Thursday, July 20, 2006

Now this is just unseemly

Subway franchisees sue the parent company over ad funds. Is it really a matter of money? Or do they just want to eliminate Lovitz?


Make the logo bigger said...

Cheat Fresh!

Davis Freeberg said...

I can't imagine that there are many franchisee's that are pleased with Subway. In downtown San Francisco, they've licensed their stores to anyone and there are more subways next to each then there are Starbucks in Seattle. Seems all Subway cares about is the franchise fee and if you have to compete with someone a block away with the same store, that's your problem. I've talked to the franchise owners before and they are pretty upset about this. Wouldn't surprise me if the suit stems more from bad blood then anything else.

Make the logo bigger said...
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Make the logo bigger said...

I can say with almost 99.99999% authenticity, that I ate at the first subway, (having grown up literally next to it in CT), so I had no choice. Back when they were .99¢ too, no lie.

But, one of the the things they do, along with other fast-food chains, is lure potential owners in with studies showing how lucrative the potential area is where they will be breaking ground.

They say there won't be any new units going up nearby, so people sign on. FF >> to a year later and then a BK, Wendy's and another Subway open a mile away and siphon off some of the traffic.

Problem is FF chains think people want a drive-thru on every corner, almost like the model for Starbucks. That works for coffee but it's overkill for meals.

But what do I know. I’m just a blogger.

Irene Done said...

Interesting. If I remember correctly, Subway fired Goodby and their own CMO last summer, and part of the controversy involved the use of Jared. It seemed that franchisees love -- LOVE -- Jared, claiming that sales went up like 10% whenever a new Jared spot ran. They couldn't get enough of those big jeans! So I think there might be a history of contentiousness where ad direction is concerned and along with all these other issues y'all bring up, the situation seems to have been going to hell for quite some time.

And yeah, I just said "y'all." That's how we blog in Dallas.

HighJive said...

i feel like suing subway for the advertising they run — it's brought me a great deal of emotional distress.

on a side note, someone once claimed subway meats are just a day or so away from their expiration date. if that's true, the "eat fresh" tagline is pretty suspect too.