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 20, 2006

Subway is suing franchisees!

In order to derail attempts by franchisees to maintain some form of control over their business DAI (Doctor's Associates Inc.) under the direction of Fred Deluca and Peter Buck have taken a very agressive action of going after some of the franchisee's board members. Bear in mind that the board members were all democratically elected by franchisees to represent them.

Here is a copy of an email sent to all franchisees by NAASF (North American Association of Subway Franchisees). To get more detail of event leading up to this you should research the archives in this Blog.

"We want to update everyone in the Subway® family about a troubling development in the dispute between DAI and the Franchisee community involving DAI's attempt to grab control over SFAFT, and to take away many of your rights under your Franchise Agreements.

As you are aware DAI has refused to negotiate a mutually acceptable solution with NAASF. This very fact prompted NAASF to file the current lawsuit against DAI in the Connecticut state court. Rather than responding to NAASF's complaint in the Connecticut state court on the merits, DAI instead chose to file 11 new lawsuits in Federal Court against a select group of NAASF's volunteer Directors. NAASF filed the complaint on behalf of you in good faith and in a manner designed to obtain a prompt, inexpensive and fair resolution. It appears that DAI is trying to avoid having the Connecticut courts review DAI's actions on their merits and is instead waging a very personal war of attrition against selected individual Franchisees.

DAI's litigation tactic is a classic "divide and conquer" strategy. It is designed to maximize the cost to NAASF and to you in seeking a fair and prompt resolution on the merits of the issues that DAI created with its new contract (these costs are trivial to DAI and its owners’ economic resources).

It appears that DAI's strategy is to drain NAASF financially. If DAI is successful, DAI won't have to defend itself against NAASF's forthright challenge to DAI's actions against SFAFT and against your rights as Subway Franchisees. We are also aware of other steps that DAI has taken in the last few weeks designed to eliminate NAASF, and to interfere with or defeat our ability to represent the Franchisees. DAI is interfering with NAASF's ability to represent your fundamental rights and interests as members of the Subway system, and to provide independent information, training, conferences and other services to you - the NAASF member!

We ask that, now more than ever, you continue to support NAASF with your ideas, your volunteer effort and your contributions to the NAASF Legal Support Fund. Every dollar helps, especially when our opponent has such deep pockets. You can do so online at http://rs6.net/tn.jsp?t=vf4bvxbab.0.ovrmvxbab.7w548obab.581&ts=S0197&p=http%3A%2F%2Fwww.naasf.org%2Fpage.cfm%3Fpageid%3D1367. We also invite your (constructive) criticism. You can reach the elected leadership of NAASF at mailto:info@naasf.org

We need to BE united to STAY united. We can restore the economic vitality of Subway if we do that. If we do not stand united, we are allowing ourselves to be bullied and allowing our contract rights to be taken from us."

Best of luck in fighting a corporation with a virtual botomless well of funds and access to any lawyer.

Take Care,

Egil


5 Comments:

Blogger subwayuk said...

Take alook at my blog...

www.subwayuk.blogspot.com

A view of the Subway World in the UK.

Let me know your thoughts....

4:35 AM  
Blogger Rajnish said...

Hi Egil,
I am Mini and I am a Subway Franchisee in California, USA. I would like to contact to you because I am in the same postion. Please email me so we can discuss this matter further.
Thanks, Mini

11:36 PM  
Blogger Brett said...

I am no Subway franchise holder, but I strongly feel that if this dispute between NAASF and DAI continues, franchise owners will land in deep trouble. Hope it gets solved effectively and quickly.

8:14 AM  
Blogger chirstmas said...

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4:29 AM  
Blogger Jake Shardul said...

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9:19 AM  

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