Franchise Graveyard: Mike Schmidt’s Philadelphia Hoagie

Mike Schmidt played his entire career for the Philadelphia Phillies, and is widely regarded as the greatest third baseman in history. He was decidedly less talented at deciding whom to license his name to. Schmidt reportedly lent his name and support to a Philly-style sandwich chain in exchange for $1000 per year per unit. It was one pitch Schmidt should have passed on, since the chain made it to ten units and then struck out in a rather ugly fashion. They left the franchisees stranded, one of whom detailed her tale of woe in FTC hearing testimony that’s posted online.

IF YOU HAVE ANY INSIGHT OR EXPERIENCE WITH THE MIKE SCHMIDT’S PHILADELPHIA HOAGIE FRANCHISE, PLEASE LEAVE A COMMENT.

Franchisee Diane Mousely’s testimony transcript from 1997 FTC ANPR public hearing.

Excerpt from Mike Schmidt’s Philadelphia Hoagie Shortchanging Its Franchisees. (Originated from The Philadelphia Inquirer. Publication Date: 29-SEP-97 Author: Briggs, Rosland) COPYRIGHT 1997 Knight-Ridder/Tribune Business News

Sep. 29–Dianne Mousley and her husband, Richard, bought a Mike Schmidt’s Philadelphia Hoagie franchise for $12,500 in March 1995.

They liked the idea of owning a business and having a support system a phone call away.
But on Sept. 19, the Mike Schmidt’s Philadelphia Hoagies sign outside their Lancaster restaurant was replaced with a Poor Richard’s Philadelphia Hoagies sign: They were no longer franchisees, but independent business owners.

The Mousleys had operated one of 10 franchises bearing the Mike Schmidt name, all in eastern Pennsylvania and South Jersey. Now, all but one of them have closed — victims of lagging sales and, the franchisees say, too little help from the company.

The retired Philadelphia Phillies star never was involved in day-to-day management of the hoagie chain. Schmidt gave his name to the business in exchange for $1,000 annual royalty for each franchise. But Schmidt hasn’t received payments from the business in two years, according to his business agent.

The Mousleys and the other franchisees blame management for their failure.

“There was no support. They sent newsletters at the beginning about other (restaurant) openings and tried to get new products on the menu,” said Dianne Mousley. “It was a general decline….”