Subway Mandates Digital Deals for Franchisees Amid FTC Review of Sale

Franchisees express concern over mandatory promotions as FTC investigates potential sandwich shop monopoly.

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.