Subway Sued Over $400 Mil. Ad Fund

  • July 21, 2006
A group of franchisees representing 14,560 Subway restaurants' operators have launched a legal battle against Subway's parent company over how its $400 million-plus ad budget is controlled. The lawsuit was filed Tuesday in Connecticut Superior Court in New Haven. The lawsuit accuses Doctor's Associates, Inc. (DAI) of backing a new agreement that gives Subway more control of ad funds that franchises pay into a trust. The suit seeks to rescind all franchisee agreements and replace the current agreement with one that doesn't give DAI further control over ad spending.

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