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Re: Subway Store Closures

It doesn't work that way. First, the discussion was using numbers for the U.S., not its global numbers. You cited its global numbers. Second, even if Subway had 467 U.S. stores shutter their doors, that does not mean that Subway is down by a net 467 in the U.S.. There were new Subway stores that also opened so far this year, which would bring the net decrease in sandwich shops to a smaller amount. Third, you speculate that the closure pace will continue to be uniform for the rest of the year. That's seldom the case. Fourth, you say that Subway closed its stores. Subway did no such thing. It has no stores of its own for it to close.

Subway Store Closures

Subway started the year 2018 with 44099 and it has already closed 467 stores so far this year, so if it continues throughout the rest of this year, it will end up closing over 1200 stores!

If Subway keeps this up it will be gone in a 100 yrs

Terrible. If Subway has a net loss of 450 stores every single year, then in a hundred years it will be completely gone.

Quiznos 2.0!? Different

Quiznos 2.0!?

Different cause/s same outcome...

Janet Sparks's picture

Subway FDD Highlights

Subway FDD (Franchise Disclosure Document): Doctor’s Associates Inc. (DAI), April 27, 2018

Doctor’s Associates Inc. (DAI), originally incorporated in October 1967, was moved from Connecticut to Florida on July 1, 1991. Its headquarters is in Miami Springs. The FDD states that as of December 31, 2016, the franchisor had sold 38,503 franchises, of which 26,774 are open and 374 are in development. Subway IP Inc. (SIP), a Delaware corporation incorporated on December 14, 2015, also located in Miami Springs, Florida, is the parent company of DAI. DAI is no longer the owner and licensor of Subway trademark, and all of its operations. SIP acquired all ownership interest in DIA. SIP has never offered franchises in any line of business.

Subway Franchisee Advertising Fund Trust Ltd. (SFAFT), a trust established in Connecticut by its Settlor, Doctor’s Associates Inc., as of November 14, 1990, and is headquartered in Milford, Connecticut, DAI’s former headquarters. SFAFT provides advertising services to Subway franchisees, administers advertising contributions paid by franchisees in the U.S. and its territories. It also interacts with local advertising fund entities around the world that are associated with the Subway brand. 

Officers of Subway Franchising include:

Dr. Peter Buck (Subway co-founder) has served as director of DAI since its incorporation in October 1967.

Suzanne Greco (sister of the late co-founder Fred DeLuca) is president of Franchise World Headquarters, and CEO, president and director of DAI. She is also president of Subway’s parent company Subway IP, Inc. (SIP).

Liz DeLuca (sister of co-founder Fred Deluca) serves as a director of DAI and of the Frederick A. DeLuca Foundation.

Jonathan DeLuca is a director of DAI; director and secretary of SIP. He also serves as president of the Peter and Lucia Buck Foundation. Mr. DeLuca has served as director of DAI since October 2015. He has served as director and secretary of parent, SIP, since December 2015. He has also served as an investment consultant for Rockridge Capital, LLC since January 2009.

Donald G. Fertman is chief Development Officer of Franchise World Headquarters 

Litigation EXHIBIT L [54 pages of litigation]

Other than these 101 actions and the 693 franchisor-initiated actions disclosed in Exhibit L, no other litigation is required to be disclosed in this Item. We estimate that the franchisees we or our affiliates filed actions against in connection with the franchise relationship constitute about 2% of the franchisees operating SUBWAY® restaurants globally.


Development Agents are franchise brokers.  We have engaged Development Agents whose duties include franchise sales, site location assistance, training, and operational assistance to franchisees.  Development Agents also make recommendations as to whether prospective franchisees in their territories should be granted franchises and we take their recommendations into consideration.  We generally recruit Development Agents from existing franchisees.  We pay Development Agents a portion of amounts we collect from franchisees as payment for their services, including approximately one-half of the initial franchise fee, and up to one-third of royalties, transfer fees and extension fees.  We also pay them approximately one-third of any fees we receive from a thir- party franchisor under the SUBWAY® Plus Program and any co-brand continuing fees, if they provide services for the other concept.  We may also pay them bonuses and penalize them depending upon whether they are ahead or behind their development schedules for establishing restaurants in their areas.  We prohibit Development Agents from making any representations of sales or profits to you.  Additionally, we require Development Agents to abide by all federal and state laws in the performance of their duties.  Development Agents are independent contractors and not employees of ours or our affiliates.  Development Agents may be independently elected to the board of independent franchisee organizations such as the IPC.  We and and our affiliates disclaim responsibility for any acts or statements made by Development Agents contrary or in addition to the disclosures made in this Disclosure Document, or in the Franchise Agreement, the Operations Manual, or related contracts.

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