Subway Restaurant Owners Allege Franchise Agents Abused System to Close Competing Stores

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Subway Restaurant Owners Allege Franchise Agents Abused System to Close Competing Stores
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Franchise agents docked restaurants’ points for minor issues like too-thick cucumber slices and handprints on the windows

Despite claims by Subway that the focus was on eliminating underperforming stores, multiple franchisees tell thethat they lost ownership of profitable restaurants. Franchisees describe situations in which they were repeatedly cited by Subway franchise inspectors for minor violations such as handprints on windows and cucumbers sliced too thick. In one case, a franchisee alleges an inspector purposefully punctured a meatball storage bag with a thermometer to get a false temperature reading.

Several former inspectors, known as field consultants, corroborated the allegations. One former inspector Rebecca Husler worked for a development agent named Chirayu Patel, who oversaw parts of California and Nevada. Husler described her role as a “hit man,” alleging that she was encouraged by Patel to find violations at particular stores while ignoring violations at his own stores.

The system has led to increased litigation between franchisees and Subway, though few store owners have been successful in proving their claims. Meanwhile, the privately owned company’s lack of transparency and limited Federal Trade Commission regulations make it difficult for prospective franchisees to adequately evaluate their investment in Subway franchises.about the beauty of their sandwiches and more on their broken internal system.

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