33, , , Year # Stores # Countries Store Growth

TEAM SUBWAY ®... Awards and Accolades

Team SUBWAY ® Awards and Accolades # 1 Global Franchise Opportunity –Entrepreneur # 1 Provider of Healthful Foods – Sandleman & Assoc. # 1 Sandwich Chain, Top 400 Restaurants Rankings –R&I # 1 Top Service - Zagat Survey

Franchising is a Powerful Economic Force  760,000 U.S. franchised establishments generating in excess of $1.5 trillion  Producing one-out-of-every-seven jobs Source: Franchising World

SUBWAY ® ’s Concept  Sandwiches made to order on fresh baked bread  Simple operations  No cooking  Low overhead  Alternative to what others are offering  Low investment

Investment Requirements  Franchise Fees $10,000 - $15,000 initial franchise fee* $ 5, ,500 additional franchise purchase*  Terms of Franchise Agreement 20 yrs. Renewable Franchise can be sold at any time *Depending on country

Financing  Equipment Leasing  Five Approved Financing Companies  Option to select your own financing source

Before you open Training  Two weeks in Connecticut or applicable country Site Selection Assistance  Lease and sublease same terms as Master Lease  Advantages of Subleasing

Store placement The franchisee  Is responsible for finding a location The company  Is responsible for approving the site  Provides training to identify potential locations

Store Design

3D Renderings of Store Design

TUSCANY II Décor

Drive – through SUBWAY® restaurants

Support – before you open  Training You will participate in an intensive two-week program at one of our regional training center’s  Site Selection We assist you in finding a location for your business  Lease Negotiation We provide guidance and negotiation assistance

Support – before you open  Equipment Ordering We help you order your equipment package for timely delivery. Our manufacturers may also be able to consolidate equipment from various suppliers  Operations Manual Our in-depth manual covers a full range of topics important to running your own business including information on human resources guidelines and training for your store employees

After You Open

 Field Support: You will be assigned a field representative who will help you get started and provide ongoing operational and marketing support  Franchisee Services: You will be assigned a coordinator who will serve as your main contact person, and is only a phone call or message away Support – After You Open

Research and Development Our executive chef, baking specialists, staff nutritionist and product development team continually strive to make our excellent food even better Continuing Education You’ll receive periodic newsletters, s and voic s. Videos, DVD’s, and 24/7 training classes Support – After You Open

Royalties  Royalties - 8%  Advertising - 4.5% Gross sales minus sales taxes collected = net sales. Royalties are paid on net sales.

Why Franchisees Embrace the SUBWAY ® System  Quality of our product  Lower investment  Location flexibility  Professional advertising materials  Buying power (IPC)  Operational support

Who are you?  Self confident/persistent problem solver  Owner/operator  Follow our direction  Moderate risk taker  Willing to commit long-term  Leadership skills  Ambition & goal setter  A code of ethics

Investing in yourself  Investing in yourself makes sense  investing in others can be risky

Investing in yourself  Steadily building your customer base will yield your financial very best returns  Building additional stores can be a great investment

Earnings Claims Company policy prohibits providing earnings claims Actual results vary from restaurant to restaurant We encourage calling SUBWAY ® Restaurant owners

The Franchisee Program The franchisee is responsible for:  Initial franchise fee  Finding locations  Leasehold improvements  Leasing or purchasing equipment  Hiring employees and operating the store in full compliance  8% royalties weekly  4.5% advertising weekly The Company provides:  Access to product formulas & operational systems  Location assistance  Store design guidance  Equipment ordering guidance  Training program  Operations manual  Field Rep on site during opening  Periodic evaluations, ongoing support, and publications

Opportunities Available  Invest in a new franchise  Purchase an existing store  Multi-unit operation (Reduced fee for qualified owners)  Build or buy and resell  International Development  International Development Agent

Washington DC

Subway is the largest franchised concept in Metropolitan Washington DC with over 70 locations. The next largest franchised concept in the area is McDonalds with a little over 30 locations. Within our Territory the Washington DC market on average produces higher sales volume then our surrounding areas. The flexibility of our concept allows Subway to open more restaurants because we can open in spaces as small as 600 square feet in non traditional locations.

Development opportunities in this market has stayed strong during this tough economic time. As competition has contracted or stopped development Subway has continued to develop and gained a stronger market presence. Our menu is healthy, affordable and is enjoyed by everyone.