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How would you rank a Subway sandwich franchise agreement?

Your observations are general, simplistic business observations. I hope you were more specific on your legal document analysis on why the franchise agreement was way out of the norm in its traps and franchisee constrictions compared to other franchise opportunities. Care to share any specifics of the contract that you felt were out of the norm?

With due respect, your legal client would give little preference to your business views. After all, I assume you are a lawyer not a business architect.

Just out of curiosity, how would you rank a Subway sandwich franchise agreement?

Businessweek on Franchising

Interesting post, John.

Indeed there are many things to consider when comparing restaurant businesses. I do the legal document analysis, and I remember panning Quizno's when I first saw the document package around 2000. I recall they had grown from 1,500 restaurants to 3,000 restaurants IN THE PREVIOUS YEAR. Hard to imagine anyone could handle that without growth pains. Can you imagine a franchisee looking for guidance from someone at corporate and finding only either vastly overworked people, or people who were just recently hired and still learning their jobs? They also had a tendency to charge fees (and high ones!) for every single thing they provided. By comparison it looked like Subway franchisees were operating for free. I loved the sandwiches but hated the franchise as an investment.

My client bought the franchise despite my negative review and was out of business three years later.