As Subway Restaurants franchise owners await word on a possible auction of the sandwich giant, a California woman who sued Subway has asked a court to finish her lawsuit that alleges the corporate employed false promoting of its tuna sandwich.
Subway opposes the girl’s motion partially because it will allow her to sue again at one other time. She said she could now not proceed the case now due to severe morning sickness and “debilitating” conditions of her pregnancy as she expects a 3rd child.
Subway wants the judge to dismiss the case and force the girl’s lawyers to pay a minimum of $618,000 of the corporate’s legal bills, according to Reuters.
The tuna lawsuit turns amid Subway’s efforts to seek out a buyer for the corporate. Little has been made public concerning the potential auction, but what news has leaked has not been encouraging for Subway.
What’s the Average Income of a Subway Franchise Owner?
The Latest York Post reported in April that Subway has been forced to regulate bidding deadlines due to weak interest within the auction. Hopes that the corporate might sell for as much as $10 billion now seem unrealistic, with insiders forecasting a sale price closer to $7 billion, the Post reported, citing unnamed sources.
Initial bidding began in February. A second round reportedly awaits.
One query is how much a sale would affect Subway corporate’s relationship with franchise owners. One other query is whether or not other large franchise brands will bid on Subway. Because it is, probably the most interested suitors look like large private equity firms, based on reports from the Post and Bloomberg News.
“Subway likely can be sold but price is a problem,” the Post quoted one source as saying.
Subway is one among the biggest restaurant chains on the planet. In an in-depth take a look at Subway and at how much a median Subway franchise owner makes, StartupNation found these key points:
- Initial investment in a Subway franchise is commonly lower than outlays for other franchises: Expect a franchise fee of $15,000 plus an estimated $207,000 to $477,000 to take a position in a store, based on Subway’s estimates.
- Success depends not only on total sales, which could be affected by location, competition and other aspects, but in addition on how well franchise owners manage labor, food and other costs.
- The good thing about Subway will not be in owning a Subway franchise a lot as owning multiple Subway franchises, based on several Subway franchise owners who posted about their experience on the StartupNation community forum. Posters say that multi-unit owners get probably the most out of the experience.
In early 2023, Subway confirmed that it had hired JPMorgan to explore a possible sale of the corporate. Coming off a powerful 2022 that saw its same-store sales climb 9.2%, Subway said its strategy was paying off.
Within the California lawsuit, plaintiff Nilima Amin desires to dismiss the case in San Francisco federal court without prejudice, which might let her sue again when she feels higher, Reuters said.
Since January 2021, Amin has filed several complaints that dispute Subway’s claim of using “100% tuna,” according to CT Insider.
Subway is asking the judge to dismiss the case and require the lawyers to pay $499,000 in attorneys’ fees, about $87,000 in experts’ fees and nearly $32,000 in other costs, CT Insider reported.
“Unless there are consequences for the plaintiff’s counsel’s litigation tactics, this type of behavior won’t ever stop,” Subway said in its filing. “On top of the considerable and unnecessary expense of litigation, the reckless allegations made on this lawsuit caused a media frenzy that severely harmed Subway, its individual franchisees and the Subway brand. Inter alia, Subway had to take a position substantial resources to fight the misinformation that the plaintiff and her counsel knowingly propagated to Subway’s tremendous detriment.”