Compliance Reports and understand how impossible it is to pass any test if the Field Inspector wants to implement the white glove treatment. My point in creating this video was to show that this policy was not being fairly applied to all stores.

As a follow up: The store owned by the Development Agent still is in poor repair and poorly run. It is also in the yellow color scheme even though other stores have been threatened with termination if they did not remodel immediately. I also note that there continue to be other stores in the area which are in the yellow color scheme. I suspect that there is 'special' circumstances which has little to do with need but rather relationships.

As an aside but still related to 'special' relations: If a new franchisee wants to buy a Subway store they are required to relocate if they live outside the immediate area to the neighborhood of the store. This is required before they are even granted an interview with the Development Agent. They are also required to work full time in the store. However; exceptions have been observed in recent store development where an individual continues to live well outside the area of the new store and also continue to work in another job. The store is being run entirely with staff. The individual continues to be a Field Inspector of Subway!

Here is the link to the video again. You may have to right click and 'save as' then play it later.

Take care.


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