Former Subway operator threatens to leak secrets

The Australian man is demanding money from the company in return for his silence.

By MSN Money Partner Aug 7, 2014 1:44PM
A Subway shop in New York City (© Ben Hider/Getty Images)By Hayley Peterson, Business Insider

The former owner of a Subway restaurant in Australia is threatening to expose secrets about the chain's sandwiches that are allegedly worth $35 million.

Arun Singhal has demanded money from Subway in return for his silence, The Age reports.

Subway subsequently filed for an emergency restraining order in May that restricts the public release of information pertaining to Subway's recipes and operations.

Subway has allegedly said it would suffer $35 million in losses if Singhal went to the media with his "secrets," according to Singhal.

A Subway spokesman told The Age that the company would not "give [Singhal] credibility by commenting" on the matter. "It's really disappointing that a former franchisee has taken this route," the spokesman said. 

We reached out to Subway for comment and will update when we hear back. 

Singhal has an axe to grind with Subway. He says the company forced him out of business after he called corporate to complain that Subway was misleading customers about the fat content of its sandwiches. 

Shortly afterward, he says, Subway told him his franchise wasn't making enough money and encouraged him to close the business -- in which he had invested $350,000 -- with the promise of ownership over a new shop in a busier location.

But Subway never followed through on its promise, so he threatened the release of proprietary information. 

"I lost my lifetime's savings because of Subway's deceptive behavior, and they left me with no option but to declare bankruptcy, which is hard as I have a family to support," he told Vice. "I told the sandwich mafia that if they didn't compensate me for the loss of business, I'd go to the media to tell everyone about my story. Also to make people aware of Subway's misleading marketing style. People are just unaware they're consuming so much fat."

More from Business Insider
Aug 7, 2014 3:08PM
He wants to extort $35 million for the "secret" that people are getting too much fat in their fast food?  Good luck with that, bro.
Aug 7, 2014 3:43PM
Aug 7, 2014 2:22PM
You mean there's Soylent Green in Subway sandwiches?
Aug 7, 2014 4:36PM

Subway = 95 % bread...5 % processed meat by products and pink slime with water and preservatives added, trucked across 1,000s of miles in a refrigerated tractor trailer, pressed into paper thin slices, its not worth a dollar...let alone $ 5.


Ask you local Subway worker why the restaurant does not have a meat slicer on the property?

Aug 7, 2014 2:40PM

What the heII could be worse than adding plastic to the bread????



Aug 7, 2014 2:57PM
What, how the meat is painted on it is so thin ?
Aug 7, 2014 7:33PM
Aug 7, 2014 6:50PM

Subway nutrition info is available online, and nutrition guides are available in the store if you ask for one.  So if people are unaware of fat in the sandwiches it is their own problem and not Subway's.   It is also no secret Jared didn't lose all that weight because Subway is better.  He just got to the point where he was serious and restricted his calories and meals it could have been any fast food.  He also did lots of exercise and walking in addition to his restricted diet.  Subway is a little better than hamburgers, but you still have to be careful with the oils and condiments you add to the sandwiches.  Subway is still considered fast food.


Aug 7, 2014 7:04PM
Lunch meat and cheese sandwich with some veggies. What secret is he talking about ?
Aug 8, 2014 10:42AM
The squeakiest wheel gets the most grease, or wears cement overshoes off the Great Barrier Reef. Then again Subway has been extorting all of us for a long time. Went in the other day, got a 6" sandwich, chips and a drink. It was nearly $10! Can put a couple of more bucks with it and get a good steak. The prices these franchise restaurants charge are crazy!
Aug 8, 2014 10:07AM
Since its in Australia, the secret must be kangaroo meat.
Aug 7, 2014 5:45PM
Aug 8, 2014 10:39AM
Aug 7, 2014 3:28PM
i guess extortion is not a crime down under
How is this news, it's a simple extortion case.
Aug 8, 2014 8:06AM
Oooh, Oooh, I know the secret........ You take all the ingredients and condiments and you leave them all out in the open without sealing them in individual containers and you lay the bread on a board surface where everything else has been so that everything ends up tasting like everything else.
Aug 7, 2014 3:32PM

The Title and sub-Title of the Article are tell-tale for me NOT to read further...IMO

What kind of "secrets" could you give up for mediocre, fast-food sandwiches, that usually taste like crap....

Mostly heavy bread, and vegetables or garnishes; That are TASTELESS....

Aug 8, 2014 11:55AM
If you eat Subway, I believe "fat content" is the least of your worries.  What about all the chemical additives/preservatives in their breads and meats? 
Aug 8, 2014 10:31AM
I don't see this as actual extortion, as a broken agreement by Subway corporate -- The man invested 350 thousand dollars and subway pulled a fast one on him. Basically this poor guy got rooked. If I had invested that much money and been promised a transfer of ownership, it wouldn't be extortion I would be in jail for, it would be murder.
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