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Subway’s relationship with disgraced Jared Fogle highlights need for the right termination clause

Longtime Subway sandwich shop pitchman Jared Fogle agreed to plead guilty to child-pornography charges, among others. Subway had previously suspended its relationship with Fogle. The case, along with the attendant bad publicity for the already-troubled Subway, is a sad reminder of the value of including an appropriate “termination for business-reputation risk” clause in a contract of this nature, such as the Common Draft clause on that subject. I’ll be updating the commentary to that clause accordingly.