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1 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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Page 1: 1 This presentation provides basic information regarding becoming

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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.

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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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