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Subway's SVP Marketing Steps Away after 8 Months

Subway Ala Moana​Karlin Linhardt, Subway's senior vice president of marketing for North America, has tendered his resignation after just eight months on the job. His departure comes as the chain continues to face hard times, as it did before he came on board. The company has lost 25 percent of its customer traffic over the last five years and way too many franchisees are said to be losing money. On top of that, over 400 franchisees have signed a petition opposing the chain's decision to promote a $4.99 footlong sale starting in January, with each sandwich sold at a loss for many of them. The franchisor makes money off those same sandwiches that lose money for the franchisee because it collects royalties on gross sales—whether or not the franchisee is making a profit.

“Most franchisees are not fans of Karlin,” a franchisee organizer told The [New York] Post.

Linhardt's departure was swift. “Karlin Linhardt is no longer at the company as of today,” a person answering the phone at Subway HQ [on Monday] told the New York Post.

Perhaps, half of Subway’s 40,000 stores presently are losing money, the franchisee organizer told The Post.

Subway was holding regional meetings this month with franchisees trying to get them to support the promotion that would further shave their already thin profits. — Josh Kosman, New York Post

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