Franchise operators sue Subway

Franchise operators sue Subway
Tags: Franchising & Growth, Legal Issues, Policy / Legislation, Sandwich
June 26, 2006

Reuters: Worldwide franchisees of Subway sandwich shops filed suit against the chain's founder Fred DeLuca and the franchisor Doctor's Associates Inc. on June 26, claiming that terms of a new franchise agreement disregard existing commitments concerning marketing spending. The lawsuit was filed in Connecticut Superior Court in Ansonia-New Haven by the Subway Franchisee Advertising Fund Trust, which was set up in 1990 to oversee and control how advertising contributions from franchisees are spent.

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