Subway hits franchisees with new store closure rules
By Josh Kosman, New York Post
June 7, 2021
Subway Restaurant store owners are seeing red over onerous new rules they say could require them to keep their doors open even during a snowstorm, electrical outage or terrorist attack.
Subway stores that close more than once a year without permission barring an act of God a strict legal term that tends to include only the most severe of natural disasters risk being taken over by the Milford, Conn., company headed by ex-Burger King CEO John Chidsey, sources said.
The restaurant chain which grew to popularity with its $5 footlongs is allegedly making these and other new demands via new 20-year contracts it started handing out last month.
Franchisees who choose not to agree to sign their stores in the event of a non-qualifying emergency away will be required to fork over 10 percent of their gross revenues to headquarters, sources said...