Massive Rebellion at Subway

MILFORD,CT - Acting for more than 10,000 of a total of 26,000 SUBWAY franchise owners, the Subway Franchisee Advertising Fund Trust (SFAFT) announced that it has filed a lawsuit to prevent SUBWAY (Doctor's Associates, Inc.) from implementing a new franchise agreement that breaks the terms of the old Trust Agreement.

SFAFT's lawsuit seeks to block SUBWAY founder Fred Deluca and his company from undermining the control and protection that owners currently have over where their advertising and marketing dollars are spent.

"While we respect our founder's vision, and regret the need to resort to legal action," said Tom Seddon, chief executive officer, SFAFT.

"Fred DeLuca had it right when he agreed to the current trust structure -- a structure that has helped propel the brand to unprecedented levels of growth and success," said Seddon. "As an entrepreneur himself, Fred recognized the importance of empowering the small-business owners of SUBWAY franchises with control over advertising and marketing programs. Unfortunately, for reasons that are not clear, Fred has now decided he wants to change this proven formula and unilaterally assume control -- 16 years after his original agreement with franchisees. At a time of record sales and growth, we do not know why Fred would want to do this now.""