Subway

Subway Restaurant Owners Allege Widespread Sabotage by Franchise Agents | Eater

"Dozens of U.S. franchisees and former inspectors accuse the world’s largest fast-food chain of systematically mismanaging franchise agreements, alleging that corporate incentives pushed regional development agents to rig store inspections at profitable locations and seize or force closures of stores. The chain — operating about 24,223 U.S. restaurants, many run by immigrants — expanded aggressively under co-founder Fred DeLuca until 2015; after a PR crisis tied to longtime spokesperson Jared Fogle and DeLuca’s death, new leadership began reducing store count and has closed thousands since 2016. Franchisees report repeated citations for trivial infractions (handprints on windows, cucumbers sliced too thick) and describe more serious alleged sabotage, including an inspector puncturing a meatball storage bag with a thermometer to create a false temperature reading; former field consultant Rebecca Husler called her role a “hit man,” alleging development agent Chirayu Patel encouraged selective enforcement and took over targeted restaurants. Critics point to a structural conflict of interest because development-agent roles are often filled by other franchisees, and although litigation has increased, few owners have prevailed; observers say the company’s private ownership and limited FTC oversight make franchise risks hard to evaluate and that addressing internal governance would do more for reputation than marketing campaigns." - Brenna Houck