The Week: Subway franchisees file second suit

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The north American Association of Subway Franchisees filed suit in Connecticut Superior Court in New Haven, Conn., aiming to block revised terms of an April 1 franchise agreement drafted by Doctor's Associates. Language in the contract shifts control of Subway's $400 million-plus advertising fund from the franchisees to a party designated by Doctor's Associates. The contract also has an "agree to agree" clause that modifies the terms of franchise agreements for all existing units to the new terms when franchisees sign a store contract. "We've not seen the lawsuit so we cannot comment on it," a spokesman for Doctor's Associates said.

'WSJ' to sell ads on front page

in the latest show of big pressures reshaping the newspaper business, The Wall Street Journal has decided to sell ads on its front page for the first time since early in its nearly 120-year history. The ads on page A-1 will be available in the lower right-hand corner every day the Journal publishes. The paper ntroduced front-page advertising on its European and Asian editions last October. "The front page of The Wall Street Journal sets the agenda for business among the world's opinion leaders and decision makers," Judy Barry, senior VP-advertising sales, said in a statement. "Our new front-page advertising opportunity enables our clients to make a powerful statement to the Journal's unique readership."

Gap returns to TV with jeans campaign

despite a glut of denim in the market, the ailing $5.4 billion Gap retail brand is marking its return to TV advertising after a nearly one-year hiatus with a campaign focused entirely on jeans. The campaign, dubbed "Jeans Take Shape" from agency Laird & Partners, New York, breaks July 20 with a single TV ad that features dancers in silhouette turning as various types of denim products, from skinny jeans to miniskirts and denim jackets, take shape. After cutting back on ad spending over the last year, the retailer is also putting big dollars on the line again, "comparable to previous years," Gap spokeswoman Katie Molinari said. The retailer declined to disclose the campaign budget; in 2005 Gap spent $106.8 million in measured media, according to TNS Media Intelligence, down 35.9% from 2004 spending levels.

Fleishman-Hillard replaces CEO Graham

fleishman-hillard, PR counselor to corporate heavyweights such as Visa and AT&T, announced a management shuffle that includes the naming of a new chief executive for only the third time in the firm's 60-year history. The Omnicom Group-owned agency said John Graham, who has been president-CEO for 32 years, will drop those titles and continue as chairman. Mr. Graham, 68, will be succeeded in those roles by David Senay, a 22-year veteran of the firm who will now oversee its operations. Paul Johnson will become vice chairman-worldwide growth and president-public affairs.

Lorillard suit against American Legacy rejected

the delaware Supreme Court rejected Lorillard Tobacco Co.'s argument that the American Legacy Foundation's "Truth" anti-smoking ad campaign represented "vilification" of tobacco makers. The court ruled that the ads and similar ones are legal under the 1998 settlement with 46 state attorneys general that funded the advertising. "The advertisements are not invidious, disparaging, offensive, belligerent, nor fiercely or severely critical," the court said.

Fox to launch national morning show in 2007

regis and Kelly are going to have some new competition next year. Fox Television Stations and Twentieth Television will launch a national morning show hosted by Mike Jerrick and Juliet Huddy in January 2007. The show will feature general-interest and pop-culture programming, as well as audience interaction. The hour-long show, which is still unnamed, will broadcast live from New York to all Fox-owned and -operated affiliates, and will air at 9 a.m. in most markets. Mr. Jerrick and Ms. Huddy host Fox News Channel's "DaySide" and will continue to do so until the fall.
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