Subway is seeking big new franchisees in the U.S. in a push to revamp its ownership model, but low restaurant profits and outdated stores are making it a tough sell for the global sandwich chain, Reuters reported. Several multi-unit operators - the more sophisticated, financially sound franchisees that Subway desires - examined the possibility of entering the chain's system by buying swaths of restaurants but walked away after seeing how little money they made, according to two of their advisers. Lawyer Justin Klein and consultant John Gordon said their clients were deterred by low margins and the prospect of making necessary renovations. Subway, which has closed thousands of U.S. locations since 2016, said a year ago that it wants to shift away from its current base of small franchisees that own just one or two shops, which tend to be family-run and sometimes barely scrape by.
