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Declining sales of Subway sandwich chain franchises and lower franchise profits in 2015 following overexpansion

08/14/2015

Subway's was founded by Doctor's Inc. and has a unique system that gives territory to individuals who then get a share of fees for new franchises. The cost of opening a location is much smaller than McDonald's, the training much shorter and the locations small. This incentivizes expansion, unlike McDonalds and other food stores. The reason McDonalds and other chains own part of the franchise store is to maintain quality at stores. Perceptions of food quality is slipping according to this report in the WSJ.

Grouped Articles

Subway’s Salad Days Are Past

Wall Street Journal 08.14.2015

It Will Take More Than Breakfast to Perk Up McDonald’s

Wall Street Journal 10.22.2015


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