Subway has ordered some franchisees to spend as much as $100,000 on remodeling their sandwich shops as the company scrambles to sell itself — and is threatening to take away their stores if they don’t comply, The Post has learned.has faced a lackluster response as it attempts to auction the chain for $10 billion
The idea, according to sources, is force smaller franchisees to bankroll a massive overhaul of the aging chain’s increasingly dilapidated store fleet as bigger franchisees and prospective buyers alike have lately balked at the potential costs of such a revamp. Seven years ago, former CEO Suzanne Greco announced a chainwide renovation initiative called “Fresh Forward” that called for upgrading stores with new furniture, reconfigured service areas, drink stations and point-of-sale systems.
“If you do not comply Doctor’s Associates will terminate the franchise agreement,” Hidalgo added, noting the 120-day deadline. “Time is of the essence in response to this notice.” Nevertheless, the timing is painful for smaller franchisees who don’t have large amounts of cash lying around, and who would be forced to take out construction loans at stiff interest rates to get the work done.