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Subway and franchisees fight over advertising plans
April 23, 2006
Advertising Age: Subway restaurants, in a new contract with franchisees, is attempting to assert control over its $400 million advertising fund. Since 1978, the independent Subway Franchisee Advertising Fund Trust has held sole control over the ad budget, but the new contract contains a clause stipulating joint management of the funds. It's not clear what management hopes to gain from this change, or whether franchisees will agree to the new terms.
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