Subway Terminates Franchise Owner for Lewd Marketing

THE BRONX (Blue MauMau) - A disgruntled Subway franchise owner, who was terminated earlier this month, has moved his sandwich shop and will now offer foot longs in the front and hardcore nude lap dances in the back.

In a brochure circulated around Westchester Square to attract new customers, Subway ex-franchise owner, Anthony “Vinny” Agnello invites customers to a subway sandwich and a lap dance. He explains in the flier,"This was a Subway franchise up until May 2008 when we were disenfranchised due to politics and differences of opinion as far as marketing is concerned."

Cousin Vinny admits he isn't much for following Subway Sandwich rules

Agnello markets the contrast of the Subway brand's diurnal wholesomeness with the naughtiness of nocturnal nude lap dancing. "At 10 PM Wednesday through Saturday this seemingly harmless sub shop becomes the wildly, exotic and explicit, all nude private club, 'Cousin Vinny's Little Secret',” he writes in the flier.

When asked for the specifics of why he was terminated as a franchise operator, Agnello told Blue MauMau, “I cannot follow Subway rules. I've been running women for f***ing 16 years. I can't listen and follow instructions.”

The ability to follow operating manuals and marketing instructions to a tee is considered highly important in operating a franchise because customers expect a uniform service and look.

Vinny Agnello has a checkered history. In 2001 his firm, Gorgeous Stripper Plus, provided a 31-year-old woman to strip for a group of under-aged high school boys in the affluent town of Chappaqua. In October of 2003, Vinny was arrested and charged with prostituting a 17-year-old girl to have intercourse with male customers. In 2004, he was busted for arranging two prostitutes to have sex with a john.

He has been on various national news media like CNN, Fox News and others, ridiculing his detractors as being sexually repressed and hypocritical.

But in 2007, Agnello says, “I tried to go legit.”

When the costs of running an exotic dance business rocketed upwards, Vinny decided that the economies of scale that a franchise could provide in keeping purchasing costs down was an answer that an independent business could not compete with. He just needed to decide what franchise chain best fit him.

Vinny states, “The last time I had a legitimate job was when I was 19 at a Subway restaurant in Danbury, Connecticut. [I thought] wouldn't that be nostalgic. I'll buy a Subway."

And that he did. According to Vinny, he had enough money that he had saved from his strip dancing and escort services.

Mr. Agnello describes how Doctor's Associates Inc., the company who operates the Subway chain of some 29,355 sub shops in 86 countries, failed to investigate his business background or criminal record. “Imagine that a guy like me can sneak into Corporate America,” he says. “I have an arrest record that stretches from here to Timbuktu."

All went well until the end of his initial training session last year. Caught up in the spirit of graduating at a cocktail party, Vinny says he passed out business cards of his strippers for the enjoyment of his classmates and Doctor's Associates staff. He notes that the Subway sandwich chain's CEO, Mr. Fred DeLuca was in attendance.

“The next day they said it was a moral violation and they escorted me off the grounds,” says Mr. Agnello. According to him, Doctor's Associates, Inc. relented. He could be an owner-operator if he signed a morals agreement. Firms require the signing of a morals agreement or clause to strengthen termination when they anticipate that a franchise owner could cause public embarrassment to the firm.

Vinny states he was specifically instructed to not promote strip clubs or lewd services at a Subway restaurant or function.

This year a representative of the company visited Vinny's Subway restaurant in May. His restaurant walls had posters of sex dolls, nude dancing services and memorabilia of Mr. Agnello's own colorful media history. At first he was given a 60-day cure period to fix the violations of store operating standards but according to him, the legal department decided to promptly terminate his franchise agreement instead.

Vinny feels that he is protected from retribution from the Subway chain since the company thought he signed a morals agreement but he actually did not. “The district representative never made me sign any such morals agreement,” he adds.

Agnello confirmed that the letter printed in gossip blogsite Gawker was the actual wording of his brochure to announce his new business. The flier concludes, "Cannot remember our phone number? Simply call information for the number to the Subway Restaurant on East Tremont Avenue in the Bronx! Hope to see you soon!"

Despite his abrupt termination as a franchise owner, Vinny is hopeful he will come out on top. “Subway has me in arbitration but they are going to lose,” says Vinny with confidence.

UPDATE: A spokesperson for Doctor's Associates, Inc. on Monday, June 2 told Blue MauMau that they could not comment on this story as the case is in arbitration.

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Cousin Vinny's Subway and MISINFORMATION LEAKED BY DOCTOR'S ASSO

First of all there were no pictures of love dolls or sex toys or anything resembling such filfth at Cousin Vinny’s Subway Restaurant. The only thing that could in anyway be considered offensive was a poster sized version of the Diggs-Celebrity-Website story on Cousin Vinny Agnello. The headline of the story originally printed in all the Gannette Newspapers across the country was, “SEX SELLS AND VINCENT “COUSIN VINNY” AGNELLO KNOWS IT! The blurb featured stated that Cousin Vinny had enough bling to anchor a battleship and a long arrest record etc. If it was featured in the newspaper–how offensive could it be? Second of all he had pictures featuring him and numerous celebrities that he obviously knew and hung out with during his days as a bit part soap opera and movie actor and when he was the star stripper for many infamous male stripping reviews in the 1980’s. Also posted on his wall was a SUPER TEEN MAGAZINE story from 1988 featuring Mr. Agnello AKA COUSIN VINNY with such big celebs as Seth Green and Danny Nucci–it was something called, “HEAVENLY HUNKS”. What is so offensive about that? I have been to many restaurants/ famous restaurants that posted pictures of the owners with numerous celebrity patrons–would SUBWAY RESTAURANTS demand removal of photos with Michael J. Fox? Get a grip. Doctor’s Associates obviously breached their franchise agreement with Mr. Agnello AKA COUSIN VINNY. He was entitled to 60 days to get into compliance and he wasn’t given any opportunity to make changes and get in line so no wonder he decided to get even down the street at the new restaurant and use SUBWAY’s phone number.
It’s alraight for Goliath to kick David but they can’t take it when David kicks back.
I am sure you will be reading about Subway being sued by Cousin Vinny and Cousin Vinny being awarded a large settlement. All Doctor’s Associates had to do was wait out the 60 days and Cousin Vinny may have failed to remedy the violations and then they could have legally terminated his franchise agreement but their impatience caused them to do an illegal act to Cousin Vinny. Mr. Deluca and his representatives didn’t live by mother’s advice. Remember? PATIENCE IS A VIRTUE!

Does Subway accept anyone with money and a pulse?

This story brings out all sorts of serious issues. Does Subway just take money to sell their stores from whomever has it, no questions asked?

If I were a Subway franchise owner, I would be concerned about what sort of fellow owner works up the street from me and what their criminal background is. Imagine the horrors of an owner money laundering for the mob or some terrorist organization. I would also be concerned about the difficulties such loose application policies have on the brand.

Subway franchisee screening

While Darnelle raises a good point, in the case of Subway Sandwiches my experience has been that they have considerably tightened their screening since I was a franchisee of that system.

In fact, I deal with a number of Subway franchisees in the Bronx and on several occasions deals have been delayed when DAI demanded that the new franchisee's accountant provide background financial information as to the source of purchase money funds. There was also an incident a few years ago in Manhattan where a new franchisee was rejected when there were indications as to the prospect's involvement with overseas persons with...shall we say, "семья" (family) in Russia.

In addition, there is actually a question on the DAI questionaire as to whether you are involved with terrorist organizations (seriously!) and a provision that affiliation will result in franchise termination.

This whole issue of using a franchise to launder money is way overblown. By the time you get done with taxes, ad fund, and royalty payment it normally does not make sense.

Traditionally, the best ways to launder money have been thru grocery stores, jewelry stores, and the like.

I believe there was a chicken franchise in Brooklyn alleged to have been used for laundering a few years back, but I don't know how credible that report turned out to be.

I don't know the story in this specific case, but in general I don't think Subway franchisees have much to worry about. 1 out of 29,000 franchisees being a goombah is not a trend.

BTW: Even the US government seems to be having trouble with basic security screening--with sensitive positions, no less: article online

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400

This certainly gives new meaning...

to "five dollar footlong".......

Another dimension of Paul that we didn't know about.

YEA Paul!!!

Houston is home to The Men's Club, a lap dance to die for, buffet and good drinks. The model is so successful that it went public several years ago and is still traded on NASDAQ.--

I have neither need nor desire to go there, but I have been there twice - once for a biker buddy's birthday party, and once with a group of out of town clients who insisted on going there because they had heard about it.

The clients were a liaison committee in a multi client franchise group. They had ponied up a $ 400,000 retainer, and expected entertainment. So I took them where they wanted to go. Once the "girls" (who were all knee walking pretty) figured out who was the "host" I got better "treatment" that anyone else. In about a half hour a manager came by and asked to begin another check, as we had already run up $ 7,500 on my card. At $ 15,000 I decided that enough was enough.

One of the guys who was a real blue nose, and who had the time of his life, went home and told his old lady about the awful degenerate lawyer who took them to a strip club. She brought it up to me and said she had better not see that on their bill. I reassured her that it would never be on their bill, in any form, and went on to explain to her that it was her husband who suggested it  and that he had the best time of anyone other than me.

He was then replaced on the committee by his wife. who was a lot of fun, recording every meeting we had and bringing a list of dozens of questions for me every time. But I never again had to take anyone to a strip club.

I understand DE Luca's being averse to creative marketing. But Paul's questions about length and double meat and cheese are the funniest comments I have ever seen in here. Thanks.

Richard Solomon, FranchiseRemedies.com,  has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School

Richard Solomon Slept Here

I was in Houston today and had some time to kill before my flight...decided to swing on by "The Men's Club" and was suprised to find this in the parking lot...

 

 

 

 

Sure, Richard...just visited a few times... ;-)

If I'd have known that,

I'd have invited you over.--

Richard Solomon, FranchiseRemedies.com,  has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School

Congratulations Paul...

You managed to make strippers and lap dances boring.  Further proof that accountants and lawyers are the best cure for insomnia and other sleep disorders along with lowering the ole blood pressure.

A new way...

To get F**CKED in franchising.

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