Dear NAASF Community,

I’m honored and privileged to have been elected Chairman for 2023. For those who have supported NAASF for many years leading up to 2023, I thank you. For those who have recently joined us, welcome. 

2023 was quite a year for Subway® with many changes that created challenges and opportunities. I believe that 2024 will continue to offer both challenges and opportunities that we--as a group--must work together to find the best way to navigate.

I want to emphasize the significance of our franchisee association and the incredible benefits it brings to each member of our franchisee community. Our association serves as a powerful platform—one that fosters collaboration and offers a supportive network that extends far beyond the walls of our individual restaurants. The strength of our collective efforts is a driving force behind the success and profitability of each franchisee who engages with NAASF. On some issues we as franchisees can go it alone, but more often than not, a larger more representative voice is most effective. 

NAASF: Franchisee-Focused Activity in 2023

We held an open Franchisee mix ‘n’ mingle event in Minneapolis last March and welcomed both NAASF Members and prospective members in the region to meet and speak with the NAASF Board as well as with Ron Gardner and Andrew Malzahn of Dady and Gardner. 

In late spring, we offered Subway a solution (communicated in writing) for restaurants that need to be remodeled but do not have enough lease term or franchise agreement term to receive proper ROI. While Subway decided not to collaborate and work together to find a solution, we strongly believe that Subway realized the issue at hand and are working with some franchisees to resolve this issue. Unfortunately, Subway has decided not to work with all franchisees. 

In addition, NAASF submitted a letter as a result of the FTC’s Request for Information (“RFI”) seeking specific instances and details from franchisees regarding their struggles with their franchise agreements.  This document was prepared and submitted to the FTC by NAASF and its General Counsel to ensure Subway franchisees and their challenges were disclosed and represented, in an effort to bring challenges to light and, just maybe, alleviate some of these challenges for other owners.

NAASF, on behalf of our membership, employed counsel to assist with recouping dollars from the Payment Card Interchange Fee Settlement since July of this year and we expect to provide some further updates in early 2024. 

Many have shared with us that the franchisee conference, held in Naples just a couple of months ago, was one of the most productive and informative meetings members have attended in quite some time.  We work to provide these events for the franchisee community that offer information, education and opportunities to talk to fellow franchisees about issues that face us all, but also about resolution and best practices. The location, the information shared, and the overall experience at this event all appear to have resonated with those who joined NAASF in Naples.

Importantly, NAASF and its General Counsel worked with IPC to remove language from its bylaws that allowed IPC to assign claims to DAL with no guarantees that DAL would reimburse franchisees any or all portions of any claims awarded.

The End Users’ License Agreement (“EULA”) was recently reviewed by NAASF’s General Counsel and given the go ahead for members to sign it. 

NAASF recently reached out to Subway seeking its rationale and justification for charging owners a technology fee. We have not yet received a reply from Subway but in the interim, we will continue to press the issue as we believe it is a fee being unjustly charged to several thousands of franchisees.

Our legal team of Ron Gardner and Andrew Malzahn from Dady & Gardner held a webinar discussing best practices (things to do and not do) when facing a termination letter as a result of not remodeling your restaurant. This event was very well attended and the feedback you provided to us was helpful, so we’re looking to provide more of these types of webinars in 2024.

What about mandated discounting? Members, we are still working on this critical and wide-reaching topic and what action, if any, we can take to ameliorate this mandate.

NAASF Looks Ahead

In 2024, we will continue to provide educational webinars that have the sole purpose of moving your business forward. We also continually strive to improve our communications to the membership. 

The commitment NAASF has made to protect our members and their respective businesses has resulted in many hours of our general counsel’s work. Our legal team consisting of Ron Gardner and Andrew Malzahn from Dady & Gardner, are some of the best franchise attorneys in the country. This opinion is widely shared in many franchise publications as well as throughout the franchise community.  

To everyone reading this, on behalf of the entire NAASF Board and staff, thank you for being a NAASF Member. If you happen to be reading this and aren’t yet a member, it is critical that everyone become a part of NAASF, now more than ever. While each of us as franchisees are not always going to agree on everything, what we can all agree on is we all want to be profitable business owners and enjoy a successful 2024. We need your support to take on the issues before us, and the ones that are on the horizon as we look toward 2024 and beyond.

Happy holidays and here’s to a successful and profitable 2024!

With passion and love for the brand,

Bill

Bill Mathis

Chairman

2023 NAASF Board of Directors