Subway Reaches $645k Settlement with California Counties

The Subway Franchisee Advertising Fund Trust and Subway sandwich chain (Doctors Associates Inc.) have reached a $645,000 settlement with three California counties for false advertising and overcharging.

Robert Nichols, a Marin County consumer protection prosecutor, says Subway was not granting customers advertised discounts on food, often by not clearly disclosing restrictions on advertised discount promotions. . . The civil action was joined by Sonoma and Santa Cruz Counties and filed against Subway franchisor Doctors Associates Inc. and the Subway Franchisee Advertising Fund Trust.