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FRANCHISE DISCLOSUREDOCUMENT
March 27, 2009
 
QFA (Unit) FDD (03/2009) v5
 
FRANCHISE DISCLOSURE DOCUMENT
 
QFA ROYALTIES LLC
 (a Delaware limited liability company)1001 17
th
StreetSuite 200Denver, Colorado 80202Telephone: (720) 359-3300www.quiznos.com quiznosfranchises.com
 
QFA Royalties LLC (“
we
” or “
us
”) is offering franchises to operate a restaurant offering submarine andother sandwiches, salads, soups, soft drinks and related other products under the service mark “QUIZNOS” and “QUIZNOS SUB.”The following summarizes the total investment required for each type of QUIZNOS Restaurant:
Traditional QUIZNOSRestaurantLow/High RangeNon-TraditionalQUIZNOS RestaurantLow/High RangeNon-TraditionalQUIZNOS KioskLow/High RangeNon-TraditionalQUIZNOS CoolerLow/High Range
$207,130 - $341,280(including $123,330 to$157,280 payable tofranchisor or its affiliate)$85,255 - $328,340(including $63,430 to$108,790 payable tofranchisor or its affiliate)$76,500 - $179,500(including $60,000 to$95,500 payable tofranchisor or its affiliate)$23,607 - $49,507(including $21,307 to$40,507 payable tofranchisor or its affiliate)
This Disclosure Document summarizes certain provisions of your franchise agreement and otherinformation in plain English. Read this Disclosure Document and all accompanying agreementscarefully. You must receive this Disclosure Document at least 14 calendar days before you sign a bindingagreement with, or make any payment to, the franchisor or an affiliate in connection with the proposedfranchise sale.
Note, however, that no government agency has verified the information contained inthis document.
 You may wish to receive your Disclosure Document in another format that is more convenient for you.To discuss the availability of disclosures in different formats, contact Deborah Sargent, 1001 17
th
Street,Suite 200, Denver, Colorado 80202, (720) 931-2215,dsargent@quiznos.com.The terms of your contract will govern your franchise relationship. Don’t rely on the DisclosureDocument alone to understand your contract. Read all of your contract carefully. Show your contractand this Disclosure Document to an advisor, like a lawyer or an accountant.Buying a franchise is a complex investment. The information in this Disclosure Document can help youmake up your mind. More information on franchising, such as “
 A Consumer’s Guide to Buying aFranchise
,” which can help you understand how to use this Disclosure Document, is available from theFederal Trade Commission. You can contact the FTC at 1-877-FTC-HELP or by writing to the FTC at600 Pennsylvania Avenue, NW, Washington, D.C. 20580. You can also visit the FTC’s home page atwww.ftc.govfor additional information. Call your state agency or visit your public library for othersources of information on franchising.There may also be laws on franchising in your state. Ask your state agencies about them.
ISSUANCE DATE: MARCH 27, 2009.
 
QFA (Unit) FDD (03/2009) v5
 
STATE COVER PAGE
Your state may have a franchise law that requires a franchisor to register or file with a state franchiseadministrator before offering or selling in your state. REGISTRATION OF A FRANCHISE BY ASTATE DOES NOT MEAN THAT THE STATE RECOMMENDS THE FRANCHISE OR HASVERIFIED THE INFORMATION IN THIS DISCLOSURE DOCUMENT.Call the state franchise administrators listed in Exhibit A for information about the franchisor, or aboutfranchising in your state.MANY FRANCHISE AGREEMENTS DO NOT ALLOW YOU TO RENEW UNCONDITIONALLYAFTER THE INITIAL TERM EXPIRES. YOU MAY HAVE TO SIGN A NEW AGREEMENT WITHDIFFERENT TERMS AND CONDITIONS IN ORDER TO CONTINUE TO OPERATE YOURBUSINESS. BEFORE YOU BUY, CONSIDER WHAT RIGHTS YOU HAVE TO RENEW YOURFRANCHISE, IF ANY, AND WHAT TERMS YOU MIGHT HAVE TO ACCEPT IN ORDER TORENEW.Please consider the following RISK FACTORS before you buy this franchise:1.
 
THE FRANCHISE AGREEMENT REQUIRES YOU TO RESOLVE DISPUTES WITH US BYLITIGATION ONLY IN COLORADO. ALSO, ANY LEGAL ACTION THAT WE BRINGAGAINST YOU WILL BE FILED ONLY IN COLORADO. OUT OF STATE LITIGATIONMAY FORCE YOU TO ACCEPT A LESS FAVORABLE SETTLEMENT FOR DISPUTES. ITALSO MAY COST YOU MORE TO LITIGATE WITH US IN COLORADO THAN IN YOURHOME STATE.2.
 
THE FRANCHISE AGREEMENT STATES THAT COLORADO LAW GOVERNS THEAGREEMENT, AND THIS LAW MAY NOT PROVIDE THE SAME PROTECTIONS ANDBENEFITS AS LOCAL LAW. YOU MAY WANT TO COMPARE THESE LAWS.3.
 
DURING 2008, WE TERMINATED 823 FRANCHISE AGREEMENTS BECAUSE THERESTAURANT HAD NOT OPENED WITHIN 12 MONTHS OF SIGNING THE FRANCHISEAGREEMENT, WHICH REPRESENTED 59.81% OF THE FRANCHISES THAT HAD NOTOPENED AS OF JANUARY 1, 2008. ADDITIONALLY, APPROXIMATELY 11.16% OFTHE FRANCHISES OPERATING AS OF DECEMBER 31, 2008 TRANSFERRED THEIRFRANCHISES AND AN ADDITIONAL 13.88% WERE TERMINATED OR OTHERWISELEFT THE SYSTEM.4.
 
AS OF DECEMBER 31, 2008, 352 QUIZNOS FRANCHISEES HAD NOT OPENED THEIRRESTAURANTS WITHIN 12 MONTHS OF SIGNING THE FRANCHISE AGREEMENT.THIS NUMBER REPRESENTS APPROXIMATELY 66.9% OF ALL FRANCHISEES WHOHAD NOT OPENED A RESTAURANT AS OF THAT DATE. THE TYPICAL TIME TOOPEN A RESTAURANT IS 12 TO 24 MONTHS. THE FRANCHISE AGREEMENTREQUIRES YOU TO OPEN WITHIN 12 MONTHS AFTER YOU SIGN THE FRANCHISEAGREEMENT. WE HAVE SOLE DISCRETION TO TERMINATE YOUR FRANCHISEAGREEMENT IF YOU DO NOT OPEN YOUR RESTAURANT WITHIN 12 MONTHSAFTER YOU SIGN THE FRANCHISE AGREEMENT. THE INITIAL FRANCHISE FEE ISNONREFUNDABLE.5.
 
THE FRANCHISE AGREEMENT PERMITS US AND OUR AFFILIATES TO ESTABLISHOTHER FRANCHISED OR COMPANY-OWNED LOCATIONS AT ANY LOCATIONOTHER THAN YOUR FRANCHISED LOCATION, TO SELL OR DISTRIBUTE ANY
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