Overview

• Subway is making it mandatory for all franchisees to honor digital deals and promotions, effective from December 28, 2023.
• The move comes as Subway's sale to private equity firm Roark Capital, owner of Jimmy John's, is reportedly under review by the Federal Trade Commission (FTC).
• Previously, franchisees could opt out of promotions, but the new policy could undermine Subway's argument that all store operators are independent.
• Franchisees have expressed concern over the mandatory promotions, citing thin profit margins and the potential for financial jeopardy.
• The FTC's investigation is focused on whether the addition of Subway to Roark's portfolio, which includes Arby's and Jimmy John's, would create a sandwich shop monopoly.