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THE ORIGINAL TOASTED SUBS FRANCHISE FRANCHISE INFORMATION REPORT
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THE ORIGINAL TOASTED SUBS FRANCHISE...4 QUIZNOS FRANCHISE REPORT of the ingredients to perfectly meld with our artisanal bread. Our customers get all of this at an extremely affordable

Mar 21, 2020

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Page 1: THE ORIGINAL TOASTED SUBS FRANCHISE...4 QUIZNOS FRANCHISE REPORT of the ingredients to perfectly meld with our artisanal bread. Our customers get all of this at an extremely affordable

THE ORIGINAL TOASTED SUBS FRANCHISE

FRANCHISE INFORMATION REPORT

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QUIZNOS FRANCHISE REPORT

Why Own A Quiznos Franchise?.......................................................03The Quiznos Franchise Story .............................................................05How Does Quiznos Stand Out From The Competition? ..............06What Are My Startup Costs? ............................................................07Why Our Menu Innovations Important ............................................09How Much Money Can I Make? ........................................................10Quiznos Restaurant Types And Layouts .........................................11Markets Where Quiznos Works ........................................................12Who Are We Looking For? .................................................................13How Do We Support Our Franchisees? ..........................................15The Power Of Quiznos Marketing Support ....................................16Meet The Management Team............................................................18Next Steps .............................................................................................19 Privacy Policy ......................................................................................20

Contents

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home, Quiznos sandwiches are created by actual chefs who design recipes and create flavor profiles that are complex, unique and irresistible.

“The fact that our sandwiches are designed by chefs is a tremendous differentiator,” says Tim Casey, President and CEO. “This is what we’ve been doing for more than 35 years, and this remains what the public wants: a sandwich or a salad that was designed to taste exceptional, with high-quality, artisanal ingredients, at a price that is affordable and with little to no wait. Our sandwiches are the reason behind our brand equity, and we are going to continue to innovate and expand our world-class menu to become more inclusive to more consumers over time.”

Visit a Quiznos restaurant and you’ll see immediately how much we stand apart from our competition. Our menu features an array of more than 20 designed sandwiches that are beloved across the country.

Seconds after your order is taken, we begin preparing your sandwich. Our meats & cheeses are sliced fresh daily so we can prepare each sandwich exactly the way our chefs designed it. We then toast the sandwich to heighten the flavor

Why Own a Quiznos Franchise?QUIZNOS IS ONE OF THE MOST WELL-KNOWN SANDWICH BRANDS Have you ever walked into a room where everyone knows your name? For Quiznos franchisees, this is a daily experience. Since 1981, Quiznos has won over millions of devoted sandwich lovers who cannot wait to get their hands on one of our toasty subs. This puts our brand equity far beyond our competition, as Quiznos continues to enjoy widespread popularity and brand recognition that continues to grow after close to four decades in business. More importantly, our enormous brand equity greatly increases the profit-potential of our restaurants – especially in the crucial months after your grand opening celebration.

The true reason behind our outstanding brand equity is our exceptional food, and let’s face it, it’s the reason why you’re interested in investing in a Quiznos franchise. What makes our food so special? Our secret lies in the fact that while our competitors file their customers down a cafeteria line, charging for a sandwich the customer could have made at

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QUIZNOS FRANCHISE REPORTof the ingredients to perfectly meld with our artisanal bread. Our customers get all of this at an extremely affordable price and for an average wait time of three to five minutes.

This is not to say that Quiznos frowns upon customization. While we take pride in how our sandwiches taste, we give our customers the opportunity to enhance their sandwiches by allowing the freedom to add sauces and toppings at our self-serve Flavor Station.

“Our recent efforts to become more of what our customers know and love have been enormously successful,” says Natalie Hansen, Senior Director of Development. “The in-store experience has been significantly enhanced by our new restaurant design. Our new look and feel is chic, ultra-modern and seems much larger than our average 1,200 square foot layout. This makes the investment more affordable for franchisees, as well as improves the overall customer experience, increasing the frequency of a customer’s visit.”

WE‘RE GROWING, AND WE’RE GROWING SMART In order to capitalize on our outstanding brand equity, our new leadership team is intent on growing our brand smartly and effectively across the nation. To do this, Quiznos first had to modernize its business model and lower the barriers to entry. We also invested in the tools that will help increase franchisees’ profitability levels.

Quiznos has never been more affordable to own than it is today. In 2016, our executive team solidified the “New Deal,” which not only reduced the franchise fee to $10,000, but it also lowered the ongoing costs of royalty fees from 7% to 5% and our ongoing national advertising fee from 4% to 2%. Importantly, the reduction in fees did not come at the expense of support that we provide to our franchisees, which is one of the most robust in the entire franchise industry. This agreement has the added benefit of helping to increase the

ongoing profit-potential of Quiznos restaurants, as the savings on royalty and advertising fees translate into real dollars for our franchisees to invest in their businesses. As we expand across the country, Quiznos is looking for entrepreneurs who are passionate about our brand and our food and have the drive to share that passion with their communities.

Our executive team is committed to supplying our franchisees with new technology to improve every aspect of their businesses. Most recently, we supplied our franchisees with a new point-of-sale (POS) system that has several key functions: 1) providing analytics on sales, effectiveness of promotions, inventory and unit profitability; 2) simplifying ordering new inventory and inventory maintenance; and 3) being synced with some third-party delivery platforms to help capture an outsize share of the mobile delivery revolution.

“Our New Deal is an industry-leading decision to reinvest in the long-term success of our franchisees,” says Patrick Hilton, Executive Vice President of Operations North America with Quiznos. “As a result, it makes us truly competitive in the crowded sandwich market, with ongoing fees reduced to an industry low, and it gives our franchisees the funds needed to market effectively in their communities. We’re not interested in collecting fees from our franchisees, we’re interested in building a relationship and providing the mentoring, training and education to empower our franchisees to become successful. We’re not focusing on hyper-growth, we’re focusing on growing smart. We’re focusing on finding the entrepreneurs who are passionate about our brand and a drive to succeed to open Quiznos in their communities.”

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The Quiznos Franchise StoryHOW THE SIMPLE ACT OF TOASTING CHANGED THE SANDWICH INDUSTRY FOREVERIf you were born after 1981, you cannot possibly remember what the world of sandwiches was like before Quiznos introduced the toasted sub and became one of the most popular sandwich brands of all time. You’re lucky, as the rest of us have to shiver at the memories of eating cold, uninspired sandwiches of questionable quality in the time before Quiznos opened up in our communities.

Quiznos was established more than 35 years ago in Denver, Colorado, by Jimmy Lambatos. Inspired by the oven-baked sandwiches of his youth on Long Island, Jimmy began toasting his subs to bring out the flavors of the butcher-quality meats, high-end cheeses, and artisanal bread. In fact, several of Jimmy’s original creations are still proudly showcased on the current Quiznos menu, such as our Classic Italian and our Meatball sandwich. Close to four decades later, Jimmy’s original sandwiches have been enjoyed by millions upon millions of people, and the brand he founded in 1981 continues to be championed by millions of devoted enthusiasts across the country.

The Quiznos of today continues to build upon Jimmy’s original idea of delivering the best possible sandwich experience. Our toasted sandwiches still proudly feature butcher-quality meats, high-end cheeses, and artisanal bread, though we kicked our game up several notches by introducing chef-inspired sauces and new flavor profiles that work with our ingredients like a symphony for your taste buds. While our roots are proudly planted in the comfort-food-style sandwiches such as our Chicken Carbonara, our menu continues to expand to cater to diverse lifestyles and appetites with new items such as salads, wraps and more!

In turn, Quiznos continues to remain at the forefront of inclusivity, appealing to more people than other sandwich brands could possibly imagine.

WHY IS QUIZNOS STRONGER NOW THAN EVER BEFORE? Quiznos is led by an executive team that is passionate about our brand, our storied history and the success of our franchisees. The knowledge of our brand, our culture and what it means to have lasting success is what fuels our Franchisee Centric leadership team, and is the reason we drafted a New Deal with franchisees to make Quiznos more affordable to own than ever before.

The New Deal greatly reduced the ongoing costs of owning a Quiznos franchise, while also enhancing the level of support that our franchisees receive. We’re proud to report that our royalty fees and advertising fees are some of the lowest in the entire franchise industry. Quiznos franchisees also benefit from a robust support platform that includes everything from initial training, ongoing education, ongoing marketing support, and our continuous roll-out of new menu

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items. Our commitment to leveraging new technologies helps Quiznos franchisees increase their profit-potential over the longterm. Of course, buying a Quiznos franchise comes with the tremendous upside of owning a restaurant that has tremendous brand recognition, with millions of fans across the country and a proven business model that has helped hundreds of entrepreneurs realize their dream of owning the best sandwich shop in their community.

How Does Quiznos Stand Out from the Competition?QUIZNOS ENJOYS OVERWHELMING BRAND EQUITY AND THE MOST CRAVEABLE, TOASTY SANDWICHES IN THE INDUSTRYThe sub and sandwich industry has grown at a tremendous rate over the last few years, with an annual revenue of $21 billion, according to IBIS World(1). The rapid growth is easily explained when we learn just how much Americans love sandwiches. The Smithsonian magazine reports that 50 percent of Americans eat a sandwich every day(2), and QSR magazine states that 70 percent of Americans

eat sandwiches at least twice a week(3). Overwhelmingly, Americans prefer the type of sandwiches Quiznos excels at making, as QSR reports that 64 percent of consumers crave the sub more than any other sandwich(4).

As the sandwich industry continues to grow, more and more brands are chasing after the same customer demographic at exactly the same time: lunch diners. A recent survey conducted by Accounting Principles revealed that Americans spend $2,000 annually, or about $37 a week, on lunch(5). Even more importantly, the growing third-party delivery boom, brought by brands like Uber Eats, Postmates, and others, is expected to cause a tremendous shift in the way Americans consume their food going forward. The Atlantic reports in an article called, “The Paradox of American Restaurants,” that “more people are ‘ordering in,’ and eating restaurant food on their own tables, desks, and beds.”(6)

While small now, the growing segment of mobile food delivery is expected to outpace overall restaurant growth well into the future: “These so-called ‘online restaurant sales’ — which just means ordering a meal delivery online — only account for about 2 percent of the restaurant market today, according to a Euromonitor study commissioned for Blue Apron’s public filing,” The Atlantic reports in the article. “But this online market is projected to grow 15-times faster than the rest of the restaurant business through the end of the decade.”

WHAT MAKES QUIZNOS A STAND-OUT OPPORTUNITY IN THE CROWDED SANDWICH INDUSTRY?In a crowded and competitive landscape, Quiznos leads the way in brand recognition and awareness. For more than 35 years, Quiznos has won over millions of loyal brand champions who crave our deliciously toasted, chef-inspired subs and sandwiches.

Quiznos excels at the art of sandwich-making because we take our food quality extremely seriously. We use authentic and expertly sourced ingredients, such as butcher-quality meats, all-natural cheeses, chef-inspired sauces and only the freshest vegetables. We pioneered the toasted sandwich, and it’s true that when our sandwiches are sent through our toaster, what emerges is a sandwich where all the ingredients

(1) IBIS World, “Sandwich & Sub Store Franchises – US Market Research Report”(2) Smithsonian Magazine, “Each Day, 50 Percent of America Eats a Sandwich”(3) QSR Magazine, “Survey: 70% of People Eat Sandwiches Twice a Week”(4) QSR Magazine, “Jersey Mike’s Study: Americans Love their Subs”(5) ABC News, “How Much Do Americans Spend a Week on Lunch?”(6) The Atlantic Monthly, “The Paradox of American Restaurants”

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work together to create one perfect bite after another.“What makes Quiznos exceptional begins with our food,” says Tim Casey, President and CEO of Quiznos. “It’s no secret that Quiznos pioneered the toasted sandwich, but most people don’t know that what makes our sandwiches taste so much better than our competition is the combination of a recipe created by a professional chef and our commitment to using the freshest and best ingredients on the market.”

QUIZNOS IS AHEAD OF THE CURVE ON THIRD-PARTY DELIVERY AND CATERINGOther sandwich franchise systems seem to struggle with mobilizing the technology needed to capture a significant share of the rapidly growing third-party delivery market. Quiznos, however, has a built-in feature on our new POS systems to make third-party delivery an easy way to earn additional revenue.

This new tool also allows our franchisees to track their catering orders, incentivizing the need for franchise owners to go out and grow their catering business in their local communities. Catering is an important, double-digit revenue stream for our top-performing franchisees, which grows depending on how much and how effectively it is marketed.

Our POS system also has our loyalty program built-in, which gives our franchisees real-time data on who their customers are, what they like to order, and how often they come in for a sandwich. Another big part of our new POS system is managing food costs and inventory, which has never been easier than it is now. We’re going to continue to leverage new technologies on behalf of our franchisees going forward so that we can continue to be at the forefront of consumer demand.”

What Are My Startup Costs?HOW MUCH DOES IT COST TO OPEN A QUIZNOS FRANCHISE?Quiznos is one of the most affordable sandwich franchise systems on the market. This makes our brand a terrific opportunity for first-time entrepreneurs and experienced restaurateurs alike. The total investment to open a new Quiznos franchise ranges from $211,850 to $326,549. In 2016, we negotiated a New Deal with our franchise network to reduce the ongoing royalty fees and national advertising fees, which are among the lowest in the entire industry.

Because our franchisees invest real time, money and passion into their businesses, Quiznos goes above and beyond in our support. We support our franchisees from the minute they sign the franchise agreement and become a part of the Quiznos family.

* Percentages shown in the chart are based on the statistics reported in each company’s franchise disclosure document for the year 2018

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QUIZNOS FRANCHISE REPORT

TYPE OF EXPENDITURE AMOUNT METHOD OF

PAYMENT WHEN DUE TO WHOM PAYMENT IS MADE

Initial Franchise Fee $10,000 Lump Sum At Signing of Franchise Agreement Us

Architectural Fees $6,000 - $15,000 Lump Sum Before Opening Outside Vendors

Lease Review Fee $0 - $3,000 Lump Sum Upon submission of lease for approval Us

Leasehold Improvements $63,000 - $95,000 As Arranged Before Opening Landlord or Contractors

Equipment, Construction Materials and Signs $75,000 - $120,000 As Arranged Before Opening Us; Used Equipment Owner

or one of our Suppliers

Delivery Equipment and Promotional Materials $0 - $1,199 As Arranged Before Opening One of our Suppliers

Uniforms $250 - $350 Lump Sum Before Opening One of our Suppliers

Cash Register, Credit Card, Music and Computer Systems

$1,500 - $2,500 Lump Sum Before Opening Third Party or one of our Suppliers

Phone, Other mIscellaneous Items $1,000 As Agreed Before Opening Outside Vendors

Security Deposits, Utility Deposits, and Business Licenses

$3,600 - $8,000 As Agreed Before Opening Landlord; Suppliers; or Government Agencies

Training Expenses $2,500 - $4,500 As Agreed Before Opening Outside Vendors

Opening Advertising Campaign $5,000 - $15,000 Lump Sum Before Opening Outside Vendors

Real Estate See Note in FDD As Agreed

Opening Inventory $9,000 - $11,000 Lump Sum Before Opening One of our Affiliates or Suppliers

Additional Funds -3 months $35,000 - $40,000 As Agreed As Incurred Suppliers and your

Employees

TOTAL ESTIMATED INITIAL INVESTMENT (excluding real estate costs)

$211,850 - $326,549

TRADITIONAL QUIZNOS RESTAURANT

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Why Our Menu Innovation is ImportantFRANCHISE COUNTINUES TO EXPAND THANKS TO THE MILLIONS OF DEVOTED QUIZNOS FANS ACROSS THE COUNTRYBeing in business for more than 35 years affords Quiznos the luxury of knowing who our customers are and what they expect from us. In recent years, Quiznos has invested significantly in customer data, beginning with our mobile app, which has been downloaded more than 500,000 times. This data is important, as we can see firsthand what our most popular menu items are, we can survey our customers to learn what they would love to see on our menu, and we can track how much they crave our sandwiches by how often they visit one of our locations.

We’ve learned quite a lot about our customers through this data, which has guided our executive team to remain on the cutting edge of food trends, to develop new flavor profiles, to embrace the rising popularity of ethnic foods and more. By doing so, we create a menu that is constantly evolving to meet the demand for both new and classic sandwiches alike.

“We’re extremely pleased with the success of our new mobile app and its ability to give us insight into our most loyal customers,” says Mark Lohmann, Chief Brand Officer,

with Quiznos. “Quiznos has tremendous brand equity, which after being so beloved by millions for more than 35 years is not surprising. Now, we get to complement this brand equity with real information about what our customers like and dislike, in order to develop a menu that both retains our loyal customers and captures more of the market. Our efforts have worked.”

BOLD, INNOVATIVE AND CREATIVE FLAVORSQuiznos has a menu that is second to none in the sandwich industry. We offer more than 20 mouth-watering, chef-inspired toasted sandwiches. Some fan favorites are our Chicken Carbonara, Spicy Monterey, Classic Italian, Turkey Ranch & Swiss, Veggie Guacamole and more. All of these classic sandwiches are made with butcher-quality meats, high-quality cheeses and the freshest vegetables available on the market.

The sandwich industry leader for bold, innovative flavors, Quiznos offers a classic menu, the result of years of ongoing expansion in order to continually enhance and improve our flavor profile. Beyond our menu, our innovation continues in our constantly rotating Limited Time Offerings (LTOs), which is where we really test our creativity and interact with trendy foods and new flavor profiles and try out new recipes to win over old and new customers alike.

Recently, we’ve offered a European-style Gyro, which is driving our customers wild. In the past, we’ve offered a line of artisanal Ciabatta Toasties, which introduced our fans to the delicious tastes of Turkey Pesto and Honey Dijon. Every year, we also feature our take on a sandwich featuring lobster, which gives our customers a luxurious treat at an unbeatable price point.

QUIZNOS FRANCHISE REPORT

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How Much Money Can I Make?QUIZNOS IS EXCITED TO HELP ENTREPRENEURS REALIZE THEIR FULL POTENTIAL WITH A BELOVED BRANDQuiznos remains one of the most exciting sandwich franchise opportunities on the market today. If you’ve tried our sandwiches, you’ll understand why we’re a leader in the $21 billion sub and sandwich industry. Given the fact that Quiznos is beloved by millions across the country, our brand equity alone makes us a wise investment, as your community will already be familiar with your restaurant before you open your doors.

In order to capitalize on our brand equity, Quiznos has invested significantly in training and education to help our franchisees grow and prosper over the long term. Begins with our training platform, which is a total of three weeks in Denver, Colorado, where you will work in an extremely

popular, corporate-owned Quiznos restaurant, learning every aspect of the business: from how to prepare our delicious sandwiches, to how to offer exceptional customer service, to mastery of our brand new state-of-the-art POS system, to managing inventory, a crew and more.

In addition to the extensive hands-on training, you’ll spend several hours in a classroom setting, where you will be coached by members of our executive team on important subjects such as marketing your new business, financial performance and how to become a leader to your crew and in your community.

“Financial awareness is an extremely important aspect of our training and ongoing support,” says Tim Casey, President and CEO. “We have over 35 years of experience as a franchise system, and we are proud to report that we’ve helped hundreds of entrepreneurs realize their dreams of small business ownership. As a brand, we are stronger than ever, and as a franchisor, we have more tools than ever before to help our franchisees launch their new businesses, as well as to ensure that they have everything they need to become top performing franchisees over the long-term.”

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The total investment to open a new Quiznos franchises ranges from $211,850 to $326,549. In 2016, we negotiated a New Deal with our franchise network to reduce the ongoing royalty fees and national advertising fees, which are among the lowest in the entire industry. The added, ongoing significance of the New Deal is that it provides our franchisees with more money to invest in their own businesses, such as local marketing efforts and networking in their community in order to grow sales.

Quiznos Restaurant Types and LayoutsWE OFFER FRANCHISE MODELS BEYOND OUR TRADITIONAL STORES TO MEET A GROWING DEMAND IN EXPANDING MARKETSAt Quiznos we have expanded beyond the original store model to meet the growing need for consumers and growing demand for our restaurants in areas beyond our core footprint. To set up franchisees for rapid growth, we’ve designed a modern new store that appeals to a broad customer base looking for inspired convenience. This new design instantly enhances our brand position in the market and ensures you an inviting environment in which to grow your business.

Our traditional store franchises are the foundation of our brand, but Quiznos embraces innovation and we have modified our original design to meet different geographic footprints and consumer needs. Because of this flexibility, we are expanding further around Denver, Colorado, the East Coast, internationally, and everywhere in between. We assist our future franchisees in site selection and rely on the most updated data to determine the perfect site for all of our restaurants, as well as the perfect franchise model.

Quiznos offers three models: traditional, non-traditional, and convenience store (C-Store) models ideally placed in areas with heavy automobile or foot daytime traffic. For each option, we work closely with franchisees on site selection and can also ascertain whether a conversion of an existing retail space makes sense for a particular area.

QUIZNOS SUB SHOP FRANCHISE TRADITIONAL MODELOur original traditional model is the core of our business. This standard store or new build layout typically ranges from 1,200 to 1,600 square feet. We can also build down to 1,000 square feet and up to 1,800 square feet to comfortably meet customer needs. Seating in a traditional store model, which is well suited for a strip mall with other stores and close to areas of heavy automobile or foot traffic, usually handles 20+ guests, with an option of outdoor seating. Our guests enjoy the ease of parking or walking to these locations, and being served a high-quality, quickly served meal where they can sit down and enjoy it.

QUIZNOS NON-TRADITIONAL MODELWhen it comes to non-traditional franchise opportunities with Quiznos, there are many location options to choose from, but our well-loved brand and functionality in smaller spaces make us a natural fit in nontraditional spots. Airport

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QUIZNOS FRANCHISE REPORTlocations, truck stops, travel centers, business centers, and college campuses are some of the shining stars in the non-traditional model.

Millions of travelers walk through airports every year, with an hour or more long layovers. Travelers spend millions on food and drinks in airports. Since our high-quality food is produced at a quick rate, airports and our other non-traditional models are a great option. Today, guests demand high levels of quality no matter the format, and Quiznos can adhere to the same level of expectation in a non-traditional location. The other advantage is peak times and volumes may be dramatically different than at traditional restaurants and experience high traffic during more hours of the day.

QUIZNOS CONVENIENCE STORE (C-STORE) MODELFor areas with busier on-the-go customers and where a traditional model is not possible, Quiznos 24/7 convenience stores (C-Stores) locations are an opportunity to capture sales from customers stopping in for their morning coffee or a quick breakfast bite to take along with them. The average size of the store ranges from 800 square feet to 900 square feet, with specific requirements for the front and back areas.

Quiznos’ C-Store menu is flexible, depending on space and equipment, and was developed based on consumer and partner feedback. It focuses on all dayparts, which is critical in the 24/7 space. Convenience stores are able to feature either the full menu, like a traditional location, or a modified menu that is a bit more limited such as cinnamon rolls and biscuit-and-egg sandwiches to capture sales from customers who stop in for their morning coffee.Increasing its presence at convenience stores enables the company to exist in places that normally wouldn’t support a traditional Quiznos, like service plazas, truck stops, travel centers, and busy urban areas.

Markets Where Quiznos WorksJOIN THE RESURGENT QUIZNOS SANDWICH FRANCHISE AS IT RAPIDLY EXPANDSQuiznos is excited to announce an aggressive development plan which will see our brand growing significantly in the coming years. Since our founding, we’ve helped hundreds of entrepreneurs realize their full potential as franchise owners. Today, a Quiznos sandwich franchise is more affordable to own and easier to run than ever before. We’re actively seeking people who are passionate about our food and sharing that joy with their community to become a part of our growing franchise family.

AVAILABLE TERRITORIES AND GROWTH MARKETSAfter years of building brand loyalty, the question people frequently ask is “Where can I find a Quiznos?” Led by a visionary, franchisee-centric executive team, Quiznos is now poised to strategically grow in the U.S. and around the world. With more than 500 locations in North America and more than 200 internationally in 31 countries, Quiznos has the potential to thrive in major metropolitan areas, shopping malls, suburban communities, and non-traditional locations such as colleges, airports, hospitals and more. The U.S. and International markets are wide open.

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“Quiznos has a lot of growth opportunity in areas where locations already exist, as well as entirely new markets,” says Natalie Hansen, Senior Director of Development .

The markets available range from large metropolitan areas to medium-sized markets and smaller communities. Quiznos is actively targeting entrepreneurs in Denver, Des Moines, Las Vegas, Little Rock, Milwaukee, Minneapolis, New Orleans, Phoenix, St. Louis and Wichita to open new Quiznos restaurants in these markets.

For entrepreneurs who are interested in buying an existing Quiznos restaurant, Quiznos has a number of immediate opportunities in several markets across the country. To learn more about these opportunities, fill out an application on this site and we will reach out to you shortly.

Quiznos competes in a thriving QSR market that still has significant space to expand. We’re uniquely positioned to thrive in business or industrial districts where customers can choose our brand as their lunch choice every day of the week. These sites, boasting a large daytime population with lunchtime business traffic, do very well. We are also looking for sites where there are high traffic counts with guests looking for a QSR dinner option.

For the ambitious entrepreneur, Quiznos is an excellent choice for opening multiple locations in one select area. The only limitation to our reach is the level of your drive. Ideal locations have good visibility to street traffic, as well as easy access by foot or car.

Our QSR concept works well in myriad spaces. You can purchase land and build your location from the ground up, you can lease property, you can purchase an existing building for conversion or you can build out an in-line or end cap restaurant. Our corporate team works closely with you during the site selection process to ensure the location meets our guidelines and will help set you up for success.

WHAT DOES QUIZNOS REQUIRE FROM A RESTAURANT LOCATION?Quiznos uses both state-of-the-art technology and old-school real estate savvy to determine which locations are ideally suited to sustain the success of Quiznos restaurant over the long-term. On a basic level, here is how we determine what makes a good location:

Visibility: Is the location visible to drivers from the road? Is the location visible to pedestrians on the street?

Access: Is the location easy to drive in and out of? Is the location easy to get to on foot?

Multiple Traffic Generators: Is this location already popular with people in the community? Is the location near other points of interest?

Lunchtime Traffic: Is this location a popular destination for the lunchtime crowd?

Catering Opportunities: Is this location near other businesses and residences?

Who Are We Looking For?QUIZNOS IS ACTIVELY SEEKING ENTREPRENEURS WITH A PASSION FOR OUR BRAND TO JOIN OUR GROWING FRANCHISE FAMILYWhen you walk into Adam Sinnard’s Quiznos location outside of Denver, you will be greeted by one of the most outgoing personalities in all of franchising. His love for our food, his customers, and his crew is genuine and his energy is infectious.

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Sinnard’s love for Quiznos began in high school and continues to this day as he currently owns three Quiznos franchise restaurants in the area surrounding Denver. His enthusiasm isn’t a fleeting thing, but something he works at constantly. He markets incessantly in the communities where his Quiznos restaurants are, including going to local businesses to grow his catering business. His efforts have paid off, as Sinnard is not only one of our top-performing franchisees, his passion for the Quiznos brand exemplifies the kind of personality needed to become successful in the sandwich business.

“I wake up every day really excited by the fact that I get to share Quiznos with so many people,” he says. “The corporate leadership is the best we’ve ever had, and they continually find ways to support us, encourage us, and help us grow. I’m on my third restaurant, and I’m looking to open another in 2018. It’s really the food that makes me so passionate. There’s just no other sandwich franchise that offers the level of quality, the chef-inspired recipes and the ability to have something deliciously toasted that Quiznos offers. I’m absolutely in love with our food. I love my team, and I love my customers. It’s incredibly rewarding to wake up and do something that I’m passionate about every single day.”

LOCAL MARKETING AND THE DRIVE TO BE ENGAGED WITH YOUR COMMUNITY IS ESSENTIAL TO YOUR SUCCESSThe type of outgoing personality that Sinnard personifies above is the essential quality needed to excel with the Quiznos brand. While we don’t require previous restaurant

experience, we do require that our franchisees are passionate about the Quiznos brand and more importantly, sharing their passion for our food with our community.This is intentional. People who spend money on restaurants want to patronize a place that makes them feel good, makes them feel welcome and where the energy from the crew is contagious, inviting and fun. As an owner, being a visible presence in your community is going to make your restaurant feel like the local restaurant that it is, helping you to grow sales as you get to know more and more of the people who live and work nearby.

“We are extremely focused on finding entrepreneurs with the drive to be a meaningful part of their communities,” says Mark Lohmann, Chief Brand Officer, with Quiznos.

“We know that the success of our franchisees is essential to the success of the Quiznos brand overall. Because of this, we have developed an intensive local marketing approach, which requires our franchisees to build relationships with their customers and their local small business community. Not only does this approach drive more customers to your restaurant, it grows both your catering segment and your third-party delivery segment as well.”

QUIZNOS IS A GREAT OPPORTUNITY FOR U.S. VETERANSMilitary veterans are uniquely qualified to franchise with Quiznos, as they have a proven ability to follow systems, procedures, and processes necessary to make any venture successful. Quiznos runs on systems. Implementing systems and following procedures with the precision emphasized in military training leads to success in franchising.

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How Do We Support Our Franchisees?OUR ROBUST TRAINING AND ONGOING EDUCATION IS DESIGNED TO HELP MAKE YOU A TOP-PERFORMING QUIZNOS FRANCHISEEFranchising with Quiznos means that you’re never alone in your business. We know that our brand appeals to folks who have only dreamed about someday owning their own Quiznos franchise, those without prior restaurant experience, first-time entrepreneurs who have never owned a business before, as well as veteran entrepreneurs who have owned several businesses in a wide variety of industries.

The truth is: franchising with Quiznos is easier than you think. While prior experience in the restaurant industry is welcome, it certainly isn’t required. What is required is that our franchisees have a passion for Quiznos, and the desire to share that passion with their communities.

“Quiznos is lucky because many of our top-performing franchisees were fans of the brand before they opened the doors to their Quiznos restaurants,” says Tim Casey, President and CEO. “We realized that these brand champions are the people that we want to recruit because while they may not have experience as a restaurant owner, they do have experience in loving our brand. Our training platform is one of the most robust in the entire sandwich franchise industry, and it is designed to help make our franchisees become top-performers over the long-term. The culture of our brand is franchisee centric, which means that our one and only goal is to help our franchisees thrive and prosper, and we provide them with the tools they need to make their dreams of success a reality.”

Because many of our franchisees come to us without any experience in the restaurant industry, Quiznos has developed

an intensive initial training and ongoing education platform to help our franchisees get established quickly and thrive over the long term. This is how we do it:

ONLINE TRAINING Once you become a franchisee, you will have access to our online training platform before you attend the three-week training session in Denver. These modules offer education about our brand, our recipes, how to prepare our sandwiches, information about our POS system, how to train employees and more. The online training platform becomes especially handy when you leave our training and are ready to open the doors to your new restaurant, giving you access to necessary information about your business no matter where you are in the country.

HANDS-ON TRAININGIn order to master your new business, you will don a Quiznos uniform and go to work at our heavily trafficked, corporate-owned Quiznos restaurant in Denver, Colorado, learning every aspect of the business: from how to prepare our delicious sandwiches, to how to offer exceptional customer service, to mastery of our brand new state-of-the-art POS system, to managing inventory, managing a crew and more. By the time you’re done working in our restaurant, you will be empowered with the experience necessary to make your new Quiznos franchise a success.

CLASSROOM TRAININGWhile you’re in Denver, you will also attend several classroom-style training sessions that are essential to becoming a prosperous business owner. We will teach you how to market your business effectively, including on social media platforms such as Twitter, Instagram and Facebook, and the tools needed to hit the pavement in your community to sell catering services to small businesses in your area. We

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QUIZNOS FRANCHISE REPORTalso teach you to read Profit and Loss statements, how to improve your financials and develop a business plan that will put you on the track for growth.

ONGOING COACHINGEvery week, your field representative will either visit with you or call you to ensure that you’re meeting the goals you set for your new businesses, as well as to answer any questions and address any issues as they pop up. This ongoing presence will provide you peace of mind, hold you accountable and help you scale effectively.

The Power of Quiznos Marketing SupportJOIN THE SANDWICH FRANCHISE THAT WILL HELP YOUR BUSINESS WIN THE HEARTS OF YOUR LOCAL COMMUNITYTo thrive as a Quiznos owner, you have to engage your neighborhood customers with targeted, local advertising. We believe your Quiznos operation should be an active part of the local community, and over 35 years of experience tells us that community connection plays a huge role in your success.

Just as Quiznos subs are the perfect combination of hot and toasty bread, delicious meats, and perfectly paired toppings, Quiznos marketing is the hottest combination of a local marketing focus with a nationwide digital presence.

Here’s a quick overview of our world-class marketing resources, all created to take advantage of the high-energy Quiznos brand image to help you succeed!

MANAGE LOCAL MARKETING WITH CONFIDENCE!You have access to a bounty of tools to best promote your Quiznos locations. With our state-of-the-art QMark online marketing system, in just a few clicks, you’ll discover dynamic and customizable marketing tools all designed to empower you to strongly sell to your local community.

This easy-to-use website lets you customize and tailor marketing materials to your location. You can either download a PDF to print locally or have marketing materials printed and shipped directly to you. Our Denver-based team backs your local efforts with marketing at the store level to build the Quiznos brand while engaging and thrilling hungry customers. QMark includes more than 200 pieces of customizable marketing collateral, including yard signs, window posters, menus, handouts, direct mail pieces; step-by-step outlines of local store marketing initiatives for you to execute right away to build business, including programs related to sampling, business-to-business sales, customer appreciation day, community events and more; Quiznos logos and product images; plus radio scripts tailored for each new product release. Franchises also have access to:

Online ordering and delivery fully integrated with our loyalty app, in-store Point of Sale, desktop and mobile sites.

Broad social media strategy and engagement.

Best-in-class SEO (search engine optimization) and dynamically generated local landing pages.

Custom marketing pieces.

Menu team dedicated to researching, testing and developing new recipes to WOW your customers.

OUR LOCAL FAN BASE 4 WALLS, 4 BLOCKS, 4 MILES - THAT’S WHERE QUIZNOS MARKETING GETS LOCAL!We’ve learned to focus our local marketing efforts within your 4 walls, your 4 neighborhood blocks and the 4 miles of hungry locals that surround your location.

In addition to QMark, we offer a wealth of additional local marketing opportunities, including:

Local events that drive new customers to your store, including Customer Appreciation Days and other local community event support.

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QUIZNOS FRANCHISE REPORT Local Facebook landing pages – We automatically create content for your local page, and you can post on it yourself to advertise local events.

Toasty Points Loyalty App – Reach your customers easily by pushing local offers directly to your local database of loyalty app users.

Location data synced with 1,000 third-party websites: Your store data is shared with third parties such as Google, so when a customer searches for “Quiznos,” they easily find your store location.

Local digital advertising – We find you the best customers near your store with the most effective tools, including geo-targeted search and advertising, YouTube advertising, promoted Facebook posts, Instagram advertising, and Twitter advertising.

Local search engine optimization (SEO) aimed to rank your site on search engines such as Google and business directories such as Yelp.

4-STAR APP + 500,000 = INSTANT & ONGOING ENGAGEMENTToday’s customers expect convenience and crave a connected, rewarding loyalty program. Quiznos integrated loyalty and online ordering app provides the convenience your customers demand and the rewards that keep them coming back for more toasty goodness! Our 4-star Quiznos Toasty Points app, available for free for all mobile devices, has been downloaded over half a million times!

As a franchise owner, you use a real-time dashboard to discover:

Total purchases and average spending by loyalty customers.

Reward redemptions.

Guest info – unique guests, average visits, repeat guests and new guests.

See reviews for your location.

Plus, the app allows you to create a custom marketing plan specific to your store’s Toasty Points members!

QUIZNOS GETS SOCIAL!Baffled at the thought of managing social media? Don’t worry – our corporate marketing team truly gets social and has the numbers to prove it!

Quiznos customers are active, vocal and always looking for their next hot and toasty sub. We can boast over 1 million Facebook followers, millions of email subscribers and tens of thousands of Twitter followers, plus nearly 500k Toasty Points loyalty and online ordering app downloads.

No need for social anxiety as a franchise owner –our corporate marketing gurus have it covered, delivering you engaged and satisfied customers. And month-by-month, Quiznos edges out the competition with the most engaged sub-lovers around!

MODERN DIGITAL MARKETING WITH A CUTTING-EDGE POS TO MATCHQuiznos digital marketing comes full circle with our state-of-the-art and fully integrated Point of Sale (POS) system.We keep you constantly connected to your most engaged customers while boosting business. Online ordering in the app itself lets you handle more orders, increases check average by giving customers more time to make decisions and improves ordering accuracy, all while rewarding customers for repeat purchases.

Mobile Pay through the app – Mobile pay (integrated with Apple Pay, Google Wallet, and Samsung Pay) speeds up payment time and lets customers earn valuable rewards, which ultimately drives overall sales volume.

Loyalty and ordering integration with your POS so you and your support team can track customer trends and send offers to customers based on what they typically order.

Complete with a full suite of tools to help you to best run your business, including labor and inventory reports.

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Meet the Quiznos Management TeamVISIONARY LEADERSHIP TEAM WITH PASSION FOR BRAND AND FRANCHISEE SUCCESS IS LEADING QUIZNOS

TIM CASEY PRESIDENT AND CEO

Tim is a restaurant industry veteran who brings a wealth of knowledge and an extensive track record enhancing economic models for franchise brands. Tim also previously served as president and CEO of PepperJax Grill and, prior to that, as president of Qdoba Mexican Grill. Earlier in his career, he was a Vice President at Starbucks Coffee Company.

PAT HILTON EXECUTIVE VICE PRESIDENT OPERTIONS AND DEVELOPMENT NORTH AMERICA

Pat is a 7 year Quiznos veteran and was recently been promoted to Executive Vice President Operations and Development North America. During his time with Quiznos, Pat has been instrumental in leading team to improve performance and efficiency. His team represents the first point of contact with existing franchisees those coming on board.

Since starting his restaurant careers in the kitchen, Pat has developed a keen attention to detail and an intimate knowledge of store level operations. With experience inside international

operators such as McDonalds and Burger King, Pat focus always has been and will be the well-being of franchisees as we grow store count and while driving traffic and transaction size.

ERIC GRUNDMEIER CHIEF SUPPLY OFFICER

Eric brings a wide-ranging background in supply chain and distribution. He most recently was an independent supply chain consultant, leading efforts for Rusty Taco, Naf Grill, and American Blue Ribbon Holdings LLC. Eric also previously served as Vice President of Supply Chain and QA for PepperJax; SVP of Manufacturing and Supply Chain for Einstein

Noah Restaurant Group; and Vice President of Supply Chain and QA for Del Taco.

QUIZNOS FRANCHISE REPORT

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TOM KURRIKOFF CHIEF FINANCIAL OFFICER

Tom brings decades of finance expertise to REGO. He previously served as CFO of TGI Fridays for 10 years, and before that spent 10 years heading up finance, accounting, real estate and operations positions for Blockbuster Inc. Tom also previously held various positions at Pizza Hut, Inc. and Burger King, where he led operations, strategic planning, finance, accounting

and controls, portfolio optimization, budgeting, new store development, financial reporting and analysis, acquisitions and divestitures, and direct P&L responsibility.

MARK LOHMANN CHIEF BRAND OFFICER

In this role, he is responsible for branding, marketing, strategy, and international development efforts for the portfolio. Prior to joining Rego, Mark was the EVP of Strategy and Chief Financial Officer for Cool Planet. Before that, Mark served as the Vice President of Strategy and Business Development for Qdoba Mexican Grill, where he initiated and executed a brand transformation. Prior to that, he was the Head of

Business Development and Chair of the Operating Committee for Konkola Copper Mines (subsidiary of Vedanta Resources) in Lusaka, Zambia.

Next StepsREADY TO BRING A QUIZNOS SANDWICH FRANCHISE TO YOUR COMMUNITY?Beginning the process of opening up your new Quiznos is easier than you may think. Once you submit your application, we will reach out to you to begin our validation process to determine if you’re a right fit for our brand. Once you’re qualified to join our growing franchise family, we will hit the ground running!

We will walk you through every aspect of your new life as a Quiznos franchise owner. Beginning with our month-long training program in Denver, Colorado, and all the way through your successful grand opening in your community, Quiznos will support you every step of the way.

Now is a great time to become a Quiznos franchise owner and if you’ve always dreamed of business ownership, we’re excited to help you accomplish your goals!

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QUIZNOS FRANCHISE REPORT

Privacy policy

Quiz Franchisor, LLC® understands the importance of protecting the privacy of its website users. The information collected is used to market and improve the services we offer, to improve the web site content, and to contact you with updates to the web site or for other marketing purposes.

Certain areas of this site, require registration or a password for access. Information obtained from registered users of these areas may also be used for Quiz Franchisor, LLC marketing purposes, and cookies may be used in those and other areas, as is described in this Policy. Information obtained in these areas may also be used in accordance with agreements governing access to and use of the specific areas. In addition, visitors of this website may choose to register for a Login user ID and password to simplify access to some interactive features on this website. Log file data and other information gathered from registered users of this website are used to improve the customer experience while on our website.

What information does Quiz Franchisor, LLC capture about visitors to its web site?

Our web server uses an extended log file format which captures: date and time of visit, referring address (location from which a visitor comes to this website), type of Internet browser, and visitor’s IP address. (Each computer that connects to the Internet is assigned a unique number, an IP address, for identification purposes). The log file does not capture a visitor’s email address.

Does Quiz Franchisor, LLC ask for personal information?

Several areas of this website may ask for personal information. In these areas, your name, address, email address, billing information, and business profile are requested. This information is collected to help us further develop our services, to provide you access to valuable Quiz Franchisor, LLC Internet-based information and services, and to bill you for those services if you elect to use them.

Does Quiz Franchisor, LLC share my information?

We may disclose personally identifying information (PII) about you:

• With our service providers: We contract with companies who help with parts of our business operations. We require that our service providers only use your PII in connection with the services they perform for us.

• With service providers to our Advertisers: Our Advertisers may contract with companies who handle data (such as Advertisers’ customer lists) for them.

• With our subsidiaries and related companies• In connection with legal proceedings: When we are under a legal obligation to do so, for example to comply with

a binding order of a court, or where disclosure is necessary to exercise, establish or defend the legal rights of Quiz Franchisor, LLC, our Advertisers or any other third party.

• In connection with a sale of our business: If a third party acquires some or all of our business or assets, we may disclose your PII in connection with the sale.

We also share technical data that we collect about your browsing habits and your device (such as data relating to our cookies, tracking pixels and similar technologies) with other advertising companies in the digital advertising ecosystem. This enables them and us to better target ads to you.

Finally, we may disclose aggregated, anonymized information to our Advertisers and other third parties.

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How does Quiz Franchisor, LLC use the information?

The information collected through this site helps us identify the type of web site content our customers value most. We use this information to market and improve the web site and our services. We also use this information to send you email notifications about updates to the web site, and to contact you by other means for marketing and other purposes. Our policy is to not give, sell or otherwise distribute the information collected through this site to third parties outside of Quiz Franchisor, LLC (unless required by law); provided, however, in some cases we may use suppliers to assist us in collecting, using or otherwise processing for our benefit the information obtained through this site. Our practice is to require our suppliers to conduct such activities consistent with this policy and our requirements.

What is a cookie?

A cookie is a series of data characters that, when programmed into a web site, is placed by the web server into the browser’s application folder on your computer. Once placed onto your machine, the cookie will allow the web site to “recognize” you as a unique individual.

Does Quiz Franchisor, LLC use cookies?

Cookies are used to achieve two goals. The first is to provide Quiz Franchisor, LLC with the capability to personalize information for certain segments of its customer base. Secondly, in some instances, cookies are used to allow Quiz Franchisor, LLC the opportunity to associate individual customers with their information profiles. For example, through the use of cookies, the website can “remember” your user ID when you login to Quiz Franchisor, LLC at this website on your computer.

Can cookies be removed from my hard drive?

Yes, cookies can be removed from your hard drive. Also, depending on what type of web browser and what browser version you are using, you may be able to change the properties on your cookie file so that cookies are not used or saved. Please check with your browser provider for more information on removing cookies.

Can I opt out from receiving further communication?

We recognize how important your online privacy is to you, so we offer the following options for controlling the targeted ads you receive and how we use your data:

• You can opt-out of receiving targeted ads served by us: You can opt out of receiving targeted ads served by us or on our behalf by clicking on the blue icon in the corner of the ads we serve. Please note that, if you delete your cookies or upgrade your browser after having opted out, you will need to opt out again. Further, if you use multiple browsers or devices you will need to execute this opt out on each browser or device.

• You can opt-out of receiving targeted ads from us or other companies: You may use the Network Advertising Initiative (NAI) opt out tool at http://www.networkadvertising.org/choices/, which will allow you to opt out of seeing targeted ads from us and from NAI approved member companies.

You may opt out of receiving targeted ads from other companies that perform ad targeting services by visiting the DAA website at http://www.aboutads.info/choices/ and Your Online Choices website at http://www.youronlinechoices.com/.

Quiz Franchisor, LLC reserves the right to amend the Privacy Policy at any time with or without notice. Please check back frequently in the event of changes. Your use of this website constitutes your agreement to this Privacy Policy.

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