To Questions Commonly Asked By Subway
Q: I just received a bad evaluation of my
Subway™ Restaurant, should I worry?
A: Perhaps. Every year Doctor’s
Associates, Inc. (“DAI”) terminates a lot of
subway franchises. In most
cases, the termination process starts after a
series of evaluations that show the franchise is
out of compliance. Obviously, some
forms of non-compliance are more problematic than
others. After you get a bad evaluation of
your store, try to resolve all the
issues. If you continue to get
negative evaluations, it is probably time to
Q: I was marked out of compliance for
something that was previously acceptable.
What should I do?
A: Speak with your field consultant.
If you can correct the issue during the visit
suggest that the item be marked in compliance or
just marked with a warning.
Q: I haven’t changed how I run by Subway™
Restaurant, isn’t that good enough?
A: No. From time to time, Doctor’s
Associates, Inc. will make changes to what it
expects from Subway™ franchisees. Further,
changes at the DA or changes in the field
consultant may change how your store is evaluated.
Q: I just received a letter warning me
that my store was out of compliance. What
should I do next?
A: There are two things that we recommend
that franchisees do when they receive a notice of
alleged non-compliance. First: We
recommend that you speak with your
lawyer. If your lawyer is not familiar
with the process by which your franchise is
evaluated, the process by which evaluations
trigger warnings and the process by which warnings
trigger terminatinos, we recommend that you or
your lawyer contact a lawyer in Connecticut
familiar with the process by which Doctor’s
Associates, Inc. terminates
franchises. DAI has a team of
lawyers and para-professionals who work on the
process of terminating Subway franchises, you
should also have representation.
Q: I just received a termination
notice. What should I do next?
A: The first thing you should do is speak
with your attorney. A termination
notice is the beginning of the legal process
by which Doctor’s Associates, Inc. seeks to take a
franchise away from a franchisee. As we said
above, DAI has a team of lawyers and
para-professionals who work on the process of
terminating Subway franchises, you should also
Q: I received a termination notice, but
Doctor’s Associates, Inc. has offered me an
interim arbitration agreement that will give me
time to solve the problems, should I sign
A: Not without first speaking with an
attorney who has experience with negotiating these
agreements and arbitrating and/or litigation
alleged violations of these interim
awards. Doctor’s Associates has often
asks Subway™ Restaurant franchisees to sign
probation agreements and/or an interim awards that
contains language that waives substantial
rights. We recommend that Subway™
franchisees not sign any probation agreement or
interim award without first speaking with a
Connecticut attorney with substantial
experience with these agreements.
Q: What’s wrong with signing an interim
arbitration award to avoid the cost and expense
A: There is nothing wrong with the
concept. The problem can be with the
language of the agreement. For
example: The standard franchise agreement
may allow DAI to terminate a franchise if the
franchisee is “out of compliance,” but the
interim award may allow DAI to terminate the
franchise if the franchisee is “marked out of
compliance.” Under the franchise agreement
language to terminate the franchise, DAI would
need to prove that the franchise was actually out
of compliance. Under the language commonly
used in the interim award, DAI would only need to
prove that the franchisee was “marked out of
compliance.” This is just one example of
substantial rights that can be lost with the
change of a word or two.
Call (860) 249-0090 or use this
form to request that we contact you.
NOTE: Subway™ is a registered trademark of Doctors
Associates, Inc. The author is not
affiliated with Doctors Associates, Inc.,
Franchise Word Headquarters, Subway Real Estate,
LLC or any other entity related to the franchisor
of Subway™ Restaurants.