• Report: #669652

Complaint Review: Subway

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  • Submitted: Wed, December 08, 2010
  • Updated: Thu, December 09, 2010

  • Reported By: Beaten — Internet United States of America
Subway
Internet United States of America

Subway Illegal & Shady Practices... Internet

*Consumer Suggestion: Always get a GOOD lawyer for these matters!

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WOW... I wish I knew about this site before purchasing my own franchise.  I recently lost my franchise due to shady practices of Subway... it all started my 2nd year of owning the location... I was audited and of course there was a descrepency.  I provided document after document of paer plus letters from the landlord, accountant and other tenants as to the poor business we all were encountering.  I also asked Subway to come to my location and video or see it for themselves as to the business being non-existent.  never happened!!  So for the next 2 yrs me and Subway were still fighting out this Audit where they were accessing me $31k in fees and royalties for said audit.  I started recieving out of compliance shops fromn the D.A. yet had no porblem whatsoever with the health inspector.  They finlayy pushed for eviction and won... then went to arbitration against me for the audit amount and to terminate my franchise agreement.. and guess what ... they WON.  I was told to sell my location so i had several people lined up and had been told by my D.A. that he wanted me to sell to an "Indian" because they do what they are told and not to sell to the caucasian nor the hispanic people I had also interested or he wouldnt allow my sale to go through. I was aksed to keep him in the loop with the purchaser and details.. after we had squared all the details up me and the purchaser had set a date to sign the sales contract.  On the day we met to sign the "purchaser" tells me he is backing out of the deal , because Subway approached him and stated if he didnt buy from me they would give him the location for pennies on the dollar, and just like that the store was then taken from me and the sale was dead.  I have not seen any penny yet from anything.  I paid over $230k for my location and supposedly they gave it to him for $25k.  They have broken and bent many clauses in the franchise agreement yet seem untouchable.  The agrteement even states if they happen to buy back a location from an owner it will be at "fair market value" , yet it went to the guy who i was working with and had agreed on a price with for 1/8th our price.  Many other owners were willing to pay 5times as much yet werent given the chance, nor was it posted on their site as a store for sale when i was selling it... I am now seeking to sue them for interference but have been told I must face Arbitration because the franchise agreement states any argument must be done that way, even though I live states away.  Another thing for them to win i'm sure.. as for the Arbitrators are also "biased".


Americans need to know that Subway is not the American Dream nor an American establishment... it is nothing but corruption and I wish there was a way to do a Class Action Suit against their practices and illegal methods of "stealing and breaking the law".


If there is an attorney out there that reads this and is seeking such a thing.. please contact me.. as I would be all for it!! 


This report was posted on Ripoff Report on 12/08/2010 09:40 PM and is a permanent record located here: http://www.ripoffreport.com/r/Subway/internet/Subway-Illegal-Shady-Practices-Internet-669652. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 Consumer Suggestion

Always get a GOOD lawyer for these matters!

AUTHOR: Steve - (U.S.A.)

It appears that you attempted to deal with these people on your own, and as a result, lost everything.

ALWAYS get a GOOD lawyer when dealing with situations like these. A good franchise attorney would have shut them down at the start, and they would be paying you, as long as you were not the one who defaulted on the franchise agreement.

I don't know whay anyone would buy into a franchise nowadays anyway. Too much money for them, too little for you.

You should open your own sandwich shop as close to that location as you can to force it out. Just offer everything they don't! be creative. Offer longer hours, offer delivery, or just make a better product!

Subway sucks! I wouldn't eat that crap if you paid me. And, its overpriced in this economy.

Get an attorney right away!

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