The North American Association of SUBWAY Franchisees, Inc. (NAASF), acting on behalf of more than 14,500 SUBWAY® restaurants in North America, today announced it has filed suit against Doctor’s Associates Inc. (DAI), the franchisor of the quick-service restaurant chain.NAASF’s lawsuit, filed today in Connecticut Superior Court in New Haven, Conn., seeks to prevent DAI from violating the established rights of Subway franchisees to transfer and renew their franchises under the terms of their franchise agreements, and to prevent DAI from depriving franchisees, who are the beneficiaries of the Subway Franchisee Advertising Fund Trust (”SFAFT”), of the benefits of their independent national advertising program, guaranteed to them under a 1990 Trust Agreement signed by their franchisor and the Trustees of SFAFT. Under the provisions of the Trust Agreement, Trustees elected by franchisees control the advertising program, which also is funded by franchisees.
The NAASF lawsuit comes on the heels of another suit filed against DAI June 26 by the Subway Franchisee Advertising Fund Trust (SFAFT). That suit seeks to block SUBWAY founder Fred DeLuca and DAI from violating the terms of the SFAFT Trust Agreement by improperly attempting to usurp control of the national advertising program from the franchisee-elected Trustees, to whom DAI gave complete stewardship of the program in the 1990 Trust Agreement.
naask lover on July 25th, 2006 at 4:54 am
thank god. there will be many more suits tome. dont buy dont buy