Exclusive | Subway has ignored screams for help from shop owners and risks being gobbled up by fast-growing rival Jersey Mikes

Subway has ignored “screams for help” from its struggling franchisees for years — and is now at risk of being “gobbled up” by a fast-growing rival, a lawyer representing thousands of sub shop owners warned.Subway last week said CEO John Chidsey will “retire” at the end of the year — five years after he became the first executive outside the founding family to lead the chain.That’s despite the fact that Chidsey had said he planned to stay after the company was sold in May for $9.5 billion to Roark Capital.As Subway announced the CEO exit, it also revealed it was scrapping its $6.99 footlong deal a month early after admitting to franchisees the deal “is not driving anticipated results,” Restaurant Business Magazine reported.Subway’s downbeat headlines came in stark contrast to recent news from a much smaller competitor, Jersey Mike’s.

The latter now operates just 3,000 US locations versus Subway’s 20,000 — yet sold itself to buyout firm Blackstone Group for $8 billion, not far off what Subway fetched six months earlier.Subway’s $6.99 footlong promotion was the latest in a series of punishing moves under Chidsey for Subway franchisees, who are forced to pay an 8% royalty fee on gross revenue regardless of their profitability.Chidsey has likewise forced franchisees to remodel restaurants despite uncertainty on returns and pay “undisclosed” technology fees, according to Robert Zarco, who provides counsel for the North American Association of Subway Franchisees, which represents about half of Subway’s 20,000 US restaurants.

“If Subway keeps treating its franchisees the way it has over the last five years where it is ignoring their screams for help, Jersey Mike’s will have an easy task of gobbling up the Subway brand,” Zarco told The Post.“I hope it’s the reason for the change because it should have been,” Zarco added, referring to Chidsey’s exit.“Because of the tensions that are prevalent, it is a good move for Roa...