This presentation provides basic information regarding becoming a SUBWAY franchisee.

For further information visit our website – www.subway.com.

Once we receive a completed application (known as Application for Additional

Information located on subway.com) we will forward you our Franchise Disclosure
Document (FDD) which will describe in detail how the SUBWAY® franchise relationship
actually operates and will specify exactly how the company is organized. In addition, it
will provide the various programs that we offer franchisees. This document will allow
you to contact other owners so that you can obtain the financial information needed
for your research. There is no obligation by doing so; it simply indicates your degree of
interest.

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These are the topics that we will be discussing this evening.

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Development Agents: Franchise brokers licensed under contract and assigned
geographical areas whose duties include franchise sales, site selection, training and
operational assistance to franchisees. Development Agents make recommendations as
to whether a prospective franchisee in their territory should be granted a franchise.
Further information regarding the relationship between Franchise World Headquarters,
LLC and the Development Agents can be found in the FDD.

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Capital Requirements: In the United States the total investment can range from
$116,200 to $263,150 for traditional locations and $86,100 to $203,850 for non-
traditional locations.

Figures do not include extensive exterior renovations. These amounts represent the
net investment required if you are eligible for the company's equipment leasing
program. If you do not select the equipment leasing program or it is not available, you
should substitute the costs for Equipment Lease Security Deposit with $55,000 to
$91,000. The average/medium cost of equipment has been averaging from $75,000.00
to $90,000.00 depending on the décor.
The SUBWAY® Franchisee Advertising Fund is an organization within the SUBWAY®
system that was established to fund group advertising and promotion of SUBWAY®
restaurants for the benefit of all franchisees. FAF creates advertising programs
designed to build SUBWAY® restaurant sales and the chain’s identity, to produce
advertising materials for the use by SUBWAY® store owners, and to pool resources to
purchase media exposure.

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Drive through SUBWAY restaurants are available

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How should I conduct my research when contacting other owners? When contacting
owners here are the best procedures to follow: Inform them that you have received the
FDD from SUBWAY reason being, the owners will be more receptive to answering your
questions. Ask franchisees about our cost control systems. When speaking to owners
ask them what the average weekly sales volumes, food costs and labor costs are on a
national and local region. From this point you should ask the owners if they fall into
this range. If someone is interested in selling their store, they will be more receptive to
answering your questions. A restaurant’s performance is partially dependent on
leadership, management, and meeting operational standards. Providing great customer
experience is essential in building your business.

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Development Agents are franchise brokers licensed under contract whose duties
include franchise sales, site locations assistance, training, and operational assistance to
franchisees. We pay Development Agents a portion of amounts we collect from
franchisees as payment for their services.

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Non-Traditional Location Description: Examples of non-traditional locations include
convenience stores, gasoline service stations, highway rest stops, department stores,
hospitals, parks, universities, schools, sports arenas, convention centers, airports, bus
and railroad terminals, military bases, business complexes, assisted living/nursing
homes, and other similar locations.
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Citizenship requirements:
Anyone purchasing a SUBWAY® franchise to be located in the United States must be a
citizen or permanent legal resident of the United States.

Accepted forms of proof of citizenship or legal residency in the USA or Canada include:
• Birth certificate
• Passport
• Certificate of Naturalization
• Re-entry permit
• Green card

Not Accepted: E2 Visa’s or investors Visa’s.

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