Welcome to our latest blog post, where we delve into the intriguing world of Subway’s co-founders and their secret finances. In this exclusive piece, Forbes has revealed what the co-founders attempted to hide from public scrutiny. As a reader, you’re in for an exciting ride as we unfold the hidden truths behind Subway’s intriguing financial history. So buckle up and read on as we explore this fascinating story.
Secret Finances Unearthed: What Subway’s Co-Founders Tried To Hide | Forbes Exclusive
Do you know what your favorite Subway fast-food chain has been hiding all these years? A Forbes investigation by Jemima McEvoy found that Subway’s late co-founders, Peter Buck and Fred DeLuca, reportedly salted away billions for themselves and their foundations, while some of Subway’s franchisees feel left with crumbs. In this article, we will delve into Forbes’ exclusive report and uncover the dark side of Subway’s success that perhaps you didn’t know before.
Subway is a widely popular franchise that began its journey in 1965, started by two young men, Peter Buck and Fred DeLuca. They turned Subway into a global brand, with over 44,000 stores in 112 countries today. However, the recent Forbes report on the business practices of these co-founders has raised many eyebrows, leaving their customers and franchise holders in shock.
The report highlights how some franchisees feel left out in favor of the co-founders’ families. The video provides an insightful look into the Subway franchise business model. Let’s uncover the truth behind the Forbes exclusive.
The Dark Side of Subway’s Success
The Forbes investigation reveals that Subway’s co-founders accumulated vast wealth over the years, worth over $15 billion collectively. The co-founders reportedly passed down their wealth to their families through trusts and sub-trusts, which are mostly tax-exempted. They also set up multiple foundations in their lives, which allowed them to control funds while hiding behind a veil of secrecy.
While Subway’s co-founders appeared to aid and support their franchisees, the reality was often quite different. A large number of Subway franchisees felt that they were being exploited financially by the further expansion of the franchise, which they felt resulted in their revenues taking a hit. Essentially, the quest for more profits meant compromising the franchisees, who felt left out in the cold.
Where Did the Money Go?
According to Forbes, Subway has claimed that Buck and DeLuca’s personal fortunes did not come from the franchise’s success but rather from their own investments. However, the investigation reveals that Subway has granted them a significant chunk of the profits, black-boxed from public view. Furthermore, in 2011, Subway paid Buck nearly $16 million for rental space in a property he owned, and DeLuca’s family trust sold Subway a $10 million headquarters property the following year.
The Discontent of Small Business Owners
Some franchisees expressed their discontent, stating they feel short-changed by Subway’s founders. The franchisees believe that the co-founders should have shared their fortunes with them. Instead, they pointed out that franchisees often have to pay exorbitant prices for certain products, which ultimately eats up their profits.
McEvoy noted that, while the co-founders had a vision to provide consumers with healthier meal options, the cornerstone of their empire’s astounding success, this vision has been forgotten as they prioritize their families’ interests.
Subway’s years-long success story is no doubt impressive, but the dark side of the business has been exposed. The co-founders have allegedly amassed vast wealth, and their foundations and trusts hide this wealth from public scrutiny. The franchisees, who form the backbone of the business, are left to bear the brunt of excesses aimed at profit maximization for the co-founders’ families.
Furthermore, it’s clear that Subway is unwilling to share profits with the franchisees, who contribute to the empire’s success, to a staggering extent.
And with that comes five FAQs:
What did the Forbes investigation reveal?
The Forbes investigation claims that Subway’s co-founders hid billions for themselves and their foundations, while the franchisees suffer from the lack of support.
Do Subway’s co-founders still own Subway?
No, the co-founders have passed away, but their families continue to have a large stake in the business.
Is Subway withholding profits from franchisees?
Yes, some Subway franchisees feel that they should be included in profits and business dealings.
What should I know before investing in a Subway franchise?
Before investing, it’s essential to research the company’s business model and investigate feedback from current franchise holders.
How is Subway going to address the problems shown by Forbes?
At present, Subway has not commented on Forbes’ report.
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