Unformatted text preview: Richard Adams, a former
McDonald’s franchisee, because its members are reluctant to disclose their names.
The fast food chains are periodically sued by franchisees who are upset about encroachment, about inflated prices charged by suppliers,
about bankruptcies and terminations that seemed unfair. During the 1990s, Subway was involved in more legal disputes with franchisees
than any other chain — more than Burger King, KFC, McDonald’s, Pizza Hut, Taco Bell, and Wendy’s combined. Dean Sager, a former staff
economist for the U.S. House of Representatives’ Small Business Committee, has called Subway the “worst” franchise in America. “Subway is
the biggest problem in franchising,” Sager told Fortune magazine in 1998, “and emerges as one of the key examples of every [franchise]
abuse you can think of.”
Subway was founded in 1965 by Frederick DeLuca, who borrowed $1,000 from a family friend to open a sandwich shop in Bridgeport,
Connecticut. DeLuca was seventeen at the time. Today Subway has a...
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- Spring '08