Document:

form10ksbfiling_9302000.htm

                        THE QUIZNO'S FRANCHISE COMPANY

                              FRANCHISE AGREEMENT

                        THE QUIZNO'S FRANCHISE COMPANY
                              FRANCHISE AGREEMENT
                               TABLE OF CONTENTS

EXHIBITS

1  Addendum -- Location and Initial Franchise Fee
2  Addendum -- QUIZNO'S Classic Subs Express Facility
3  Addendum -- Special Products Program
4     Authorization Agreement for Prearranged Payments
5     Statement of Ownership
6     Guaranty and Assumption of Franchisee's Obligations
7     Addendum -- Bookkeeping Services
8     Addendum -- Maximum Borrowing Commitment

FRANCHISE:-----------------------
ADDRESS:-------------------------

EFFECTIVE
DATE:----------------------------

      THIS  AGREEMENT  (the  "Agreement")  is between THE  QUIZNO'S  FRANCHISE
COMPANY,  a Colorado  corporation  located  at 1415  Larimer  Street,  Denver,
Colorado   80202    ("Franchisor"),    and   the   franchisee   listed   above
("Franchisee"), who agree as follows:

PURPOSE

1.1   Franchisor and its affiliates have developed  methods for  establishing,
operating,  and promoting restaurants offering submarine  sandwiches,  salads,
other food  products  and  beverages,  and  related  restaurant  and carry out
services ("QUIZNO'S Restaurants" or "Restaurants"),  which include the use and
license of certain  valuable trade names,  service marks,  and trademarks (the
"Marks")  owned  by The  Quizno's  Corporation  ("TQC"),  Franchisor's  parent
company, and licensed to Franchisor,  including the Mark "QUIZNO'S," and TQC's
distinctive techniques,  expertise, and knowledge in establishing,  operating,
and promoting  restaurants and related licensed methods of doing business (the
"Licensed Methods").

1.2   Franchisor   grants  the  right  to  others  to  establish  and  operate
Restaurants under the Marks and using the Licensed Methods.

1.3   Franchisee  recognizes and  acknowledges the benefits to be derived from
being  identified and associated  with  Franchisor,  and being able to utilize
the  Restaurant  system and  concepts,  and  therefore  desires to establish a
Restaurant at an approved location.  Franchisor is willing to grant Franchisee
the right to operate a Restaurant under the terms and conditions  contained in
this Agreement.

GRANT OF FRANCHISE

      0.1   Grant  of  Franchise.   Franchisor   grants  to  Franchisee,   and
Franchisee  accepts from  Franchisor,  the right to use the Marks and Licensed
Methods in  connection  with  establishing  and  operating a Restaurant at the
location  described  in  Section 3.  Franchisee  agrees  to use the  Marks and
Licensed  Methods,  as they are changed,  improved,  and further  developed by
Franchisor and its affiliates  from time to time,  only in accordance with the
terms and conditions of this Agreement.

      0.2   Scope of  Franchise  Operations.  Franchisee  agrees  at all times
faithfully,  honestly,  and diligently to perform its  obligations  under this
Agreement,  to use best efforts to promote its  Restaurant,  and not to engage
in any other  business or activity  that  conflicts  with the operation of the
Restaurant in compliance  with this  Agreement.  Franchisee  agrees to utilize
the  Marks and  Licensed  Methods  to  operate  all  aspects  of  Franchisee's
Restaurant  in  accordance   with  the  methods  and  systems   developed  and
prescribed  from  time to time by  Franchisor,  all of which are a part of the
Licensed  Methods.  Franchisee's  Restaurant  shall  offer  all  products  and
services  designated by Franchisor.  Franchisee  shall implement any additions
and  changes to the  products  and  services  offered by its  Restaurant  that
Franchisor requires.

                    1.  FRANCHISED LOCATION AND TARGET AREA

      1.1   Franchised  Location.  Franchisee  is granted the right to own and
operate  a  Restaurant  at  a  specific  address  and  location   ("Franchised
Location").   Franchisee   shall   choose  and  acquire  a  location  for  its
Restaurant  within  the  nonexclusive  Target  Area set  forth  in  Exhibit 1.
Franchisee  shall  select and propose to  Franchisor  for  approval a specific
site for the Franchised  Location in the Target Area,  which  Franchisor shall
have the right to  approve  or  disapprove  in  accordance  with the terms set
forth  in  this  Agreement.   Franchisee  acknowledges  and  agrees  that  the
Franchised  Location  will be a specific  numbered  street or mall  address at
which  Franchisee’s  Restaurant  will be physically  located.  The "Franchised
Location"  cannot  and  will not  under  any  circumstances  be  defined  as a
geographic  area or be  described  in terms  other  than a  specific  numbered
street or mall  address.  During the term of this  Agreement,  the  Franchised
Location shall be used exclusively to operate a Restaurant.

      1.2   Limitation on Franchise  Rights.  The rights granted to Franchisee
are for the  specific  Franchised  Location and cannot be  transferred  to any
other location,  except with Franchisor's  prior written  approval.  The Marks
and Licensed Methods are licensed only for the Franchised Location.

      1.3   Express  Restaurants.  Franchisee  may not  operate  a  Restaurant
located within a host facility (such as a gas station,  convenience  store, or
hotel),  in another  "non-traditional"  venue,  or at any other location where
the operation of the Restaurant will,  because of its location,  vary from the
operation  of  a   traditional   Restaurant   (all  referred  to  as  "Express
Restaurants"),  except with Franchisor's prior written consent,  in which case
Franchisor and Franchisee shall execute  Exhibit 2 (if this Agreement  governs
the operation of a traditional Restaurant,  the Express Restaurant(s) shall be
governed  by  a  separate  Franchise  Agreement).  Franchisor  will  determine
whether a proposed Restaurant should be classified as an Express Restaurant.

      1.4   Special  Products.   From  time  to  time,  Franchisor  may  offer
supplemental  programs to be  incorporated  in certain  Restaurants  ("Special
Products").   Franchisee   may  not  offer  a  Special   Product  except  with
Franchisor's   prior  written   permission,   in  which  case  Franchisor  and
Franchisee shall execute Exhibit 3.

      1.5   Franchisor's  Reservation of Rights.  Franchisee acknowledges that
the franchise  granted under this Agreement is  nonexclusive,  that Franchisee
has no  territorial  protection,  and that  Franchisor,  TQC, and all of their
affiliates  retain the right:  (1) to use,  and to license  others to use, the
Marks and Licensed  Methods for the operation of  Restaurants  at any location
other than the Franchised Location;  (2) to use the Marks and Licensed Methods
in connection with services and products,  promotional  and marketing  efforts
or related items, or in alternative  channels of distribution,  without regard
to location;  (3) to use and license the use of alternative  proprietary marks
or  methods  in  connection   with  the  operation  of  restaurants  or  other
businesses  under  names which are not the same as or  confusingly  similar to
the Marks,  which  businesses  may be the same as, or similar to, or different
from  Restaurants;  and (4) to  engage in any other  activities  not expressly
prohibited in this Agreement.

                           2.  INITIAL FRANCHISE FEE

      2.1   Initial  Franchise  Fee.  Franchisee  agrees to pay to Franchisor,
concurrently  with signing this Agreement,  an initial franchise fee ("Initial
Franchisee   Fee")  in  the   amount  set  forth  in   Exhibit 1.   Franchisee
acknowledges and agrees that the Initial Franchise Fee represents  payment for
the initial  grant of the right to use the Marks and  Licensed  Methods,  that
Franchisor  has earned the Initial  Franchise Fee upon  receipt,  and that the
Initial Franchise Fee is not refundable to Franchisee after it is paid.

                                 3.  ROYALTIES

      3.1   Royalty.  Franchisee  will  pay to  Franchisor  a  weekly  royalty
("Royalty")  equal to seven  percent  (7%) of the  total  amount  of its Gross
Sales, defined in Section 5.2, generated from or through its Restaurant.

      3.2   Gross  Sales.  "Gross  Sales" is  defined as sales of any kind for
all services or products  from or through the  Restaurant,  including any sale
of services or products  made for cash or upon credit,  or partly for cash and
partly for credit,  regardless  of  collection  of charges for which credit is
given,  and regardless of whether such sale is conducted in compliance with or
in  violation of the terms of this  Agreement,  or whether such sale is at the
Franchised Location or off-site,  but exclusive of discounts,  sales taxes, or
other  similar  taxes and  credits.  Gross Sales also  include the fair market
value of any  services  or  products  received  by  Franchisee  in  barter  or
exchange for its services and products.

      3.3   Royalty  Payments.  Royalty  payments will be paid weekly and sent
to  Franchisor  by  electronic  funds  transfer,  due  on  Thursday  (for  the
preceding  Monday  through Sunday  period),  or such other specific day of the
week which  Franchisor  designates  from time to time ("Due  Date").  Upon the
request of  Franchisor  and in no event later than thirty (30) days before the
Restaurant opens, Franchisee shall execute an Authorization  Agreement, in the
form  attached to this  Agreement as Exhibit 4, for  preauthorized  payment of
Royalty  payments,  and other amounts due from Franchisee under this Agreement
or otherwise,  by electronic  transfer of funds from Franchisee's bank account
to  Franchisor's  bank account.  On the Due Date each week,  Franchisee  shall
report to Franchisor by telephone,  electronic  means,  or in written form, as
Franchisor  directs  (as more fully  described  in Section  15),  Franchisee's
Gross  Sales  and  such  additional   information   requested  by  Franchisor.
Franchisor  shall have the right to verify such Royalty  payments from time to
time as it deems necessary in any reasonable  manner.  If Franchisee  fails to
have  sufficient  funds in its account or otherwise fails to pay any Royalties
due as of the Due Date,  Franchisee  shall owe, in addition to such Royalties,
a late charge  equivalent  to two percent  (2%) per month of any late  Royalty
payment; provided,  however, in no event shall Franchisee be required to pay a
late payment at a rate greater than the maximum  commercial  contract interest
rate permitted by applicable law.

      Franchisor  may require  Franchisee to pay the Royalty and other amounts
due  under  this  Agreement  by means  other  than  automatic  debit  whenever
Franchisor   deems   appropriate,   and  Franchisee   agrees  to  comply  with
Franchisor's payment instructions.

      3.4   Application   of   Payments.   Notwithstanding   any   designation
Franchisee  might make,  Franchisor  may apply any payments made by Franchisee
to  any  of   Franchisee's   past  due   indebtedness  to  Franchisor  or  its
affiliates.  Franchisee  acknowledges that Franchisor has the right to set-off
any amounts  Franchisee owes Franchisor or its affiliates  against any amounts
Franchisor or its affiliates might owe Franchisee.

                    4.  DEVELOPMENT OF FRANCHISED LOCATION

      4.1   Approval  of  Franchised   Location.   Franchisee  may  operate  a
QUIZNO'S  Restaurant  only at a site approved by  Franchisor,  which  approval
will  not  be  unreasonably  withheld  if the  site  meets  Franchisor's  site
selection  criteria.  Franchisee  shall  follow  Franchisor's  site  selection
procedures in locating a Franchised  Location for the  Restaurant.  Franchisee
shall submit a completed site submittal  package,  including  demographics and
other   materials   requested  by  Franchisor,   containing  all   information
reasonably required by Franchisor to assess a proposed Franchised Location.

      4.2   Lease  Approval.   Franchisee  shall  obtain   Franchisor's  prior
written  approval  before  executing  any lease or purchase  agreement for the
Franchised   Location.   Prior  to  its   execution,   Franchisee's   proposed
Franchised  Location  lease must be reviewed and  certified as  acceptable  by
Franchisor.  Such  review is for the  benefit of  Franchisor,  and  Franchisee
acknowledges  that  Franchisor's  review  and  approval  of a  lease  for  the
Franchised  Location  do not  constitute  a  recommendation,  endorsement,  or
guarantee by Franchisor of the  suitability of the Franchised  Location or the
lease,  and Franchisee  should take all steps  necessary to ascertain  whether
such  Franchised  Location  and  lease  are  acceptable  to  Franchisee.  Upon
submission of a proposed  Franchised  Location for the Restaurant,  Franchisee
shall pay  Franchisor  or its  designated  supplier a lease  review fee of One
Thousand Four Hundred Fifty Dollars  ($1,450)  ("Lease Review Fee"). The Lease
Review  Fee pays  the  expenses  incurred  to  review  and (if  Franchisor  so
chooses) to negotiate  certain  provisions  of the lease.  Franchisee is not a
third-party beneficiary of the lease negotiation or review.  Franchisee agrees
that  Franchisor  does not  guarantee  that the terms,  including  rent,  will
represent  the most  favorable  terms  available  in that  market.  Franchisor
shall  charge  Franchisee  only one (1) Lease  Review  Fee  unless  Franchisee
refuses to sign a lease that  Franchisor  has certified as acceptable  for the
Franchised Location,  and Franchisor then is required to engage in one or more
additional  lease  reviews  for  the  Franchised   Location,   in  which  case
Franchisee  shall pay Franchisor a Lease Review Fee for the first lease review
as well as a Lease Review Fee for each additional lease review.

      4.3   Lease  Assistance  Program.  If  Franchisee  participates  in  the
"Lease Assistance  Program," then, once Franchisor has approved the Franchised
Location,  Franchisor or one of its  affiliates  will enter into  negotiations
with the Franchised  Location's  landlord  ("Master  Landlord") and,  assuming
such  negotiations  are  successful,  enter  into a lease  for the  Franchised
Location  ("Master  Lease'').  The Lease  Review Fee will be Two  Thousand Two
Hundred  Dollars  ($2,200).  Franchisee  then  agrees to enter into a sublease
with Franchisor or its designated affiliate  ("Sublease") in substantially the
same form as attached to  Franchisor's  Uniform  Franchise  Offering  Circular
("UFOC").  The Sublease  shall  incorporate  the terms and  conditions  of the
Master Lease,  including rent and other charges.  Default of the Sublease will
constitute  default of this  Agreement,  and  default of this  Agreement  will
constitute default of the Sublease.  Franchisee acknowledges that Franchisor's
approval of a lease for the Franchised  Location,  and  Franchisor's or one of
its   affiliates'   execution   of  the   Sublease,   do  not   constitute   a
recommendation,  endorsement,  or guarantee by  Franchisor or the affiliate of
the  suitability of the Franchised  Location or the terms of the Master Lease,
and  Franchisee  should take all steps  necessary  to  ascertain  whether such
Franchised  Location and lease terms are acceptable to Franchisee.  Franchisor
shall  charge  Franchisee  only one (1) Lease  Review  Fee  unless  Franchisee
refuses to sign a lease that  Franchisor  has certified as acceptable  for the
Franchised Location,  and Franchisor then is required to engage in one or more
additional  lease  reviews  for  the  Franchised   Location,   in  which  case
Franchisee  shall pay Franchisor a Lease Review Fee for the first lease review
as well as a Lease Review Fee for each additional lease review.

      4.4   Schedule.  Franchisee  shall execute a lease no later than one (1)
year from the date this Agreement is signed.  Franchisor  will extend the time
which  Franchisee has to obtain an executed lease for the Franchised  Location
for one (1) three (3) month period in the event  factors  beyond  Franchisee's
reasonable control prevent  Franchisee from meeting this deadline,  so long as
Franchisee has made  reasonable  and  continuing  efforts to obtain and submit
for  approval  an  acceptable  site and  Franchisee  requests  in  writing  an
extension  of time  before the end of the one (1) year  period.  Any lease for
the  Franchised  Location  shall be  collaterally  assigned to  Franchisor  as
security  for   Franchisee's   performance  of  its  obligations   under  this
Agreement.  Franchisee  shall  deliver  a copy  of the  signed  lease  for the
Franchised Location to Franchisor within five (5) days after it is signed.

      4.5   Conversion and Design.  Franchisee  acknowledges  that the layout,
design,  decoration,  and color scheme of Restaurants  are an integral part of
Franchisor's proprietary Licensed Methods, and, accordingly,  Franchisee shall
convert and decorate the Franchised  Location in accordance with  Franchisor's
plans, designs, and specifications.  Franchisee also shall obtain Franchisor's
written  consent to any  conversion,  design,  or decoration of the Franchised
Location  before  remodeling  or  decorating  begins,  recognizing  that  such
remodeling  and  decoration,  and any related  costs,  are  Franchisee's  sole
responsibility.

      4.6   Signs.  Franchisee  shall purchase or otherwise  obtain for use at
the  Franchised  Location and in connection  with the  Restaurant  the maximum
number and size of signs allowed by  applicable  building  codes,  which signs
shall  comply  with   Franchisor's   standards  and   specifications.   It  is
Franchisee's  sole  responsibility  to  ensure  that  all  signs  comply  with
applicable  local  ordinances,  building codes,  and zoning  regulations.  Any
modifications to Franchisor's  standards and  specifications  for signs due to
local  ordinances,  codes, or regulations shall be submitted to Franchisor for
prior written approval.  Franchisee  acknowledges that the Marks, or any other
name,  symbol,  or  identifying  marks on any  signs,  shall  be used  only in
accordance  with  Franchisor's  standards  and  specifications  and only  with
Franchisor's prior written approval.

      4.7   Equipment.  Franchisee  shall purchase or otherwise obtain for use
in connection with the Restaurant the equipment,  including  delivery vehicles
(if utilized) and computer  hardware and software,  of a type and in an amount
which complies with Franchisor's  standards and  specifications  and only from
suppliers or other sources  approved by  Franchisor.  Franchisee  acknowledges
that the type,  quality,  configuration,  capability,  and  performance of the
Restaurant  equipment are all standards and specifications which are a part of
the  Licensed  Methods.  Franchisee  shall  purchase  or lease  for use in the
Restaurant an electronic cash register or computer system ("System")  approved
by  Franchisor  that  accurately  records  every  sale or  other  transaction.
Franchisee  shall  purchase,  or  Franchisor  or an  affiliate  may license to
Franchisee  for  the  license  fee  it  determines,  software  to be  used  by
Franchisee  in  conjunction  with the  System.  Franchisee  shall  submit  any
required  reports  in a format  designated  from  time to time by  Franchisor.
Franchisee  grants  Franchisor  the right to access  the  System and to obtain
sales,  sales mix,  and revenue  information  directly by modem or  otherwise.
Franchisee  acknowledges  that Franchisor  will use information  from required
reports primarily to make business and marketing  decisions.  Franchisee shall
be  obligated  to  upgrade  or  update  the  System  and  the   software,   at
Franchisee's  sole  cost,  to meet  Franchisor's  then-current  standards  and
specifications and to address  technological  developments or events,  such as
"Year  2000"  related  issues.  Franchisor  has  no  obligation  to  reimburse
Franchisee for any of these costs.

      4.8   Permits  and  Licenses.  Franchisee  agrees to obtain all  permits
and  licenses  required  for the  lawful  construction  and  operation  of its
Restaurant  together  with  all  certifications  from  government  authorities
having  jurisdiction  over the Franchised  Location that all  requirements for
construction  and  operation  have been met,  including,  without  limitation,
zoning,  access,  sign, health,  fire, and safety  requirements;  building and
other required construction permits; licenses to do business;  fictitious name
registrations;  sales tax permits;  health and sanitation permits; and ratings
and fire clearances.  Franchisee  agrees to obtain all customary  contractors'
sworn  statements  and  partial  and  final  lien  waivers  for  construction,
remodeling,  decorating,  and  installation  of  equipment  at the  Franchised
Location.  Franchisee  shall  keep  copies  of  all  health  department,  fire
department,  building department, and other reports of inspections on file and
available for inspection by Franchisor.  Franchisee shall immediately  forward
to Franchisor  any such reports or  inspections  in which  Franchisee has been
found not to be in compliance with the underlying regulation.

      4.9   Commencement  of Operations.  Unless  otherwise  agreed in writing
by Franchisor and Franchisee,  Franchisee has twelve (12) months from the date
of this  Agreement  (which may be  extended  three (3) months as  provided  by
Section 6.4) within which to complete the initial training program,  described
in Section 7.1,  and commence  operation of the Restaurant.  Franchisee  shall
obtain the written consent of Franchisor prior to commencing  operation of the
Restaurant,  which consent shall not be unreasonably  withheld,  but cannot be
granted until  Franchisor has approved the Franchised  Location and Franchisee
has:  (1) successfully  completed the initial training  program;  (2) paid all
fees  and  other  amounts  due  to  Franchisor;  (3) furnished  copies  of all
insurance policies required by this Agreement;  (4) built out and equipped the
Franchised   Location  in   accordance   with   Franchisor's   standards   and
specifications   and  received  a  QUIZNO'S   certificate  of  occupancy  from
Franchisor;  (5) purchased an inventory of approved products and supplies; and
(6) otherwise  completed  all other aspects of  developing  the  Restaurant as
Franchisor has reasonably required.

                                 5.  TRAINING

      5.1   Initial  Training  Program.  Franchisee  (or, if  Franchisee  is a
corporation,   partnership,   or  limited  liability  company,   its  managing
shareholder,  partner, or member ("Managing Owner")) and the person designated
by Franchisee to assume  primary  responsibility  for managing the  Restaurant
("Designated  Manager")  must  attend and  successfully  complete  the initial
training  program  offered by  Franchisor  at one of  Franchisor's  designated
training  facilities.  Up to three (3)  individuals  (including  the  Managing
Owner and  Designated  Manager) are eligible to  participate  in  Franchisor's
initial training  program without paying any tuition or fee.  Franchisee shall
be  responsible  for  any and all  travel  and  living  expenses  incurred  in
connection  with attending the training  program as well as wages or salaries,
if any, of the  person(s)  receiving  training.  Franchisee  (or its  Managing
Owner) and the  Designated  Manager  must  successfully  complete  the initial
training   program  before   Franchisee   begins   operating  the  Restaurant.
Franchisor  reserves  the  right to waive  all or a  portion  of the  training
program or alter the training schedule

      Franchisee  (or its  Managing  Owner)  and its  Designated  Manager  may
request  additional  training  during  the  initial  training  program,  to be
provided at no additional  charge,  if Franchisee (or its Managing  Owner) and
the Designated  Manager do not feel  completely  trained in the operation of a
QUIZNO'S  Restaurant.  However,  if Franchisee (or its Managing Owner) and the
Designated  Manager  satisfactorily  complete  Franchisor's  initial  training
program,  and do not inform  Franchisor  in writing at the end of the  initial
training  program that  Franchisee (or its Managing  Owner) and the Designated
Manager  do not  feel  completely  trained  in  the  operation  of a  QUIZNO'S
Restaurant,  then Franchisee will be deemed to have been trained  sufficiently
to operate a QUIZNO'S Restaurant.

      5.2   Additional  Training  Programs.  Franchisor  reserves the right to
conduct  training  programs or  seminars  at  locations  to be  determined  by
Franchisor  to discuss  relevant  business  trends  and share new  information
relating to the  Restaurant  business.  Attendance  at the seminar is optional
unless  Franchisor  gives  Franchisee at least thirty (30) days' prior written
notice  that the  seminar  is  mandatory,  in which  case  Franchisee  (or its
Managing  Owner) or its Designated  Manager is required to attend.  Franchisor
shall not  require  Franchisee  to attend any  on-going  training  programs or
seminars  more than four (4) times a year.  Each  mandatory  training  program
and  seminar  shall  not last more than  three  (3) days.  All such  mandatory
training  will  be  offered  without  tuition  or a  fee;  provided,  however,
Franchisee  will be  responsible  for any and all  transportation  and  living
expenses incurred in attending such additional training programs or seminars.

                             6.  OPERATIONS MANUAL

      6.1   Operations  Manual.  Franchisor  agrees to loan to Franchisee  one
(1) or more  manuals,  technical  bulletins,  or other  written or  videotaped
materials  (collectively  referred to as  "Operations  Manual")  covering  the
Restaurant's  operating and marketing  techniques  and any Special  Product(s)
applicable  to the  Restaurant.  Franchisee  agrees that it shall  comply with
the  Operations  Manual as an  essential  part of its  obligations  under this
Agreement.  Franchisee  shall at all times be  responsible  for ensuring  that
its  employees  and all  other  persons  under  its  control  comply  with the
Operations  Manual  in  all  respects.  Franchisee  shall  not  duplicate  the
Operations  Manual nor disclose its contents to persons  other than  employees
or officers who need the information to perform their jobs.

      6.2   Changes to  Operations  Manual.  Franchisor  reserves the right to
revise  the  Operations  Manual  from  time to time as it deems  necessary  to
update operating and marketing  techniques or standards and  specifications in
any manner,  including updates contained in monthly  newsletters.  Franchisee,
within  thirty (30) days after  receiving  any updated  information,  shall in
turn update its copy of the Operations  Manual as instructed by Franchisor and
conform its operations with the updated  provisions.  Franchisee  acknowledges
that the master copy of the Operations  Manual maintained by Franchisor at its
principal office controls in the event of a dispute over its contents.

                          7.  DEVELOPMENT ASSISTANCE

      7.1   Franchisor's  Development  Assistance.  To  assist  Franchisee  in
establishing the Restaurant, Franchisor shall provide the following:

(1)   Assistance  related to  accepting  a site for the  Restaurant,  although
Franchisee  acknowledges  that  Franchisor  has no  obligation  to  select  or
acquire a site on behalf of Franchisee.  Franchisor's  assistance will consist
of, at a minimum,  providing  general  criteria  for a  satisfactory  site and
determining  whether a proposed site fulfills the requisite  criteria prior to
formal   acceptance  of  a  site  selected  by  Franchisee.   Site  selection,
acquisition,  and  development  shall be the sole  obligation  of  Franchisee,
except as set forth in this Agreement or any other written agreement  executed
by Franchisor.  Franchisee acknowledges that Franchisor is under no obligation
to provide  additional  site  selection  services other than as set forth in a
written,  executed agreement and that Franchisor's acceptance of the site does
not imply or guarantee the success or  profitability of the site in any manner
whatsoever.

(2)    Standards  and  specifications  for the  build  out,  interior  design,
layout, floor plan, signs, designs, color, and decor of the Restaurant.

(3)    Advice  regarding the standards and  specifications  for the equipment,
supplies,  and materials  used in, and the menu items offered for sale by, the
Restaurant and advice  regarding  selecting  suppliers for and purchasing such
items.

(4)    Guidance in implementing advertising and marketing programs,  operating
and sales procedures, and bookkeeping and accounting programs.

(5)   The initial training in accordance with Section 7.1.

(6)   Opening  assistance  consisting  of one (1) or more  representatives  of
Franchisor on site at the Franchised  Location for not less than five (5) days
to assist  Franchisee  in opening  the  Restaurant;  provided,  however,  that
Franchisee  shall  hire  and be  exclusively  responsible  for  the  training,
compensation, and control of its employees.

(7)   One (1) copy of the Operations  Manual, as described in Section 8, which
shall be loaned to Franchisee during the term of this Agreement.

      7.2   Responsibilities  of Area Director.  Franchisor reserves the right
to retain the  services  of an area  director or other  representative  ("Area
Director") in the geographic  area in which  Franchisee's  Restaurant  will be
located.  In such event,  the Area  Director,  on behalf of  Franchisor,  will
perform certain sales, site assistance,  and supervisory  services directed by
Franchisor.   Franchisee   agrees  in  advance  to  any  such  delegation  and
assignment  by Franchisor  of any portion or all of  Franchisor's  obligations
and rights under this Agreement.  Franchisee also  acknowledges that it is not
a third party  beneficiary of any Area Director  Marketing  Agreement or other
agreement between Franchisor and any Area Director.

                           8.  OPERATING ASSISTANCE

      8.1   Franchisor's   Assistance.    Franchisor   agrees   that,   during
Franchisee’s  operation  of  the  Restaurant,  Franchisor  or  its  designated
representatives shall make available to Franchisee the following assistance:

(8)   Upon  the  reasonable  request  of  Franchisee,  telephone  consultation
regarding the continued  operation and  management of a Restaurant  and advice
regarding  Restaurant  services,  product  quality  control,  menu items,  and
customer relations issues.

(9)   Access to advertising and promotional  materials developed by Franchisor
through the Marketing and Promotion Fund (as defined below).

(10)  On-going  updates of information  and programs  regarding menu items and
their  preparation,  the Restaurant  business,  and related Licensed  Methods,
including  information about special or new services or products developed and
made available to franchisees of Franchisor.

(11)  The initial  training  program to replacement  or additional  Designated
Managers  during  the term of this  Agreement.  Although  Franchisor  does not
currently charge a tuition or fee,  Franchisor  reserves the right to charge a
tuition  or fee,  payable  in  advance,  commensurate  with  the  then-current
published  prices  of  Franchisor  for  such  training.  Franchisee  shall  be
responsible  for all travel  and living  expenses  incurred  by its  personnel
during the training program.

                    9.  FRANCHISEE'S OPERATIONAL COVENANTS

      9.1   Business  Operations.  Franchisee  acknowledges  that it is solely
responsible  for the  successful  operation  of its  Restaurant  and  that its
successful  operation  depends on Franchisee's  compliance with this Agreement
and the Operations  Manual. In addition to all other obligations  contained in
this Agreement and the Operations Manual, Franchisee agrees that:

(12)  Franchisee  shall maintain a clean,  safe,  and high quality  Restaurant
operation  and  promote  and  operate  the  business  in  accordance  with the
Operations  Manual so as not to detract  from or  adversely  reflect  upon the
name  and  reputation  of  Franchisor  and the  goodwill  associated  with the
QUIZNO'S name and Marks.

(13)  Franchisee  will conduct itself and operate its Restaurant in compliance
with all  applicable  laws,  regulations,  and other  ordinances and in such a
manner  so as to  promote  a good  public  image  in the  business  community.
Franchisee  will be solely and fully  responsible  for  obtaining  any and all
licenses  to operate  the  Restaurant.  Franchisee  shall  keep  copies of all
health department,  fire department,  building  department,  and other similar
reports of  inspections  on file and available for  inspection by  Franchisor.
Franchisee  shall  immediately  forward  to  Franchisor  any such  reports  or
inspections in which  Franchisee  has been found not to be in compliance  with
the underlying regulation.

(14)  Franchisee  acknowledges  that proper  management  of the  Restaurant is
important  and shall  ensure  that  Franchisee  (or its  Managing  Owner) or a
Designated  Manager who has  completed  the initial  training  program will be
responsible for managing the Restaurant  after  commencement of operations and
be present at the Franchised Location during its operation.

(15)   Franchisee  acknowledges  that the  franchise  requires and  authorizes
Franchisee to offer only authorized  products and services as described in the
Operations Manual, which may include, without limitation,  submarine and other
sandwiches,  salads, other authorized food and beverage products,  and related
restaurant and carry out or delivery  services.  Franchisee  shall maintain at
all times a  sufficient  supply of all menu items and  related  food and paper
products  to  ensure,  insofar as  possible,  that such items are at all times
available to its customers.  Franchisee  shall offer all types of services and
products from time to time  prescribed  by Franchisor  and shall not offer any
other types of services  or  products,  or operate or engage in any other type
of  business  or   profession,   from  or  through  the   Restaurant,   unless
Franchisor's written consent is first obtained.

(16)  Franchisee  shall promptly pay when due all taxes and other  obligations
owed to third parties, including,  without limitation, all federal, state, and
local taxes and any and all accounts  payable or other  indebtedness  incurred
by Franchisee in operating the Restaurant.

(17)  Franchisee  shall comply with all agreements  with third parties related
to the Restaurant,  including,  in particular,  all provisions of any premises
lease or Sublease.

(18)  Franchisee agrees to renovate,  refurbish,  remodel,  or replace, at its
own expense,  the real and personal  property and equipment  used in operating
the Restaurant when reasonably  required by Franchisor in order to comply with
the image,  standards of operation,  and performance capability established by
Franchisor from time to time. If Franchisor  changes its image or standards of
operation,  it shall give Franchisee a reasonable  period of time within which
to comply with such changes.

(19)  Franchisee  shall at all times during the term of this Agreement own and
control the Restaurant. Upon request of Franchisor,  Franchisee shall promptly
provide  satisfactory  proof  of  such  ownership  to  Franchisor.  Franchisee
represents  that the  Statement  of  Ownership  attached as Exhibit 5 is true,
complete,  accurate,  and not misleading.  Franchisee  shall promptly  provide
Franchisor with a written  notification  if the  information  contained in the
Statement of Ownership  changes at any time during the term of this  Agreement
and  shall  comply  with  the  applicable  transfer  provisions  contained  in
Section 16.  Franchisee  acknowledges  that,  if  Franchisee  is other than an
individual(s),  Franchisor may require that the  individual  owners or members
of Franchisee  guarantee the  performance  of Franchisee and sign the Guaranty
and  Assumption  of  Franchisee's  Obligations  attached to this  Agreement as
Exhibit 6.

(20)  Franchisee  shall at all times  during the term of this  Agreement  keep
its Restaurant  open during the business hours  designated by Franchisor  from
time to time in the Operations  Manual. Any deviations from the required hours
first must be approved in writing by Franchisor.

(21)  Franchisee  shall procure,  maintain,  and provide evidence of insurance
for the Restaurant and its operations of the types,  in the amounts,  and with
such terms and  conditions as Franchisor  from time to time  prescribes in the
Operations  Manual or  otherwise.  All of the  required  policies of insurance
shall name  Franchisor  and TQC as additional  insureds and provide for thirty
(30) days'  advance  written  notice to Franchisor  of their  cancellation  or
modification.  If Franchisee  participates in the Lease Assistance Program, it
shall use an insurance carrier approved by Franchisor.

(22)  Franchisee  will  provide  proof  of  insurance  to  Franchisor   before
beginning  operations  at its  Restaurant.  This  proof  will  show  that  the
insurer has been  authorized  to inform  Franchisor  in the event any policies
lapse or are  canceled  or  modified.  Franchisor  has the right to change the
insurance  Franchisee is required to maintain by giving Franchisee  reasonable
prior notice.  Noncompliance  with these insurance  provisions shall be deemed
a material  breach of this  Agreement;  in the event of any lapse in insurance
coverage,  then, in addition to all other remedies,  Franchisor shall have the
right to demand that  Franchisee  cease  operations  of the  Restaurant  until
coverage is reinstated or, alternatively,  to pay any delinquencies in premium
payments and charge the same to Franchisee.

                               10.  ADVERTISING

      10.1  Approval  and  Use  of   Advertising.   Franchisee   shall  obtain
Franchisor's  prior  written  approval  of all  written  advertising  or other
marketing  or  promotional  programs  not  previously  approved by  Franchisor
regarding  the  Restaurant,  including,  without  limitation,  "Yellow  Pages"
advertising,  newspaper ads, flyers,  brochures,  coupons, direct mail pieces,
specialty and novelty items, radio and television advertising,  Internet "web"
pages,  and other home pages or domain names on any common carrier  electronic
delivery  system.  Any proposed  uses not  previously  approved by  Franchisor
shall be submitted to Franchisor at least ten (10) days prior to  publication,
broadcast,  or use. Franchisee acknowledges that advertising and promoting the
Restaurant in accordance with Franchisor's  standards and  specifications  are
essential  aspects of the Licensed  Methods,  and Franchisee  agrees to comply
with all advertising  standards and specifications.  Franchisee also agrees to
participate  in any promotion  campaigns and  advertising  and other  programs
that Franchisor periodically establishes.

      10.2  Grand  Opening.  Franchisee  agrees  to  conduct  a grand  opening
advertising and promotional  program for the Restaurant at the time and in the
manner  specified by Franchisor and agrees to spend a minimum of Five Thousand
Dollars ($5,000) for the grand opening program.  Franchisee  agrees to provide
Franchisor  with a summary of grand opening  program  expenditures  within one
hundred  twenty  (120) days after the  Restaurant  opens.  Franchisee's  grand
opening program will utilize the marketing and public  relations  programs and
media and  advertising  materials  that  Franchisor  has either  developed  or
approved.

      10.3  Marketing  and  Promotion  Fee.   Franchisee   agrees  to  pay  to
Franchisor,   in  addition  to  Royalties,   a  Marketing  and  Promotion  fee
("Marketing  and  Promotion  Fee") of one percent  (1%) of the total amount of
Franchisee's  Gross  Sales.  The  Marketing  and  Promotion  Fee  shall  be in
addition  to and  not in lieu  of  Franchisee's  Local  Advertising  Fee.  The
following  terms and conditions  will apply to the Marketing and Promotion Fee
payment:

(23)  The Marketing and  Promotion Fee shall be payable  weekly,  concurrently
with the  payment  of the  Royalties,  based on Gross  Sales  (as  defined  in
Section 5.2) for the immediately preceding reporting period.  Franchisee shall
execute an Authorization  Agreement for preauthorized payment of Marketing and
Promotion Fees by electronic  transfer of funds from Franchisee's bank account
to the bank account designated by Franchisor.  Any Marketing and Promotion Fee
collected by  Franchisor  will be deposited by  Franchisor  in one (1) or more
separate accounts (referred to collectively as the "Fund"),  all designated as
"QUIZNO'S  Marketing  and Promotion  Fund." The  Marketing and Promotion  Fees
will be  subject  to the same late  charges  as the  Royalties.  Upon  written
request by Franchisee,  Franchisor will make available to Franchisee, no later
than one hundred  twenty (120) days after the end of each  calendar  year,  an
annual  unaudited  financial  statement  for  the  Fund  which  indicates  how
deposits  to the Fund have been  spent.  Franchisor  has the right to  deposit
into  the Fund any  advertising,  marketing,  or  similar  allowances  paid by
suppliers who deal with  Restaurants  and with whom Franchisor has agreed that
it will (or if Franchisor  otherwise  chooses to) so deposit these allowances.
QUIZNO'S  Restaurants that Franchisor or its affiliates own will contribute to
the Fund on the same basis as franchisees.

(24)  The Fund will be  administered  and  controlled by Franchisor and may be
used for  production  and  placement  of media  advertising,  direct  response
literature,  direct  mailings,  brochures,  collateral  advertising  material,
surveys of advertising  effectiveness,  other  advertising or public relations
expenditures   relating  to  advertising  QUIZNO'S  Restaurants  services  and
products,  providing  professional  services,   materials,  and  personnel  to
support the marketing  function,  and creating,  producing,  and  implementing
websites for  Franchisor  and/or its  franchisees.  Franchisor  may  reimburse
itself for administrative costs,  independent audits,  reasonable  accounting,
bookkeeping,  reporting,  and legal  expenses,  taxes,  and  other  reasonable
direct  and  indirect  expenses  incurred  by  Franchisor  or  its  authorized
representatives  in connection  with the programs funded by the Fund. The Fund
will not be Franchisor's  asset.  Franchisor will not be liable for any act or
omission  that is  consistent  with  this  Agreement  and done in good  faith.
Franchisor  may  spend in any  fiscal  year  more or less  than the  aggregate
contribution  of all  Restaurants  to the Fund in that year,  and the Fund may
borrow from  Franchisor or others to cover  deficits or invest any surplus for
future use.  All  interest  earned on monies  contributed  to the Fund will be
used to pay  advertising  costs before other assets of the Fund are  expended.
Franchisor  may  cause  the Fund to be  incorporated  or  operated  through  a
separate  entity  at such  time as  Franchisor  deems  appropriate,  and  such
successor  entity,  if established,  will have all rights and duties specified
in this Section.  Franchisor  undertakes no obligation to ensure that the Fund
benefits each  Restaurant in proportion to its respective  contributions.  The
Fund's primary  purpose is to support sales by the entire  QUIZNO'S System and
to build brand  identity.  Franchisee  agrees to  participate in any promotion
campaigns  and  advertising  and  other  programs  that the Fund  periodically
establishes.

(25)  Franchisor has the right,  but no obligation,  to use collection  agents
and institute legal  proceedings to collect Fund  contributions  at the Fund's
expense.  Franchisor  also may forgive,  waive,  settle,  and  compromise  all
claims by or  against  the Fund.  Franchisor  may at any time  defer or reduce
contributions  of a  franchisee  and,  upon thirty  (30) days'  prior  written
notice to Franchisee,  reduce or suspend Fund contributions and operations for
one (1) or more  periods of any  length and  terminate  (and,  if  terminated,
reinstate)  the Fund. If Franchisor  terminates  the Fund, it will  distribute
all unspent monies to the  contributors in proportion to their respective Fund
contributions during the preceding twelve (12) month period.

      10.4  Local  Advertising.  Franchisee  agrees  to spend  not  less  than
three  percent  (3%) of the  total  amount of its Gross  Sales  each  calendar
quarter  for local  advertising  ("Local  Advertising  Fee").  Franchisor  may
request that  Franchisee  prepare and submit a quarterly  report to Franchisor
which  accounts  for the use of the Local  Advertising  Fee no later  than ten
(10) days  following the end of each calendar  quarter during the term of this
Agreement.  Franchisor  may  collect  and  designate  all or a portion  of the
Local Advertising Fee for the Marketing and Promotion Fund.

      10.5  Regional  Advertising  Programs.  Although not obligated to do so,
Franchisor may create a regional advertising program ("Regional  Advertising")
for the  benefit  of the  Restaurants  located  within  a  particular  region.
Franchisor  has the right to  (i) allocate  any portion of the  Marketing  and
Promotion  Fund to the Regional  Advertising  program;  and  (ii) collect  and
designate  all or a  portion  of the  Local  Advertising  Fee  for a  Regional
Advertising  program.  If  a  Regional  Advertising  program  is  established,
Franchisor  may  increase  the  Local  Advertising  Fee by one  percent  (1%);
provided  that in no event shall  Franchisee  be required to spend more than a
total of five  percent  (5%) of its Gross  Sales,  in the  aggregate,  for the
Local Advertising Fee, Regional  Advertising,  and Marketing and Promotion Fee
contributions,  including Yellow Pages  advertising.  Franchisor has the right
to determine the  composition of all geographic  territories  and market areas
for the implementation of Regional  Advertising and promotion campaigns and to
require that Franchisee  participate in such Regional  Advertising programs as
and when  established  by  Franchisor.  The fees  designated  to the  Regional
Advertising  programs may be used to pay regional,  multi-regional or national
marketing  expenses.  If a  Regional  Advertising  program is  implemented  on
behalf of a particular region,  Franchisor  reserves the right to establish an
advertising  cooperative for a particular  region to enable the cooperative to
self-administer  the Regional  Advertising  program,  and Franchisee agrees to
participate in such cooperative  according to the  cooperative's  then current
rules  and  procedures  and  to  abide  by  the  cooperative's   then  current
decisions.  Franchisor  may at any time,  upon thirty (30) days' prior written
notice to Franchisee,  suspend a Regional  Advertising  program or cooperative
operations  for one (1) or more periods of any length and  terminate  (and, if
terminated, reinstate) the Regional Advertising program or cooperative.

                             11.  QUALITY CONTROL

      11.1  Standards and  Specifications.  Franchisor  will make available to
Franchisee  standards and  specifications for services and products offered at
or through the Restaurant and the uniforms,  recipes, materials, forms, menus,
items,  and  supplies  used  in  connection  with  the  franchised   business.
Franchisor  reserves  the right to change  standards  and  specifications  for
services and products  offered at or through the  Restaurant  or for uniforms,
recipes,  materials,  forms,  items, and supplies upon thirty (30) days' prior
written notice to Franchisee.

      11.2  Inspections.   Franchisor   shall  have  the  right  to  interview
customers  or examine  the  Franchised  Location  and to examine  and copy its
books, records, and documents,  including,  without limitation, the inventory,
products,  equipment,  materials,  or supplies,  to ensure compliance with all
standards  and  specifications  set by  Franchisor.  Franchisor  shall conduct
such  inspections  during  regular  business  hours  without  prior  notice to
Franchisee.

      11.3  Restrictions  on Services and  Products.  Franchisee is prohibited
from  offering  or selling  any  services  or  products  from or  through  the
Restaurant  that have not been previously  authorized by Franchisor.  However,
if Franchisee proposes to offer,  conduct, or utilize any services,  products,
materials,  forms,  items,  or supplies in connection with or for sale through
the  Restaurant  that are not approved by Franchisor,  Franchisee  shall first
notify  Franchisor in writing  requesting  approval.  Franchisor  may withhold
such approval;  however, in order to make such  determination,  Franchisor may
require  submission  of  specifications,   information,  or  samples  of  such
services,  products,  materials,  forms,  items, or supplies.  Franchisor will
advise  Franchisee  within a reasonable time whether such products,  supplies,
or services  meet its  specifications.  A charge not to exceed the actual cost
of the review may be made by Franchisor and shall be paid by Franchisee.

      11.4  Approved  Suppliers.  Franchisee  shall  purchase  all  equipment,
products,  services, supplies, and materials required for the operation of the
Restaurant  from  manufacturers,  suppliers,  or  distributors  designated  by
Franchisor  or, if there is no designated  supplier for a particular  product,
service,  supply,  or  material,  from such  other  suppliers  who meet all of
Franchisor's   specifications  and  standards  as  to  quality,   composition,
finish,  appearance, and service and adequately demonstrate their capacity and
facilities to supply  Franchisee's needs in the quantities,  at the times, and
with  the  reliability   requisite  to  an  efficient  operation.   Franchisor
reserves the right to designate,  from time to time, a single supplier for any
services,  products,   equipment,   supplies,  or  materials  and  to  require
Franchisee  to use such a designated  supplier  exclusively,  which  exclusive
designated  supplier may be Franchisor or its  affiliates.  Franchisor and its
affiliates may receive  payments from suppliers on account of such  suppliers'
dealings  with  Franchisee  and other  franchisees  and may use all amounts so
received  without   restriction  and  for  any  purpose   Franchisor  and  its
affiliates  deem  appropriate  (unless  Franchisor  and its  affiliates  agree
otherwise with the supplier).

      11.5  Request for Change of Supplier.  In the event  Franchisee  desires
to purchase products,  services,  supplies,  or materials from  manufacturers,
suppliers,   or  distributors   other  than  those   previously   approved  by
Franchisor,   Franchisee  shall,   prior  to  purchasing  any  such  products,
services,  supplies, or materials, give Franchisor a written request to change
supplier.  Franchisor  shall notify  Franchisee  in writing of its approval or
rejection  of  the   proposed   supplier   within  a  reasonable   time  after
Franchisor's  completion  of  its  investigation  of  the  proposed  supplier.
Franchisor may from time to time inspect any  manufacturer's,  supplier's,  or
distributor's   facilities   and   products  to  assure   proper   production,
processing,  storing, and transportation of products,  services,  supplies, or
materials to be purchased from the manufacturer,  supplier,  or distributor by
Franchisee.  Permission  for  such  inspection  shall  be a  condition  of the
continued   approval  of  such   manufacturer,   supplier,   or   distributor.
Franchisor may, for any reason  whatsoever,  elect to withhold approval of the
manufacturer,  supplier,  or  distributor;  however,  in  order  to make  such
determination,  Franchisor  may  require  that  samples  from a  proposed  new
supplier be delivered to  Franchisor  for testing prior to approval and use. A
charge  not to exceed the  actual  cost of the test may be made by  Franchisor
and shall be paid by Franchisee.

               12.  MARKS, TRADE NAMES AND PROPRIETARY INTERESTS

      12.1  Marks.  Franchisee  acknowledges  that Franchisor and TQC have the
sole right to license and control  Franchisee's use of the Marks and that such
Marks  shall  remain  under the sole and  exclusive  ownership  and control of
Franchisor  and TQC.  Franchisee  acknowledges  that it does not  acquire  any
right,  title,  or interest in the Marks except for the right to use the Marks
in operating its Restaurant  under this  Agreement.  Franchisee  shall display
the Marks prominently at the Restaurant,  on packaging and serving  materials,
and in connection with forms,  advertising,  and marketing,  all in the manner
Franchisor  prescribes.  Franchisee  further  agrees  that no Marks other than
"QUIZNO'S,"  "QUIZNO'S  CLASSIC SUBS," or such other  trademarks  specified by
Franchisor  shall  be used in the  marketing,  promotion,  identification,  or
operation of the Restaurant,  except with Franchisor's  prior written consent.
Franchisee  may not use any of the Marks,  except as allowed by  Franchisor in
writing,  as part of any domain name or electronic address it maintains on the
Internet,  the World  Wide Web,  or any other  similar  proprietary  or common
carrier electronic delivery system.

      12.2  Licensed  Methods.  Franchisee  hereby  acknowledges that TQC owns
and controls the distinctive plan for establishing,  operating,  and promoting
Restaurants and all related  licensed  methods of doing  business,  previously
defined as the  Licensed  Methods,  which  include,  but are not  limited  to,
recipes,  menu items,  and cooking  methods;  technical  restaurant  equipment
standards;   order  and  take-out  fulfillment  methods;  customer  relations;
marketing  techniques;  written  promotional  materials and Operations  Manual
contents;  advertising;  and accounting systems; all of which constitute trade
secrets  of  TQC  and  have  been  licensed  to  Franchisor,   and  Franchisee
acknowledges  that TQC and  Franchisor  have  valuable  rights  in and to such
trade secrets.  Franchisee  further  acknowledges that it has not acquired any
right,  title,  or interest in the Licensed  Methods,  except for the right to
use the Licensed  Methods in operating  the  Restaurant,  and that any and all
innovations,  additions, or improvements made to the Licensed Methods, even if
by Franchisee, shall belong to TQC.

      12.3  Trademark  Infringement.  Franchisee  agrees to notify  Franchisor
in  writing  of any  possible  infringement  of a Mark or use by  others  of a
trademark   confusingly   similar  to  the  Marks  coming  to  its  attention.
Franchisee  acknowledges  that Franchisor and TQC shall have the sole right to
determine  whether  any  action  will be taken  in  response  to any  possible
infringement  or illegal  use and to  control  any  action  taken.  Franchisee
agrees to fully  cooperate with  Franchisor and TQC in any litigation or other
action.

      12.4  Franchisee's   Business   Name.   Franchisee   acknowledges   that
Franchisor  and TQC have a prior  and  superior  claim to the  QUIZNO'S  trade
name.  Franchisee  shall not use the word  "QUIZNO'S" in the legal name of its
corporation,  partnership,  or any  other  business  entity.  Franchisee  also
agrees not to  register  or  attempt  to  register a trade name using the word
"QUIZNO'S" or any portion  thereof in  Franchisee's  name or that of any other
person or business entity.

      12.5  Change of  Marks.  In the event  Franchisor  decides  to modify or
discontinue  use  of  any  proprietary  Marks,  or to  develop  additional  or
substitute marks,  Franchisee shall, within a reasonable time after receipt of
written notice,  take such action, at Franchisee's sole expense,  necessary to
comply with such  modification,  discontinuation,  addition,  or substitution.
Franchisor  need not reimburse  Franchisee for its direct expenses of changing
the  Restaurant's  signs,  for any  loss of  revenue  due to any  modified  or
discontinued  Mark,  or for its expenses of promoting a modified or substitute
trademark or service mark.

                13.  REPORTS, RECORDS AND FINANCIAL STATEMENTS

      13.1  Franchisee   Reports.   Franchisee   shall  use  the   bookkeeping
services  described in and shall  execute  Exhibit 7 for the first twelve (12)
months  Franchisee's  first  Restaurant is operating.  After that,  Franchisee
may discontinue the bookkeeping service ninety (90) days following  completion
of the  following:  Franchisee  retains a  full-time  professional  accountant
(approved  in  writing by  Franchisor)  to provide  bookkeeping  services  (at
Franchisee's  expense),  and that  accountant  agrees  in  writing  (on a form
acceptable to Franchisor) to provide timely financial  statements  required by
this  Section 15.  If Franchisee  fails to provide such  financial  statements
more than two (2) times in any twelve (12) month period,  then, in addition to
any other  remedies,  Franchisor  may require  Franchisee to use  Franchisor's
bookkeeping  services at the then-current  fee.  Franchisee also shall provide
to  Franchisor  financial  and  accounting  reports  in the  manner  and  form
Franchisor requires, including:

(26)  Weekly  summary  reports,  submitted  by no later than the Due Date each
week  (defined in  Section 5.3)  and  containing  information  relative to the
previous weekly reporting period operations;

(27)  Any  other  data,   information,   and  supporting   records  reasonably
requested by  Franchisor  from time to time  (including,  without  limitation,
daily and weekly reports of product sales by category);

(28)  Within  fifteen  (15)  days  after  the end of  each  month,  an  income
statement of  Franchisee's  Restaurant  for such month and for the fiscal year
to date, prepared in accordance with generally accepted accounting  principles
("GAAP") consistently applied, in Franchisor's recommended format; and

(29)  Within  ninety  (90) days  after the end of  Franchisee's  fiscal  year,
which shall be the calendar  year,  an income  statement  and balance sheet of
Franchisee's   Restaurant  for  such  fiscal  year  (reflecting  all  year-end
adjustments)  and a  statement  of  changes  in cash  flow of the  Restaurant,
prepared in  accordance  with GAAP  consistently  applied and in  Franchisor's
recommended  format.  Franchisor reserves the right to require that Franchisee
have reviewed financial statements prepared on an annual basis.

      13.2  Financial  Records Use and Access.  Franchisor  reserves the right
to disclose data derived from all financial and  accounting  reports  received
from  Franchisee.  Franchisor  reserves the right to require  that  Franchisee
install and maintain a telephone  modem and dedicated  line at the  Restaurant
which  Franchisor  may  access to  obtain  sales  information  and data of the
System  (defined in Section  6.7),  and  Franchisee  agrees to cooperate  with
Franchisor's  procedures  regarding the System.  With respect to the operation
and  financial  condition  of the  Restaurant,  Franchisee  agrees to  furnish
Franchisor  the  required   financial  and  accounting  reports  in  the  form
prescribed by  Franchisor,  which may include,  without  limitation,  computer
diskette, electronic mail, and facsimile transmission.

      13.3  Books  and  Records.  Franchisee  shall  maintain  all  books  and
records for its Restaurant in accordance  with GAAP  consistently  applied and
preserve such records,  including cash register tapes,  shift reports,  weekly
operating  summaries,  and sales  tax  returns,  for at least  three (3) years
after the fiscal year to which they relate.

      13.4  Audit of Books and Records.  Franchisee  shall  permit  Franchisor
or its  representatives  to  inspect  and audit the books and  records  of the
Restaurant  at any  reasonable  time at  Franchisor's  expense.  If any  audit
discloses a deficiency in amounts owed to Franchisor,  then such amounts shall
become  immediately  payable to Franchisor by  Franchisee,  with interest from
the date such  payments  were due at the lesser of two percent  (2%) per month
or the maximum commercial  contract interest rate allowed by law. In addition,
if such  audit  discloses  that the Gross  Sales of the  Restaurant  have been
understated by two (2%) or more during the audit period,  Franchisee shall pay
all reasonable costs and expenses  Franchisor incurred in connection with such
audit.

                                 14.  TRANSFER

      14.1  Transfer  by  Franchisee.  Franchisee  agrees  that the rights and
duties   created  by  this  Agreement  are  personal  to  Franchisee  (or  its
shareholders,  partners,  members,  or owners, if Franchisee is a corporation,
partnership,  or limited liability company, or other business entity) and that
Franchisor  has entered  into this  Agreement  in reliance  upon  Franchisor's
perceptions  of the  individual  or  collective  character,  skill,  aptitude,
attitude,  business  ability,  and financial  capacity of  Franchisee  (or its
shareholders,    partners,   members,   or   owners).   Accordingly,   without
Franchisor's prior written consent,  which will not be unreasonably  withheld,
neither this  Agreement  (or any interest in this  Agreement)  nor any part or
all of the  ownership  of  Franchisee  may be  transferred.  Any  unauthorized
transfer is a breach of this  Agreement,  void,  and of no effect.  As used in
this Agreement,  the term  "transfer"  includes  Franchisee's  (or an owner's)
voluntary,  involuntary,  direct, or indirect assignment, sale, gift, or other
disposition  of  any  interest  in:  (1) this  Agreement;  (2) the  Franchisee
entity;  (3) the  Restaurant  governed  by this  Agreement;  or  (4) all  or a
substantial portion of the assets of the Restaurant.

      14.2  Pre-Conditions   to  Franchisee's   Transfer.   Franchisee  agrees
that  there  may  be  no  transfers  before  the  Restaurant  has  opened  for
business.  Franchisor  shall not be obligated  to approve a proposed  transfer
unless   Franchisee  (and  its  owners)  are  in  full  compliance  with  this
Agreement.  Franchisor  shall not  unreasonably  withhold  its  approval  of a
proposed  transfer  that  meets  all  the  applicable   requirements  of  this
Section.  The proposed  transferee  and its owners must be individuals of good
moral character and otherwise meet Franchisor's then applicable  standards for
franchisees.

      If the proposed  transfer is of this Agreement and the Restaurant,  or a
controlling  interest  in  Franchisee,  or is one  of a  series  of  transfers
(regardless  of the time period over which these  transfers  take place) which
in the aggregate  transfer this  Agreement and the Restaurant or a controlling
interest in Franchisee,  all of the following conditions must be met before or
concurrently  with the  effective  date of the  transfer:  (a) All amounts due
and  owing   pursuant  to  this   Agreement  or  otherwise  by  Franchisee  to
Franchisor,  its  affiliates,  or third  parties  whose  debts or  obligations
Franchisor has  guaranteed on behalf of Franchisee,  if any, are paid in full;
Franchisee has submitted all required  reports and statements;  and Franchisee
has not violated any provision of this Agreement,  the Restaurant's  lease, or
any other  agreement  with  Franchisor  during  both the sixty (60) day period
before  Franchisee  requested  Franchisor's  consent to the  transfer  and the
period  between  Franchisee's  request and the effective date of the transfer;
(b) the proposed  transferee  agrees to operate the  Restaurant  as a QUIZNO'S
Restaurant,   signs  the  then-current  form  of  franchise   agreement,   the
provisions of which may differ  materially from any and all of those contained
in  this  Agreement,   and  satisfactorily   completes  the  initial  training
program;  (c) Franchisee provides written notice to Franchisor at least thirty
(30) days prior to the  proposed  effective  date of the transfer and includes
information  reasonably  detailed to enable  Franchisor  to evaluate the terms
and  conditions  of the  proposed  transfer,  which at a  minimum  includes  a
written  offer  from the  proposed  transferee;  (d) the  proposed  transferee
provides  information  to Franchisor  sufficient  for Franchisor to assess the
proposed   transferee's   business   experience,   aptitude,   and   financial
qualification,   and  Franchisor   approves  the  proposed   transferee  as  a
franchisee;  (e) neither  the transferee nor its owners or affiliates  operate
or  have  an  ownership  interest  in  a  Competitive   Business  (defined  in
Section 20.1);  (f) Franchisee's  landlord  allows  Franchisee to transfer the
Restaurant's lease to the transferee;  (g) if Franchisee or its owners finance
any part of the purchase  price,  Franchisee  and/or its owners agree that all
of  the  transferee's  obligations  under  promissory  notes,  agreements,  or
security   interests  reserved  in  the  Restaurant  are  subordinate  to  the
transferee's  obligation to pay fees and other  amounts due to Franchisor  and
otherwise to comply with this  Agreement;  (h)  Franchisee  executes a general
release,  in a form satisfactory to Franchisor,  of any and all claims against
Franchisor,  its  affiliates,  and their  respective  shareholders,  officers,
directors,    employees,   and   agents;    (i) Franchisee   abides   by   all
post-termination  covenants,  including,  without limitation, the covenant not
to compete set forth in Section 20.3;  and (j) if  Franchisee is an individual
transferring  this Agreement and the Restaurant to an entity  wholly-owned  by
Franchisee,  Franchisee agrees both to remain  personally  responsible for the
entity's  performance of its obligations  under this Agreement and to continue
to comply personally with all obligations under this Agreement.

      If  Franchisor  approves  the  proposed  transfer,   Franchisee  or  the
proposed  transferee  will pay Franchisor a transfer fee in an amount equal to
twenty-five  percent (25%) of the then-current  Initial  Franchise Fee for the
type  of  Restaurant  being  transferred,  which  fee  is  required  to  cover
Franchisor's reasonable expenses related to the transfer,  including training;
provided,  however,  that no transfer  fee will be charged  (and  Franchisor's
right of first  refusal  will not apply) for a transfer  by  Franchisee  to an
entity  wholly-owned by Franchisee,  between owners of a Franchisee entity, or
to a spouse of a  Franchisee  (or owner of the  Franchisee)  upon the death or
disability  of  Franchisee  (or owner) so long as the transfer does not result
in a change of control of the Franchisee.

      A person will be deemed to have a controlling  interest in Franchisee if
that  person has the right to vote  twenty-five  percent  (25%) or more of the
voting  securities  or other forms of  ownership  interest  of a  corporation,
partnership,  or other form of entity,  or is entitled to receive  twenty-five
percent  (25%) or more of the net profits of any such entity,  or is otherwise
able to  direct  or  cause  the  direction  of  that  entity's  management  or
policies.

      14.3  Franchisor's  Approval  of  Transfer.  Franchisor  has thirty (30)
days  from the  date of the  written  notice  to  approve  or  disapprove,  in
writing,  Franchisee's  proposed  transfer.  Franchisee  acknowledges that the
proposed  transferee  shall  be  evaluated  by  Franchisor  based  on the same
criteria as are currently  being used to assess new  franchisees  and that the
proposed transferee shall be provided with such disclosures  required by state
or  federal  law.   Franchisor  may  review  all  information   regarding  the
Restaurant that Franchisee  gives the transferee,  and Franchisor may give the
transferee  copies of any reports  that  Franchisee  has given  Franchisor  or
Franchisor has made regarding the Restaurant.

      14.4  Right of First Refusal.  Franchisee  grants to Franchisor a thirty
(30) day right of first refusal to purchase such rights,  interest,  or assets
on the same terms and  conditions as are  contained in the written  notice set
forth in Section 16.2(c);  provided,  however,  the following additional terms
and conditions  shall apply:  (a) the right of first refusal will be effective
for  each  proposed  transfer,  and  any  material  change  in  the  terms  or
conditions  of the  proposed  transfer  shall be deemed a  separate  offer for
which Franchisor shall have a new thirty (30) day right of first refusal;  (b)
the thirty (30) day right of first refusal period will run  concurrently  with
the period in which the  Franchisor  has to approve or disapprove the proposed
transferee;  (c) if the  consideration  or  manner  of  payment  offered  by a
proposed  transferee is such that Franchisor  cannot reasonably be expected to
furnish the same,  then  Franchisor  may purchase the interest  proposed to be
sold for the reasonable cash equivalent.  If the parties cannot agree within a
reasonable time on the cash consideration,  an independent  appraiser shall be
designated  by  Franchisor,  whose  determination  will be  binding  upon  the
parties;  all  expenses  of  the  appraiser  shall  be  paid  for  equally  by
Franchisor and Franchisee;  and,  despite  subparagraph  (b), Franchisor  will
have  fifteen  (15) days  after  determination  of the cash  consideration  to
exercise  its right of first  refusal;  and (d) if  Franchisor  chooses not to
exercise its right of first refusal,  Franchisee shall be free to complete the
transfer subject to compliance with Sections 16.2 and 16.3.

      14.5  Transfer by Franchisor.  Franchisee  acknowledges  that Franchisor
maintains  a staff to manage and operate  the  QUIZNO'S  System and that staff
members can change from time to time.  Franchisee  represents  that it has not
signed this Agreement in reliance on any shareholder,  director,  officer,  or
employee  remaining with  Franchisor in that  capacity.  Franchisor may change
its  ownership or form and/or assign this  Agreement  and any other  agreement
without restriction.

      14.6  Franchisee's  Death or  Disability.  Upon the  death or  permanent
disability of Franchisee (or an individual  controlling a Franchisee  entity),
the  personal  representative  of  such  person  shall  transfer  Franchisee's
interest in this  Agreement or such  interest in the  Franchisee  entity to an
approved  third party.  Such  disposition  of this  Agreement or such interest
(including,  without limitation,  transfer by bequest or inheritance) shall be
completed  within a reasonable  time,  not to exceed one hundred  twenty (120)
days  from the  date of death or  permanent  disability  (unless  extended  by
probate  proceedings),  and  shall be  subject  to all  terms  and  conditions
applicable to transfers contained in this Section 16; provided,  however, that
for  purposes  of this  Section,  there  shall be no  transfer  fee charged by
Franchisor.  Failure to transfer the interest within said period of time shall
constitute a breach of this Agreement.  The term "permanent  disability" shall
mean a  mental  or  physical  disability,  impairment,  or  condition  that is
reasonably  expected to prevent or actually  does  prevent  Franchisee  (or an
owner  controlling a Franchisee  entity) from  supervising  the management and
operation  of the  Restaurant  for a period of one hundred  twenty  (120) days
from the onset of such  disability,  impairment,  or condition.  In any event,
the Restaurant  shall at all times be managed by a Designated  Manager who has
complied with all of  Franchisor's  training  requirements,  regardless of any
death or permanent disability covered by this Section.

                             15.  TERM AND RENEWAL

      15.1  Term.  The  primary  term of this  Agreement  is for a  period  of
fifteen (15) years from the Effective Date, unless sooner terminated.

      15.2  Renewal.  At the end of the primary  term,  Franchisee  shall have
the option to renew its franchise  rights for an additional  fifteen (15) year
term, so long as Franchisee:

(30)  Has complied with all  provisions of this  Agreement  during the primary
term,  including  the  payment on a timely  basis of all  Royalties  and other
fees.  "Compliance"  shall  mean,  at  a  minimum,  that  Franchisee  has  not
received written  notification  from Franchisor of a breach more than four (4)
times during the primary term;

(31)  Is not in default or under  notification  of breach of this Agreement at
the time it gives notice under Section 17.3;

(32)  Agrees to upgrade  and  remodel  the  Restaurant  at  Franchisee's  sole
expense (the  necessity of which shall be at  Franchisor's  option) to conform
with the then-current Operations Manual requirements;

(33)  Executes a general  release,  in a form  satisfactory to Franchisor,  of
any and all claims against  Franchisor and its affiliates and their respective
shareholders,  officers,  directors,  employees,  and agents arising out of or
relating to this Agreement or the parties' relationship; and

(34)  Executes the then-current form of Franchise  Agreement,  which agreement
may  contain  terms  materially   different  from  those  in  this  Agreement,
including  terms  changing  the Royalty and other fee amounts;  provided  that
Franchisee shall not be required to pay a new Initial Franchise Fee.

      15.3  Exercise of Renewal.  Franchisee  may exercise its option to renew
by giving  written notice of such exercise to Franchisor not more than one (1)
year nor less than one hundred  eighty (180) days prior to the  expiration  of
the primary  term.  Franchisee  must also pay a One Thousand  Dollar  ($1,000)
renewal fee to Franchisor  concurrently with the execution of the then-current
Franchise  Agreement  to cover  Franchisor's  expenses  related  to  reviewing
Franchisee's  operations  and  approving the renewal.  If Franchisee  fails to
comply with any of the  conditions  listed above (other than  execution of the
new Franchise Agreement or payment of the renewal fee),  Franchisor shall give
notice to that  effect to  Franchisee  no later than  ninety  (90) days before
expiration of the primary term.

                         16.  DEFAULT AND TERMINATION

      16.1  Termination  by  Franchisee.  Franchisee  shall  have the right to
terminate  this Agreement if Franchisor  materially  fails to comply with this
Agreement  and  fails  to cure its  default  within  thirty  (30)  days  after
delivery of written  notice of the default  from  Franchisee.  Notwithstanding
the  foregoing,  if the  breach is  curable  but is of a nature  which  cannot
reasonably  be cured  within such thirty  (30) day period and  Franchisor  has
commenced  and is  continuing  to make good faith  efforts to cure the breach,
Franchisor shall be given an additional  reasonable period of time to cure the
same, and this Agreement  shall not terminate.  Any  termination by Franchisee
other than in  accordance  with this Section will be deemed a  termination  by
Franchisee without cause.

      16.2  Termination  by  Franchisor - Effective  Upon  Notice.  Franchisor
shall have the right,  at its option,  to  terminate  this  Agreement  and all
rights granted  Franchisee,  without  affording  Franchisee any opportunity to
cure any  default  (subject to any state laws to the  contrary,  in which case
state  law  shall  prevail),  effective  upon  delivery  to  Franchisee  of  a
termination notice, upon the occurrence of any of the following events:

            (10   Unauthorized  Opening.  If Franchisee  begins  operating the
Restaurant  without having obtained  Franchisor's  prior written  consent,  as
required in Section 6.9;

(35)  Unauthorized   Disclosure.   If   Franchisee   or   any   person   under
Franchisee's   control   intentionally   or   negligently   discloses  to  any
unauthorized person, or copies or reproduces,  the contents or any part of the
Operations  Manual or any other trade secrets or  confidential  information of
Franchisor or TQC;

(36)  Fraud or Conduct  Affecting the Marks.  If  Franchisee  commits fraud in
connection  with the  purchase or  operation  of the  Restaurant  or otherwise
engages  in conduct  that,  in the sole  judgment  of  Franchisor,  materially
impairs the goodwill associated with the Marks;

(37)  Abandonment.   If  Franchisee   ceases  to  operate  the  Restaurant  or
otherwise  abandons the Restaurant for a period of five (5) consecutive  days,
or any shorter  period that  indicates an intent by Franchisee to  discontinue
operation  of the  Restaurant,  unless  and  only  to  the  extent  that  full
operation of the  Restaurant  is suspended or terminated  due to fire,  flood,
earthquake,  or other  similar  causes  beyond  Franchisee's  control  and not
related to the availability of funds to Franchisee;

(38)  Insolvency;   Assignments.   If  Franchisee   becomes  insolvent  or  is
adjudicated  a bankrupt;  or any action is taken by  Franchisee,  or by others
against Franchisee,  under any insolvency,  bankruptcy,  or reorganization act
(this  provision  might not be enforceable  under federal  bankruptcy  law, 11
U.S.C.  §101 et seq.); or if Franchisee  makes an assignment for the benefit
of creditors; or a receiver is appointed for Franchisee;

(39)  Unsatisfied Judgments;  Levy; Foreclosure.  If any material judgment (or
several  judgments  which in the aggregate  are material) is obtained  against
Franchisee  and  remains  unsatisfied  or of record  for  thirty  (30) days or
longer  (unless a  supersedeas  or other  appeal bond has been  filed);  or if
execution is levied against Franchisee's  business or any of the property used
in operating the Restaurant and is not discharged  within five (5) days; or if
the real or personal  property of  Franchisee's  business  shall be sold after
levy by any sheriff, marshall, or constable;

(40)  Criminal  Conviction.  If Franchisee  (or any of its Bound  Parties,  as
defined in Section  20.1) is convicted of a felony,  a crime  involving  moral
turpitude,  or any crime or offense  reasonably likely, in the sole opinion of
Franchisor,  to materially and unfavorably affect the Licensed Methods, Marks,
and associated goodwill and reputation;

(41)  Failure to Make  Payments.  If  Franchisee  fails to pay any amounts due
Franchisor  or its  affiliates  within ten (10) days after  delivery of notice
that such fees or amounts are overdue;

(42)  Financial  Reporting.  If Franchisee  intentionally  underreports  Gross
Sales in any amount or  negligently  underreports  Gross Sales by five percent
(5%) or more during any reporting period;

(43)  Failure to Complete  Training or Open.  If  Franchisee  (or its Managing
Owner and Designated  Manager) fails to complete the initial  training program
to  Franchisor's  satisfaction  or to commence  operations  of the  Restaurant
within the required time period;

(44)  Misuse of Marks. If Franchisee  misuses or fails to follow  Franchisor's
directions  and  guidelines  concerning  use of the Marks and fails to correct
the misuse or  failure  within ten (10) days  after  delivery  of notice  from
Franchisor;

(45)  Repeated  Noncompliance.  If Franchisee  has received  three (3) notices
of default from  Franchisor  within a twelve (12) month period,  regardless of
whether the defaults were cured by Franchisee;

(46)  Right to  Possession  of  Property.  If  Franchisee  loses  the right to
occupy the  Restaurant's  premises  because of its default  under the lease or
Sublease or defaults  under any  agreement  related to use or operation of the
Restaurant; or

(47)  Unauthorized  Transfer.  If Franchisee  sells,  transfers,  or otherwise
assigns the  franchise,  an interest in the  franchise or  Franchisee  entity,
this Agreement, the Restaurant,  or a substantial portion of the assets of the
Restaurant without complying with the provisions of Section 16.

      16.3  Termination by Franchisor - Thirty Days Notice.  Franchisor  shall
have the right to terminate this  Agreement  (subject to any state laws to the
contrary,  in which case state law shall prevail),  effective upon delivery of
thirty (30) days' prior written notice to Franchisee,  if Franchisee  breaches
any other  provision  of this  Agreement,  including,  but not  limited to, if
Franchisee fails to comply with the Operations  Manual,  and fails to cure the
default  during such thirty (30) day  period.  In that event,  this  Agreement
will  terminate   without   further  notice  to  Franchisee,   effective  upon
expiration of the thirty (30) day period.  Notwithstanding  the foregoing,  if
the breach is curable,  but is of a nature  which cannot  reasonably  be cured
within  such  thirty  (30) day  period and  Franchisee  has  commenced  and is
continuing to make good faith efforts to cure the breach,  Franchisee shall be
given an  additional  reasonable  period  of time to cure the  same,  and this
Agreement shall not terminate.

      16.4  Late  Fee.  In  addition  to  its  other   rights  and   remedies,
Franchisor may charge  Franchisee a late fee of one hundred dollars ($100) per
violation  by  Franchisee  of  any  term  or  condition  of  this   Agreement,
including,  without  limitation,  failure to pay (or to have adequate  amounts
available  for  electronic  transfer  for)  amounts  owed  Franchisor  or  its
affiliates  or failure to timely  provide  required  reports.  This fee may be
changed or eliminated by Franchisor.

      16.5  Failure  to Comply  with  Reporting  Requirements.  If  Franchisee
fails  to  prepare  and  submit  any  statement  or  report   required   under
Section 15,  then  Franchisor  shall  have the  right  to  treat  Franchisee's
failure as good cause for  termination of this  Agreement.  In addition to all
other remedies available to Franchisor,  in the event that Franchisee fails to
prepare and submit any statement or report  required under  Section 15 for two
(2) consecutive  reporting  periods,  Franchisor  shall be entitled to make an
audit,  at the expense of Franchisee,  of  Franchisee's  books,  records,  and
accounts,  including  Franchisee's  bank  accounts.  The statements or reports
not  previously  submitted  shall be  prepared by or under the  direction  and
supervision  of  an  independent   certified  public  accountant  selected  by
Franchisor.  In  addition  to its other  rights and  remedies,  if  Franchisee
fails to comply with the reporting  requirements under Section 15,  Franchisor
shall have the right to  collect,  in  addition  to the late fee,  Six Hundred
Fifty  Dollars  ($650) per week for Royalty  payments and One Hundred  Dollars
($100) per week for  advertising  payments (or a greater  amount if Franchisor
reasonably  estimates that the  Restaurant is generating  higher Gross Sales),
provided  that any  amounts  will be  reconciled  and  adjusted as needed when
Franchisor receives actual Gross Sales amounts.

      16.6  Right  to  Repurchase.  Except  in the  case  of a  renewal  under
Section 17, upon  termination  or expiration of this Agreement for any reason,
Franchisor  shall have the option to purchase the Restaurant,  or a portion of
the assets of the Restaurant  (including any  furniture,  fixtures,  equipment
and  improvements),  and which may include,  at  Franchisor's  option,  all of
Franchisee's  leasehold  interest  in and to the real  estate  upon  which the
Restaurant is located,  but not including any other interest in real property.
The purchase  price for the assets to be  transferred  will be thirty  percent
(30%) of the Gross Sales of the  Restaurant  during the twelve  (12)  calendar
months  immediately  preceding the date of  termination or expiration and will
be adjusted by setting off any amount then owing by  Franchisee  to Franchisor
or  its  affiliates,   including  any  amounts  paid  by  Franchisor  to  cure
Franchisee's  defaults with third  parties such as landlords  (the decision to
pay such cure amounts to be the sole  decision of  Franchisor).  The following
additional terms shall apply to Franchisor's exercise of this option:

(48)  Franchisor's  option shall be exercisable by providing  Franchisee  with
written  notice of its  intention  to  exercise  the  option no later than the
effective date of termination,  in the case of termination  (unless Franchisee
terminates  without notice or Franchisor  terminates for cause,  in which case
Franchisor  shall have thirty (30) days after  receipt of actual notice of the
termination  or such  additional  time as is  reasonably  necessary  given the
circumstances),  or at least thirty (30) days prior to the  expiration  of the
term of the franchise, in circumstances where no renewal is granted;

(49)  Franchisor  and  Franchisee  agree that the terms and conditions of this
right and  option to  purchase  may be  recorded,  if  deemed  appropriate  by
Franchisor,  in the real  property  records,  and  Franchisor  and  Franchisee
further  agree to execute such  additional  documentation  as may be necessary
and appropriate to effectuate such recording;

(50)  The  closing for the  purchase  will take place no later than sixty (60)
days after delivery of written notice of  Franchisor's  exercise of its option
is given to Franchisee.  Franchisor has the unrestricted  right to assign this
option to  purchase at any time.  Franchisor  will pay the  purchase  price in
full at the closing or, at its option,  in twenty-four (24) equal  consecutive
monthly installments,  with interest at a rate equal to the prime lending rate
as of the  closing at  Franchisor's  primary  bank.  Franchisee  must sign all
documents of transfer  reasonably  necessary for purchase of the Restaurant by
Franchisor,  which documents shall include all customary  representations  and
warranties  from  Franchisee  as to ownership  and condition of, and title to,
the  assets  of  the  Restaurant  being   transferred.   All  assets  must  be
transferred free and clear of all liens and  encumbrances,  with all sales and
transfer  taxes paid by  Franchisee.  Franchisee  and its owners further agree
to sign general  releases,  in a form  satisfactory to Franchisor,  of any and
all claims  against  Franchisor  and its  shareholders,  officers,  directors,
employees, agents, successors, and assigns; and

(51)  Franchisee  agrees that it shall be obligated to operate the Restaurant,
according to this Agreement's terms,  during the period in which Franchisor is
deciding  whether to  exercise  its option to  purchase  and until the closing
takes  place,  and that a  condition  to  closing is that the  Restaurant  has
remained open during that time period.  Franchisor  may decide not to exercise
its option to purchase at any time before  closing if it  determines  that any
of the conditions noted above have not been or cannot be satisfied.

      In the event that  Franchisor  does not exercise its right to repurchase
Franchisee's  Restaurant as set forth above,  Franchisee  will be free,  after
such  termination or expiration,  to keep or to sell to any third party all of
the physical assets of its Restaurant;  provided,  however, that all Marks are
first removed in a manner approved in writing by Franchisor.

      16.7  Obligations  of  Franchisee  Upon  Termination  or  Expiration.
Franchisee is obligated  upon  termination  or expiration of this Agreement to
immediately:

(52)  Pay  all  Royalties  and  other  amounts  then  owed  Franchisor  or its
affiliates pursuant to this Agreement or otherwise;

(53)  Cease  identifying  itself as a QUIZNO'S  franchisee and cease using any
Marks,  trade  secrets,  signs,  symbols,   devices,  trade  names,  or  other
materials of Franchisor or TQC;

(54)  Immediately  cease to identify  the  Franchised  Location  as being,  or
having been,  associated with Franchisor and immediately cease using the Marks
and Licensed Methods;

(55)  Deliver to  Franchisor  all signs,  sign-faces,  advertising  materials,
forms,  and other materials  bearing any of the Marks or otherwise  identified
with Franchisor;

(56)  Immediately  deliver to Franchisor the  Operations  Manual and all other
information,  documents,  and copies which are  proprietary  to Franchisor and
TQC;

(57)  Promptly take such action  required to cancel all  fictitious or assumed
name or equivalent  registrations  relating to its use of any Marks or, at the
option of Franchisor, assign the same to Franchisor;

(58)  Notify the telephone company and all telephone  directory  publishers of
the  termination  or  expiration  of  Franchisee's  right to use any telephone
number and any regular,  classified,  or other  telephone  directory  listings
associated  with any Mark and to authorize their transfer to Franchisor or its
designee.   Franchisee   acknowledges   that,   as  between   Franchisee   and
Franchisor,  Franchisor  has the sole rights to and interest in all telephone,
telecopy,  or facsimile machine numbers and directory listings associated with
any Mark.  Franchisee  authorizes  Franchisor,  and hereby appoints Franchisor
and any of its  officers  as  Franchisee's  attorney-in-fact,  to  direct  the
telephone  company and all  telephone  directory  publishers  to transfer  any
telephone,  telecopy,  or facsimile  machine  numbers and  directory  listings
relating to the  Restaurant to Franchisor or its designee,  should  Franchisee
fail  or  refuse  to do so,  and  the  telephone  company  and  all  telephone
directory   publishers   may  accept  such  direction  or  this  Agreement  as
conclusive of  Franchisor's  exclusive  rights in such  telephone  numbers and
directory listings and Franchisor's authority to direct their transfer; and

(59)  Abide by all  restrictive  covenants  set  forth in  Section  20 of this
Agreement.
      16.8  State  and  Federal  Law.  THE  PARTIES   ACKNOWLEDGE   THAT,   IN
THE  EVENT   THAT  THE   TERMS  OF  THIS   AGREEMENT   REGARDING   TERMINATION
OR  EXPIRATION  ARE  INCONSISTENT   WITH  APPLICABLE  STATE  OR  FEDERAL  LAW,
SUCH  LAW  SHALL  GOVERN   FRANCHISEE'S   RIGHTS   REGARDING   TERMINATION  OR
EXPIRATION  OF  THIS  AGREEMENT.

      16.9  Assumption of  Management.  Franchisor  has the right (but not the
obligation),  under the circumstances described below, to enter the Restaurant
and  assume  the  Restaurant's   management  for  any  time  period  it  deems
appropriate.  If Franchisor  assumes the Restaurant's  management,  Franchisee
must pay  Franchisor  (in addition to the Royalty and  Marketing and Promotion
Fee) three percent (3%) of the  Restaurant's  Gross Sales,  plus  Franchisor's
direct  out-of-pocket  costs and  expenses,  during this time.  If  Franchisor
assumes the Restaurant's  management,  Franchisee acknowledges that Franchisor
will have a duty to utilize only reasonable  efforts and will not be liable to
Franchisee or its owners for any debts,  losses, or obligations the Restaurant
incurs,  or to any of Franchisee's  creditors for any supplies or services the
Restaurant purchases, while Franchisor manages it.

      Franchisor may assume the  Restaurant's  management  under the following
circumstances:

            (10   if Franchisee abandons the Restaurant; or

            (20   if  Franchisee  fails to comply with any  provision  of this
      Agreement  and  does  not  cure  the  failure  within  the  time  period
      Franchisor specifies in its notice to Franchisee.

The exercise of Franchisor's  rights under  subparagraphs  (a) or (b) will not
affect Franchisor's right to terminate this Agreement.

                          17.  BUSINESS RELATIONSHIP

      17.1  Independent  Businesspersons.  The parties agree that each of them
is an  independent  businessperson,  their only  relationship  is by virtue of
this  Agreement,   and  no  fiduciary   relationship  is  created  under  this
Agreement.  Neither  party is liable or  responsible  for the other's debts or
obligations,  nor shall  either  party be  obligated  for any  damages  to any
person or property directly or indirectly  arising out of the operation of the
other party's  business.  Franchisor and Franchisee agree that neither of them
will hold  themselves out to be the agent,  employer,  or partner of the other
and that  neither  of them has the  authority  to bind or incur  liability  on
behalf of the other.

      17.2  Payment  of Third  Party  Obligations.  Franchisor  shall  have no
liability for  Franchisee's  obligations to pay any third parties,  including,
without  limitation,  any product  vendors,  or for any sales,  use,  service,
occupation,  excise, gross receipts,  income,  property, or other taxes levied
upon  Franchisee,  Franchisee's  property,  the  Restaurant,  or Franchisor in
connection  with the sales made or business  conducted by  Franchisee  (except
any taxes  Franchisor  is  required  by law to collect  from  Franchisee  with
respect to purchases from Franchisor).

      17.3  Indemnification.  Franchisee  agrees  to  indemnify,  defend,  and
hold  harmless  Franchisor,  TQC,  and their  affiliates,  and the  respective
shareholders,   directors,   officers,   employees,  agents,  successors,  and
assignees  of  Franchisor,   TQC,  and  their  affiliates  (the  ''Indemnified
Parties"),  against, and to reimburse them for, all claims,  obligations,  and
damages  described in this Section 19.3,  any and all third party  obligations
described in Section 19.2,  and any and all claims and liabilities directly or
indirectly  arising out of the  operation of the  Restaurant or the use of the
Marks  and  Licensed  Methods  in any  manner,  unless  (and  then only to the
extent) caused by the  Indemnified  Party's  negligence.  For purposes of this
indemnification,  claims  shall mean and include all  obligations,  actual and
consequential  damages,  and costs  reasonably  incurred in the defense of any
claim  against  the  Indemnified  Parties,   including,   without  limitation,
reasonable  accountants',  attorneys',  and  expert  witness  fees,  costs  of
investigation and proof of facts, court costs, other litigation expenses,  and
travel and living  expenses.  Each  Indemnified  Party shall have the right to
defend  any  such  claim  against  it at  Franchisee's  expense  and  agree to
settlements or take any other  remedial,  corrective,  or other actions.  This
indemnity  shall  continue  in  full  force  and  effect   subsequent  to  and
notwithstanding the expiration or termination of this Agreement.

                          18.  RESTRICTIVE COVENANTS

      18.1  Non-Competition  During Term.  Franchisee  acknowledges  that,  in
addition  to  the  license  of  the  Marks,   Franchisor   also  has  licensed
commercially  valuable  information  which  comprises  the  Licensed  Methods,
including,  without  limitation,   operations,   marketing,  advertising,  and
related  information  and  materials,  and that the value of this  information
arises  not only  from  the  time,  effort,  and  money  which  went  into its
compilation but also from the usage by all franchisees.  Franchisee  therefore
agrees  that,  other  than  the  Restaurant,  neither  Franchisee  nor  any of
Franchisee's officers,  directors,  shareholders,  members,  partners or other
owners,   nor  any  spouse  of   Franchisee   or  any  of  these   individuals
(collectively, "Bound Parties"), shall during the term of this Agreement:

(60)  have any direct or indirect  interest as a disclosed or beneficial owner
in a "Competitive Business," as defined below, wherever located or operating;

(61)  perform services as a director, officer, manager, employee,  consultant,
representative,  agent,  or otherwise  for a  Competitive  Business,  wherever
located or operating;

(62)  divert or  attempt  to divert any  business  related to the  Restaurant,
Franchisor's  business,  or any other QUIZNO'S franchisee by direct inducement
or  otherwise,  or divert or attempt to divert the  employment of any employee
of Franchisor, TQC, or another franchisee, to any Competitive Business; or

(63)  directly or  indirectly  solicit or employ any person who is employed by
Franchisor or TQC.

      The term "Competitive  Business," as used in this Agreement,  shall mean
any  business  operating,  or  granting  franchises  or  licenses to others to
operate,  a restaurant or other food service  business  deriving more than ten
percent (10%) of its gross receipts,  excluding gross receipts relating to the
sale of alcoholic beverages,  from the sale of submarine,  hoagie,  hero-type,
and/or deli-style  sandwiches (other than another QUIZNO'S Restaurant operated
by  Franchisee);  provided,  however,  neither  Franchisee nor the other Bound
Parties shall be prohibited from owning  securities in a Competitive  Business
if  such  securities  are  listed  on  a  stock  exchange  or  traded  on  the
over-the-counter  market and represent five percent (5%) or less of that class
of securities  issued and outstanding.  Franchisee agrees that nothing in this
Section 20 shall be construed to grant Franchisee any protected territory.

      18.2  Branded  Business.  During  the  term of this  Agreement,  neither
Franchisee  nor any other Bound Party will  operate,  directly or  indirectly,
any Branded Business within a one-quarter  (1/4) mile radius of the Restaurant
without  the  written  consent  of  Franchisor,  which  consent  shall  not be
unreasonably   withheld.  The  term  "Branded  Business"  means  any  business
marketed by a franchisor or chain under a locally,  regionally,  or nationally
known or registered trademark or service mark.

      18.3  Post-Termination  Covenant  Not to  Compete.  For a period  of two
(2)  years  from the  effective  date of  termination  or  expiration  of this
Agreement for any reason,  or the date on which Franchisee and all other Bound
Parties  begin to  comply  with this  Section,  whichever  is  later,  neither
Franchisee  nor any other  Bound  Party  shall  have any  direct  or  indirect
interest as a disclosed or  beneficial  owner,  investor,  partner,  director,
officer,  employee,  consultant,   representative,  agent,  or  in  any  other
capacity in any Competitive  Business  located or operating  within a five (5)
mile  radius  of the  former  Franchised  Location  or  within a five (5) mile
radius  of  any  other  QUIZNO'S  Restaurant  existing  on  the  later  of the
effective  date of  termination or expiration of this Agreement or the date on
which  Franchisee  and all  other  Bound  Parties  begin to  comply  with this
Section.  The  restrictions  of this Section  shall not be  applicable  to the
ownership  of shares of a class of  securities  listed on a stock  exchange or
traded on the  over-the-counter  market that  represent  five  percent (5%) or
less  of the  number  of  shares  of  that  class  of  securities  issued  and
outstanding.  Franchisee  and the other Bound  Parties  expressly  acknowledge
that they  possess  skills and  abilities  of a general  nature and have other
opportunities  for exploiting  such skills.  Consequently,  enforcement of the
covenants  made in this  Section  will  not  deprive  them of  their  personal
goodwill or ability to earn a living.

      18.4  Additional   Remedies  for  Breach.   In  addition  to  any  other
remedies or damages allowed under this Agreement,  if Franchisee  breaches the
covenants  set forth in Sections  20.1,  20.2, or 20.3,  Franchisee  shall pay
Franchisor a fee equal to Franchisor's  then-current Initial Franchise Fee for
each  Competitive  Business or Branded  Business  opened in  violation  of the
covenants,  plus eight  percent  (8%) of such  Business’s  gross  sales  until
expiration of the noncompetition period set forth in Section 20.3.

      18.5  Confidentiality  of  Proprietary  Information.   Franchisee  shall
treat all  information  it  receives  which  comprises  the  Licensed  Methods
(including,  without  limitation,  the Operations  Manual) as proprietary  and
confidential  and  not use  such  information  in an  unauthorized  manner  or
disclose the same to any unauthorized person.  Franchisee agrees that all such
material is the sole property of Franchisor and TQC.  Franchisee  acknowledges
that the Marks and the Licensed  Methods have  valuable  goodwill  attached to
them,  that  their  protection  and  maintenance  are  essential  to  TQC  and
Franchisor,  and that any  unauthorized  use or  disclosure  of the  Marks and
Licensed  Methods will result in irreparable  harm to TQC and Franchisor.  All
ideas,  concepts,  techniques,  or materials concerning a QUIZNO'S Restaurant,
whether or not  protectable  intellectual  property and whether  created by or
for  Franchisee  or its owners or  employees,  must be promptly  disclosed  to
Franchisor  and will be  deemed  Franchisor's  and  TQC's  sole and  exclusive
property,  part of the QUIZNO'S System,  and works  made-for-hire  for TQC and
Franchisor.   To  the   extent   any  item  does  not   qualify   as  a  "work
made-for-hire"  for TQC and Franchisor,  Franchisee  assigns ownership of that
item,  and all related  rights to that item,  to TQC and  Franchisor  and must
sign whatever  assignment or other  documents  TQC and  Franchisor  request to
show  ownership or to help TQC and  Franchisor  obtain  intellectual  property
rights in the item.

      18.6  Confidentiality  Agreement.   Franchisor  reserves  the  right  to
require  that  Franchisee  cause  each of its  Bound  Parties  and  Designated
Managers (and, if applicable,  the spouse of a Designated  Manager) to execute
a   Nondisclosure   and   Noncompetition   Agreement   containing   the  above
restrictions in a form approved by Franchisor.

                                 19.  DISPUTES

      19.1  Governing  Law/Consent  to Venue and  Jurisdiction.  Except to the
extent  governed by the United  States  Trademark  Act of 1946 (Lanham Act, 15
U.S.C.  §1051  et  seq.) or  other  federal  law,  this  Agreement  shall be
interpreted  under the laws of the State of Colorado,  and any dispute between
the parties,  whether arising under this Agreement or from any other aspect of
the parties'  relationship,  shall be governed by and determined in accordance
with the substantive  laws of the State of Colorado,  which laws shall prevail
in  the  event  of  any  conflict  of  law.  Franchisee  and  Franchisor  have
negotiated  regarding a forum in which to resolve any disputes arising between
them and have agreed to select a forum in order to promote  stability in their
relationship.  Therefore,  if a claim  is  asserted  in any  legal  proceeding
involving  Franchisee  or any Bound Party and  Franchisor,  the parties  agree
that the  exclusive  venue for disputes  between them shall be in the District
Court  for the  City &  County  of  Denver,  Colorado,  or the  United  States
District  Court for the  District  of  Colorado,  and each  party  waives  any
objection  it  might  have to the  personal  jurisdiction  of or venue in such
courts.

      19.2  Waiver  of Jury  Trial.  Franchisor,  Franchisee,  and  the  Bound
Parties  each  waive  their  right to a trial by jury.  Franchisee,  the Bound
Parties,  and Franchisor  acknowledge  that the parties'  waiver of jury trial
rights provides the parties with the mutual benefit of uniform  interpretation
of this Agreement and resolution of any dispute  arising out of this Agreement
or any aspect of the parties'  relationship.  Franchisee,  the Bound  Parties,
and  Franchisor  further  acknowledge  the receipt and  sufficiency  of mutual
consideration for such benefit.

      19.3  Remedies.  Except as set forth in  Section  21.4,  the court  will
have  the  right  to  award  any   relief   which  it  deems   proper  in  the
circumstances,  including, without limitation, money damages (with interest on
unpaid  amounts  from the  date  due),  lost  profits,  specific  performance,
injunctive  relief,  and attorneys' fees and costs. The parties agree that any
claim for lost  earnings  or  profits  by  Franchisee  shall be  limited  to a
maximum  amount equal to the net profits of the  Restaurant for the prior year
as shown on  Franchisee's  federal  income tax  return.  The  parties  further
agree that,  in addition to such other damages  awarded by the court,  if this
Agreement is terminated because of a Franchisee  default,  Franchisee shall be
liable to  Franchisor  for a lump sum amount equal to the net present value of
the Royalties  and  Marketing  and  Promotion  Fees that would have become due
following  termination of this  Agreement for the period this Agreement  would
have  remained  in  effect  but  for  Franchisee's   default.   Royalties  and
Marketing and Promotion  Fees for purposes of this Section shall be calculated
based on the  Restaurant's  average  monthly  Gross  Sales for the twelve (12)
months preceding the termination date.

      19.4  Limitation of Claims.  Franchisee  and the Bound Parties agree not
to bring any claim  asserting  that any of the Marks are generic or  otherwise
invalid.  Except with regard to Franchisee's  obligation to pay Franchisor and
its  affiliates  Royalty  payments,  the Marketing and Promotion Fee and other
advertising  fees,  and other  payments due from  Franchisee  pursuant to this
Agreement  or  otherwise,  any claims  between the parties  must be  commenced
within one (1) year from the date on which the party  asserting the claim knew
or should  have known of the facts  giving  rise to the  claim,  or such claim
shall be barred.  The parties understand that such time limit might be shorter
than  otherwise  allowed by law.  Franchisee  and the Bound Parties agree that
their sole  recourse for claims  arising  between the parties shall be against
Franchisor or its  successors  and assigns.  Franchisee  and the Bound Parties
agree that the shareholders,  directors,  officers,  employees,  and agents of
Franchisor  and its affiliates  shall not be personally  liable nor named as a
party in any action  between  Franchisor  and  Franchisee  or any Bound Party;
provided that this shall not preclude claims  Franchisee has directly  against
an Area  Director.  Franchisor,  Franchisee,  and the  Bound  Parties  further
agree that, in connection with any such  proceeding,  each must submit or file
any claim which would  constitute  a  compulsory  counterclaim  (as defined by
Rule13 of the Federal Rules of Civil  Procedure)  within the same  proceeding
as the claim to which it  relates.  Any such claim which is not  submitted  or
filed as described  above will be forever  barred.  The parties agree that any
proceeding will be conducted on an individual,  not a class-wide,  basis,  and
that a proceeding  between  Franchisor and Franchisee or the Bound Parties may
not be consolidated with another  proceeding  between Franchisor and any other
person  or  entity.  No party  will be  entitled  to an award of  punitive  or
exemplary  damages (provided that this limitation shall not apply to statutory
penalties  such as those  set  forth in 15  U.S.C.  §  1117(a)).  No  previous
course of dealing shall be admissible to explain,  modify,  or contradict  the
terms of this  Agreement.  No implied  covenant of good faith and fair dealing
shall be used to alter the express terms of this Agreement.

                            20.  SECURITY INTEREST

      20.1  Collateral.  Franchisee  grants  Franchisor  a  security  interest
("Security Interest") in all of the furniture,  fixtures,  equipment, signage,
and realty  (including  Franchisee's  interests  under all real  property  and
personal  property  leases)  of the  Restaurant,  together  with  all  similar
property  now  owned  or   hereafter   acquired,   additions,   substitutions,
replacements,  proceeds,  and  products  thereof,  wherever  located,  used in
connection  with the  Restaurant.  All items in which a security  interest  is
granted are referred to as the "Collateral."

      20.2  Indebtedness  Secured.  The Security Interest is to secure payment
of the following (the "Indebtedness"):

(64)  All amounts due under this Agreement or otherwise by Franchisee;

(65)  All sums which Franchisor may, at its option,  expend or advance for the
maintenance,  preservation,  and  protection  of  the  Collateral,  including,
without limitation,  payment of rent, taxes,  levies,  assessments,  insurance
premiums,  and  discharge  of  liens,  together  with  interest,  or any other
property given as security for payment of the Indebtedness;

(66)  All expenses,  including  reasonable  attorneys'  fees, which Franchisor
incurs in connection  with collecting any or all  Indebtedness  secured hereby
or in enforcing or protecting its rights under the Security  Interest and this
Agreement; and

(67)  All  other   present  or  future,   direct  or  indirect,   absolute  or
contingent,  liabilities,  obligations,  and  indebtedness  of  Franchisee  to
Franchisor  or  third-parties  under  this  Agreement,  however  created,  and
specifically  including  all or  part  of any  renewal  or  extension  of this
Agreement,  whether or not  Franchisee  executes  any  extension  agreement or
renewal instruments.

      20.3  Additional  Documents.  Franchisee  will  from  time  to  time  as
required by  Franchisor  join with  Franchisor  in  executing  any  additional
documents  and  one or  more  financing  statements  pursuant  to the  Uniform
Commercial Code (and any assignments,  extensions,  or modifications  thereof)
in form satisfactory to Franchisor.

      20.4  Possession  of  Collateral.   Upon  default  and   termination  of
Franchisee's rights under this Agreement,  Franchisor shall have the immediate
right to possession and use of the Collateral.

      20.5  Remedies  of  Franchisor  in Event of Default.  Franchisee  agrees
that,  upon the  occurrence  of any default set forth  above,  the full amount
remaining  unpaid  on  the  Indebtedness  secured  shall,  at  the  option  of
Franchisor  and  without  notice,  become  due and  payable  immediately,  and
Franchisor  shall then have the rights,  options,  duties,  and  remedies of a
secured  party  under,  and  Franchisee  shall have the rights and duties of a
debtor under,  the Uniform  Commercial  Code of Colorado,  including,  without
limitation,  Franchisor's  right  to take  possession  of the  Collateral  and
without  legal  process  to enter any  premises  where the  Collateral  may be
found.  Any  sale  of the  Collateral  may be  conducted  by  Franchisor  in a
commercially  reasonable  manner.  Reasonable  notification  of the  time  and
place of any sale shall be satisfied by mailing to Franchisee  pursuant to the
notice provisions set forth below.

      20.6  Special Filing as Financing  Statement.  This  Agreement  shall be
deemed a Security Agreement and a Financing  Statement.  This Agreement may be
filed  for  record  in the real  estate  records  of each  county in which the
Collateral,  or any  part  thereof,  is  situated  and may  also be filed as a
Financing  Statement  in the  counties  or in the office of the  Secretary  of
State,  as  appropriate,  in respect of those items of Collateral of a kind or
character  defined in or subject to the  applicable  provisions of the Uniform
Commercial Code as in effect in the appropriate jurisdiction.

                         21.  MISCELLANEOUS PROVISIONS

      21.1  Modification.  No  amendment,  waiver,  or  modification  of  this
Agreement shall be effective  unless it is in writing and signed by Franchisor
and  Franchisee.  Franchisee  acknowledges  that  Franchisor  may  modify  its
standards and specifications and operating and marketing  techniques set forth
in the Operations Manual  unilaterally  under any conditions and to the extent
to which Franchisor deems necessary to protect,  promote, or improve the Marks
and the quality of the Licensed Methods.

      21.2  Entire  Agreement.  This Agreement  contains the entire  agreement
between the parties and  supersedes  any and all prior  agreements  concerning
its subject matter.  Franchisee  agrees and understands  that Franchisor shall
not be liable or obligated for any oral  representations  or commitments  made
prior to the  execution  of this  Agreement  or for  claims  of  negligent  or
fraudulent  misrepresentation,  and that no  modifications  of this  Agreement
shall be  effective  except  those in  writing  and  signed  by both  parties.
Franchisor does not authorize and will not be bound by any  representation  of
any nature other than those  expressed in this Agreement.  Franchisee  further
acknowledges  and  agrees  that no  representations  have  been  made to it by
Franchisor  regarding  projected sales volumes,  market  potential,  revenues,
profits of Franchisee's  Restaurant,  or operational  assistance other than as
stated in this Agreement or in any disclosure  document provided by Franchisor
or  its   representatives.   Any  policies  that  the  Franchisor  adopts  and
implements  from time to time are  subject to  change,  are not a part of this
Agreement, and are not binding on Franchisor.

      21.3  Delegation  by  Franchisor.  From time to time,  Franchisor  shall
have the  right to  delegate  the  performance  of any  portion  or all of its
obligations  and duties  under this  Agreement to third  parties,  whether the
same are agents of Franchisor  or Area  Directors or  independent  contractors
with which  Franchisor  has  contracted to provide such  services.  Franchisee
agrees in advance to any such  delegation  by Franchisor of any portion or all
of its obligations  under this Agreement.  Franchisee  acknowledges and agrees
that Franchisor may not be bound,  and this Agreement may not be modified,  by
any Area  Director  without  Franchisor's  prior written  consent.  Franchisee
acknowledges  and agrees that any such delegation of  Franchisor's  duties and
obligations  to Area Directors does not assign or confer any rights under this
Agreement  upon Area  Directors  and that Area  Directors  are not third party
beneficiaries of this Agreement.

      21.4  Agreement  Effective.  This Agreement shall not be effective until
accepted by  Franchisor  as  evidenced  by dating and signing by an officer of
Franchisor.

      21.5  Review of  Agreement.  Franchisee  acknowledges  that it has had a
copy of Franchisor's  Uniform  Franchise  Offering  Circular in its possession
for not less than ten (10)  full  business  days,  and this  Agreement  in its
possession  for not less than five (5) full business  days,  during which time
Franchisee has had the opportunity to submit same for professional  review and
advice of Franchisee's choosing prior to freely executing this Agreement.

      21.6  Attorneys'  Fees.  In the  event  of any  default  on the  part of
either party to this Agreement,  in addition to all other remedies,  the party
in default will pay the prevailing party (as determined by the  decision-maker
in the  proceeding)  all amounts due and all  damages,  costs,  and  expenses,
including reasonable  attorneys' fees, incurred by the prevailing party in any
legal action or other  proceeding as a result of such  default,  plus interest
at the  lesser  of two  percent  (2%)  per  month  or the  highest  commercial
contract  interest  rate  allowable  by law  accruing  from  the  date of such
default.  Additionally,  if Franchisee  withholds any amounts due  Franchisor,
Franchisee  shall  reimburse  Franchisor's  costs of collecting  such amounts,
including reasonable attorneys' fees and expenses.

      21.7  Injunctive  Relief.  Nothing  herein shall  prevent  Franchisor or
Franchisee  from seeking  injunctive  relief in  appropriate  cases to prevent
irreparable harm.

      21.8  No Waiver.  No waiver of any  condition  or covenant  contained in
this  Agreement,  or failure to exercise a right or remedy,  by  Franchisor or
Franchisee  shall be  considered  to imply or  constitute a further  waiver by
Franchisor or Franchisee of the same or any other condition,  covenant, right,
or remedy.

      21.9  No Right to Set Off.  Franchisee  shall not be  allowed to set off
amounts owed to Franchisor or its  affiliates  for  Royalties,  fees, or other
amounts due against any monies owed to  Franchisee,  which right of set off is
hereby expressly waived by Franchisee.

      21.10 Invalidity.  If any  provision  of this  Agreement is held invalid
by any tribunal in a final  decision  from which no appeal is or can be taken,
such  provision  shall be deemed  modified to eliminate  the invalid  element,
and, as so modified,  such provision  shall be deemed a part of this Agreement
as though  originally  included.  The remaining  provisions of this  Agreement
shall not be affected by such modification.

      21.11 Notices.  All notices  required  to be given under this  Agreement
shall be given in writing, by certified mail, return receipt requested,  or by
an overnight  delivery  service  providing  documentation  of receipt,  at the
address  set  forth  in the  first  paragraph  of  this  Agreement,  or at the
Franchised Location's address (after Franchisee's  Restaurant has first opened
for  business),  or at such other  addresses as Franchisor  or Franchisee  may
designate  from time to time,  and shall be deemed  delivered  (a) on the date
shown  on the  return  receipt  or in the  courier's  records  as the  date of
delivery or (b) on the date of first  attempted  delivery,  if actual delivery
cannot for any reason be made.

      21.12 Acknowledgment.  BEFORE SIGNING THIS AGREEMENT,  FRANCHISEE SHOULD
READ  IT  CAREFULLY  WITH  THE   ASSISTANCE  OF  LEGAL   COUNSEL.   FRANCHISEE
ACKNOWLEDGES THAT :

            (A)   THE SUCCESS OF THIS BUSINESS  VENTURE  INVOLVES  SUBSTANTIAL
      RISKS AND DEPENDS UPON FRANCHISEE'S  ABILITY AS AN INDEPENDENT  BUSINESS
      PERSON  AND  ITS  ACTIVE  PARTICIPATION  IN  THE  DAILY  AFFAIRS  OF THE
      BUSINESS, AND

            (B)   NO  ASSURANCE  OR  WARRANTY,  EXPRESS OR  IMPLIED,  HAS BEEN
      GIVEN  AS TO THE  POTENTIAL  SUCCESS  OF SUCH  BUSINESS  VENTURE  OR THE
      EARNINGS LIKELY TO BE ACHIEVED, AND

            (C)   NO  STATEMENT,  REPRESENTATION,  OR  OTHER  ACT,  EVENT,  OR
      COMMUNICATION,  EXCEPT AS SET FORTH IN THIS DOCUMENT AND IN ANY OFFERING
      CIRCULAR SUPPLIED TO FRANCHISEE,  IS BINDING ON FRANCHISOR IN CONNECTION
      WITH THE SUBJECT MATTER OF THIS AGREEMENT.

      IN WITNESS  WHEREOF,  the parties have executed this Agreement as of the
date first above set forth.

THE QUIZNO'S FRANCHISE COMPANY            FRANCHISEE

By:_______________________________        _______________________________
     Its:_________________________        Individually

Date:                                     Date:__________________________

                                          OR:

                                          (If    a    corporation,     limited
                                          liability company,  partnership,  or
                                          other business entity)

                                          _______________________________
                                          Company Name

                                          By:____________________________
                                          Its:___________________________

                                          Date:__________________________

                                 Exhibit 1-1

                                 EXHIBIT 1 TO
                             FRANCHISE AGREEMENT

                             ADDENDUM TO QUIZNO'S
                              FRANCHISE AGREEMENT

      1.    Target Area.  The Target  Area,  referred to in Section 3.1 of the
Agreement, shall be:

      The  Franchised  Location  shall be deemed  approved  upon  approval  by
Franchisor of the site and lease pursuant to Section 6 of the Agreement.

      Franchisee  acknowledges  and  warrants (1) that  Franchisor's  approval
does  not  constitute  a  guarantee,  recommendation,  or  endorsement  of the
Franchised  Location or Target Area and that the success of the  Restaurant to
be operated at a Franchised Location is dependent upon Franchisee's  abilities
as an independent businessperson;  and, when a Franchised Location is approved
by Franchisor,  (2) that  Franchisor has complied with its  obligations  under
the Agreement to assist  Franchisee by providing  criteria for the  Franchised
Location  and  determining  fulfillment  of the  requisite  criteria  for  the
Franchised  Location,  such  determination  based on  information  provided by
Franchisee.

(1)   Initial  Franchise  Fee.  Franchisee  shall pay to Franchisor an Initial
      Franchise  Fee,  referenced  in  Section  4.1  of  the  Agreement,   of:
      $_____________________.

(2)   Lease   Assistance   Program   (Referenced   in   Section   6.3  of  the
      Agreement).  Check One:
            •     Not Participating

            •     Participating   (Lease   Review  Fee:   $2,200;   Franchisee
                  required to execute Sublease)

(3)   Training.  The following  individuals shall attend Franchisor's  initial
      training  program,  as  described  in  Section  7.1  of  the  Agreement:
      __________________________  ___________________________________________,
      and, of these individuals, the Designated Manager shall be:            .

THE QUIZNO'S FRANCHISE COMPANY            FRANCHISEE

By:__________________________             By:___________________________
     Its:____________________                  Its:_____________________

                                 Exhibit 2-5

                                 EXHIBIT 2 TO
                             FRANCHISE AGREEMENT

                                  ADDENDUM TO
                            FRANCHISE AGREEMENT --
                             QUIZNO'S CLASSIC SUBS
                               EXPRESS FACILITY

      THIS  ADDENDUM  to the  Franchise  Agreement  ("Agreement")  is  made on
______________________  between The Quizno's Franchise Company  ("Franchisor")
and  the  undersigned   "Franchisee."   The  following  amends  and  shall  be
incorporated  into the  Agreement.  In the event of any  conflict  between the
terms of the  Agreement  and the  terms of this  Addendum,  the  terms of this
Addendum shall  control.  All  capitalized  terms not defined in this Addendum
have the  respective  meanings  set  forth in the  Agreement.  Franchisor  and
Franchisee agree as follows:

(4)   Express   Restaurant.   All   references   in  the   Agreement   to  the
      "Restaurant,"  as defined in Section 1.1 of the  Agreement,  are deleted
      and the  reference  "Express  Restaurant"  is inserted  in their  place.
      Except  as  otherwise  noted  in this  Addendum  or the  Agreement,  all
      applicable  terms,  conditions,   and  requirements  set  forth  in  the
      Agreement   applicable   to  the   Restaurants   apply  to  the  Express
      Restaurants.  Franchisor's  approval of the development and operation of
      an Express  Restaurant,  as  required  pursuant  to  Section  3.3 of the
      Agreement,  is hereby  granted.  The terms of the  Agreement and of this
      Addendum  apply only to the Express  Restaurant  operations and products
      offered or sold from or through  the Express  Restaurant  and not to the
      other  business  of  Franchisee  located in the Host  Facility  (defined
      below) except as specifically set forth in this Addendum.

(5)   Franchised  Location.   The  Franchised  Location  shall  be  within  or
      adjacent  to the  following  facility  (also  referred  to as the  "Host
      Facility"):

If the placement  and operation of the Express  Restaurant in or in connection
with the Host  Facility  require  the  consent  of the owner,  franchisor,  or
licensor of the Host Facility,  Franchisee hereby represents and warrants that
such  consent  has been  obtained  in writing,  and such  representation  is a
condition  precedent  to the  grant of  Franchisee's  right to  establish  and
operate the Express Restaurant.

(6)   Royalty.  Section 5.1 is deleted and replaced with the following:

      Franchisee  agrees to pay to  Franchisor  a weekly  royalty  ("Royalty")
      equal to eight  percent  (8%) of the total  amount  of its  Gross  Sales
      generated from or through the Express Restaurant.

(7)   Beverages.  All fountain  drink sales that occur in a QUIZNO'S  logo cup
      will be included in Gross Sales.  Franchisee  may either have a separate
      fountain  for the  Express  Restaurant,  or the Express  Restaurant  may
      share a common self-service fountain with the rest of the Host Facility.

(8)   Approval  of  Franchised   Location.   Franchisor  hereby  approves  the
      above-stated   location   as   the   Franchised   Location.   Franchisee
      acknowledges  and  warrants  that  (1) Franchisor's  approval  does  not
      constitute  a  guarantee,   recommendation,   or   endorsement   of  the
      Franchised  Location and that the success of the Express  Restaurant  is
      dependent upon Franchisee's abilities as an independent  businessperson;
      and   (2) Franchisor   has  complied  with  its  obligations  under  the
      Agreement  to  assist  Franchisee  with  respect  to  criteria  for  the
      Franchised  Location  and  determining   fulfillment  of  the  requisite
      criteria  for the  Franchised  Location,  such  determination  based  on
      information provided by Franchisee.

(9)   Signs.  Section  6.6 of the  Agreement  is  supplemented  by adding  the
      following:

      Franchisee   agrees  to  use  best   efforts  to  maximize  the  use  of
      Franchisor's   Marks  on  pre-existing  and  new  signs  placed  at  the
      Franchised  Location  and on the  premises  of the  Host  Facility.  All
      signs  and  their  placement  configuration  shall be  approved  by both
      Franchisee and  Franchisor,  which  approval  shall not be  unreasonably
      withheld  and shall be based on  parameters  which  shall best  maximize
      sign usage to the extent  allowable under any landlord  restrictions and
      any  applicable  local  laws,  zoning  ordinances,   and  other  similar
      requirements.  Franchisor  hereby approves all uses by Franchisee of the
      marks,  symbols,  names,  and identifying  marks of the Host Facility at
      the Franchised Location.

(10)  Equipment.  Section 6.7 is deleted and replaced by the following:

      Franchisee  shall  purchase,  lease,  or  otherwise  obtain  for  use in
      connection  with the Express  Restaurant such equipment of a type and in
      an amount  which  complies  with the  standards  and  specifications  of
      Franchisor.    Franchisee   acknowledges   that   the   type,   quality,
      configuration,   capability,   and/or   performance  of  the  Restaurant
      equipment are all standards and  specifications  which are a part of the
      Licensed  Methods,  and,  therefore,  such  equipment must be purchased,
      leased, or otherwise obtained in accordance with Franchisor's  standards
      and  specifications and only from suppliers or other sources approved by
      Franchisor.  Franchisee  shall  configure  its  computer  cash  register
      system  in use in the Host  Facility  ("System")  to  accurately  record
      every sale or other  transaction.  Franchisee  shall submit any required
      reports  in a  format  designated  from  time  to  time  by  Franchisor.
      Franchisee  grants  Franchisor  reasonable access to its records only on
      the System and  authorizes  Franchisor  to obtain its sales,  sales mix,
      and revenue  information from the System.  Franchisee  acknowledges that
      Franchisor will use information from required reports  primarily to make
      business and marketing decisions.

(11)  Express  Restaurant  Operations.  Section  11.1(d) of the  Agreement  is
      supplemented by adding the following:

      Franchisor  and Franchisee  acknowledge  and agree that the products and
      services  offered  for  sale  from  the  Express  Restaurant,   and  the
      standards and  specifications  of Franchisor,  may differ from that of a
      traditional  QUIZNO'S  Restaurant  and will be  subject  to  alternative
      standards and specifications developed and made available by Franchisor.

(12)  Grand  Opening.  Section 12.2 is amended to require  Franchisee to spend
      a minimum  of Three  Thousand  Dollars  ($3,000)  for the grand  opening
      program.  All other terms of Section 12.2 remain the same.

(13)  Local Advertising.  Section 12.4 of the Agreement is deleted.

(14)  Regional  Advertising  Programs.  The  following  is added at the end of
      Section 12.5:

      Notwithstanding  the provisions of Section 12.5,  Franchisee will not be
      required to contribute  any funds to a Regional  Advertising  program or
      to  participate in either a Regional  Advertising  program or a Regional
      Advertising cooperative.

(15)  Restrictions  on Services and  Products.  The  following is added at the
      end of Section 13.3:

      Franchisee  agrees that,  during the term of the Agreement,  it will not
      offer or sell any  Sub-Sandwiches  or any type of Branded  Sandwich from
      or through  the Host  Facility  other than from or through  the  Express
      Restaurant.   "Sub-Sandwich"   is  defined  as  a   submarine,   hoagie,
      hero-type,  or  deli-style  sandwich.  "Branded  Sandwich" is defined as
      any sandwich marketed by a fast food franchisor or chain,  whose primary
      menu  items  consist of  sandwiches,  under a  locally,  regionally,  or
      nationally known or registered trade name,  trademark,  or service mark.
      Except for  Sub-Sandwich or Branded  Sandwich  products,  Franchisee may
      sell  other  food  products  from or  through  the  portion  of the Host
      Facility that does not comprise the Express Restaurant.

(16)  Marks.  Section  14.1 of the  Agreement  is  supplemented  by adding the
      following:

      Franchisor  and Franchisee  acknowledge  and agree that the primary Mark
      to be used to identify,  market, and promote the Express Restaurant will
      be "QUIZNO'S  EXPRESS  CLASSIC SUBS." All other  references to the Marks
      set forth in the Agreement include this primary Mark.

(17)  Financial Reports.   The following new Section 15.1(e) is added:

      The point-of-sale  system used at the Host Facility shall  differentiate
      sales  of the  Express  Restaurant  from  sales  of the rest of the Host
      Facility  by the use of "price look up" ("PLU") or other keys that track
      and tally sales of the Express  Restaurant  separately  and shall report
      Express Restaurant Gross Sales by item type.

(18)  Financial  Records Use and Access.  The second  sentence of Section 15.2
      is deleted.

(19)  Term.  Section 17.1 is deleted and replaced with the following:

      The  primary  term of this  Agreement  is for a period of five (5) years
      from the Effective Date, unless sooner terminated.

(20)  Renewal.   Section   17.2  is  amended  to  provide  that  the  term  of
      Franchisee's  option  to renew is five (5)  years.  All  other  terms of
      Section 17.2 remain the same.

(21)  Default and Termination.  The following new Section 18.2(o) is added:

            (o)   Loss of  Right  to  Operate  Host  Facility.  If  Franchisee
            loses the right for whatever reason to operate the Host Facility.

      2. Right to  Repurchase.  The  first  sentence  of 18.6 is  deleted  and
replaced with the following:

      Upon  termination  or  expiration  of this  Agreement  for  any  reason,
      Franchisor  shall have the  option to  purchase  the assets  used in the
      operation  of the  QUIZNO's  Express  Restaurant,  or a  portion  of the
      assets, which option,  however,  shall not include the right to purchase
      any fixtures or real property interest.

      Section 18.6(b) is deleted.

      3. Non-Competition  During  Term.  Section  20.1 is  amended  to provide
that the term  "Competitive  Business" shall mean any business  operating,  or
granting  franchises  or licenses to others to operate,  a restaurant or other
food  service  business  deriving  more  than ten  percent  (10%) of its gross
receipts,   excluding  gross  receipts  relating  to  the  sale  of  alcoholic
beverages,  from the sale of Sub-Sandwiches  (as defined above).  The offer or
sale of food products other than  Sub-Sandwiches or Branded Sandwiches through
or from the portion of the Host  Facility  that does not  comprise the Express
Restaurant shall not be considered a Competitive Business.

                                 Exhibit 2-6

      4. "Branded Business".  Section 20.2 is deleted.

      5. Post  Termination  Covenant  Not to Compete.  Section 20.3 is deleted
and replaced with the following:

      For a period of two (2) years from the effective  date of termination or
      expiration  of this  Agreement  for any  reason,  or the  date on  which
      Franchisee  and all  other  Bound  Parties  begin to  comply  with  this
      Section,  whichever is later,  neither  Franchisee nor its Bound Parties
      shall have any direct or indirect  interest as a disclosed or beneficial
      owner,  investor,  partner,  director,  officer,  employee,  consultant,
      representative,  agent, or in any other capacity in any Branded Sandwich
      franchise  or chain  located at the Host  Facility  or located  within a
      five (5) mile  radius  of the Host  Facility  or  within a five (5) mile
      radius of any other  QUIZNO'S  Restaurant  existing  on the later of the
      effective  date of  termination  or expiration of this  Agreement or the
      date on which  Franchisee  and all other Bound  Parties  begin to comply
      with  this  Section.  The  restrictions  of this  Section  shall  not be
      applicable to the  ownership of shares of a class of  securities  listed
      on a stock  exchange  or  traded  on the  over-the-counter  market  that
      represent  five  percent  (5%) or less of the  number  of shares of that
      class of securities  issued and  outstanding.  Franchisee  and the other
      Bound  Parties  expressly  acknowledge  that  they  possess  skills  and
      abilities  of  a  general  nature  and  have  other   opportunities  for
      exploiting  such  skills.  Consequently,  enforcement  of the  covenants
      made in this Section will not deprive  them of their  personal  goodwill
      or ability to earn a living.

      6. Additional  Remedies  for  a  Breach.  Section  20.4's  reference  to
Section 20.2 is deleted.

      7. Confidentiality  of Proprietary  Information.  The following is added
to the end of Section 20.5:

      Franchisee  shall  not  use the  Licensed  Methods,  including,  without
      limitation,   Franchisor's  recipes,  materials,  forms,  menus,  items,
      supplies,  business  forms,  or  business  policies,  as  stated  in the
      Operations  Manual or  otherwise,  except for the benefit of  Franchisor
      and in operation of the Franchisee's Express Restaurant.

      8. Security Interest.  Section 22 is deleted.

THE QUIZNO'S FRANCHISE COMPANY            FRANCHISEE

By:_____________________________          By:__________________________

     Its:_______________________               Its:____________________

                                 Exhibit 3-6

                                 EXHIBIT 3 TO
                             FRANCHISE AGREEMENT

                        ADDENDUM TO FRANCHISE AGREEMENT
                         SPECIAL PRODUCTS PROGRAM FOR
                         ____________________________
                              ("SPECIAL PRODUCT")

      THIS   ADDENDUM  to  the   Franchise   Agreement   ("Agreement")   dated
___________________  is  made  effective  as of  _____________________  by and
between    The    Quizno's     Franchise    Company     ("Franchisor")     and
____________________  ("Franchisee")  to amend  and  supplement  the terms and
conditions  contained in the  Agreement to allow  Franchisee to offer and sell
the Special  Product listed above at its QUIZNO's  restaurant  ("Restaurant"),
which is operated  pursuant to the Agreement (the "Special Product  Program").
Capitalized  terms not  defined  in this  Addendum  shall be as defined in the
Agreement.  The parties therefore agree as follows:

      1. Licensed Methods.  The "Licensed  Methods" shall be deemed to include
the Special  Product and all  products and  services  offered  pursuant to the
Special  Product  Program.   The  "Marks"  shall  be  deemed  to  include  all
trademarks  and  service  marks   designating  the  Special  Program  Products
("Special  Product  Trademarks").  Except as otherwise noted in this Addendum,
the terms of the Agreement,  including any and all exhibits and addenda to the
Agreement, shall apply to the Special Product Program.

      2. Marks.  Franchisee  acknowledges  that  Section 14  of the  Agreement
also  governs the Special  Product  Trademarks,  which during the term of this
Addendum  shall be considered  "Marks" under the  Agreement.  Franchisee  also
acknowledges  and agrees that no Marks other than Special  Product  Trademarks
or other  trademarks  specified by Franchisor  shall be used in the marketing,
promotion,  or identification of the Special Products and the operation of the
Special Product Program, except with Franchisor's prior written consent.

      3. Training Fee.  Franchisee  agrees to pay to Franchisor,  concurrently
with the  execution of this  Addendum,  a training fee of Six Hundred  Dollars
($600)  to  compensate  Franchisor  for its costs and  expenses  in  providing
initial training to Franchisee in connection with  Franchisee's  participation
in the Special Product  Program.  Franchisee  acknowledges and agrees that the
training  fee  represents  payment for the initial  grant of the rights to use
the Special Product  Trademarks and Licensed  Methods  relating to the Special
Product  Program.  Franchisor  has earned the training fee upon  receipt,  and
the training fee is not refundable to Franchisee after it is paid.

      4. Term.  Unless  terminated  early pursuant to Section 5, this Addendum
shall be  effective  on the date listed above and shall remain in effect until
termination  (for  any  reason)  or  expiration  of the  Agreement.  Upon  the
termination  or  expiration  of the term of this  Addendum  or any  extension,
Franchisee  must  cease  offering  the  Special  Products  at or  through  the
Franchised  Location in accordance  with the  post-termination  obligations of
Franchisee under the Agreement.

      5. Early  Termination.  This Addendum may be  terminated by  Franchisor,
with or without a termination  of the  Agreement:  (a) if Franchisee  breaches
any  provision of this  Addendum,  provided,  however,  state laws might apply
which will  supersede  this  provision;  or (b) if Franchisee is in default of
the  Agreement  and fails to cure such  default  pursuant  to the terms of the
Agreement;  or (c) if Franchisor  determines it to be in the best interests of
Franchisor  and its franchise  system to  discontinue  the sale of the Special
Products through the Restaurant,  in which case termination shall be effective
ninety (90) days after notice from  Franchisor.  Franchisee may terminate this
Addendum  only  if  Franchisor  has  committed  a  material  breach  of any of
Franchisor's  obligations  under  this  Addendum  and has  failed to cure such
breach pursuant to the terms of the Agreement.

      6. Conditional   Basis   of   Program.   Franchisee   acknowledges   and
understands:  (a)  that  the  Special  Product  Program  might  be an  initial
development  program to determine whether the Special Products can and will be
licensed for use and sale by other QUIZNO'S  Restaurants  and that  Franchisor
might still be in the development stage of creating and implementing  manuals,
programs,  and related  policies and  procedures,  if any,  with regard to the
sale of the Special Products at QUIZNO'S  Restaurants;  and (b) if the Special
Product  Program is in the nature of a test program,  it is being  established
and implemented to, among other things,  research and evaluate the feasibility
of offering  the Special  Products in other  Restaurants,  so that  Franchisee
shall  freely  share  with  Franchisor   operational   results,   information,
technology,  and ideas  regarding the sale of the Special  Products during the
term of this Addendum.

      7. Initial  Training  Program.  Franchisee  or, if  Franchisee is not an
individual,  its Managing  Owner and the  Designated  Manager shall attend and
successfully  complete the Special Product Program initial training offered by
Franchisor at one of Franchisor's  designated training facilities.  Franchisee
shall be responsible for all travel and living expenses  incurred in attending
the  initial  training  program as well as wages or  salaries,  if any, of the
persons  receiving the training.  Franchisee  (or its Managing  Owner) and the
Designated  Manager must  successfully  complete the Special  Product  Program
initial  training  program  before  Franchisee  begins  operating  the Special
Product  Program at its QUIZNO'S  Restaurant,  but Franchisee may designate up
to two (2) people to attend such training.

      8. Authorized   Special  Products.   For  the  term  of  this  Addendum,
Franchisee shall use best efforts to offer, promote,  market, and sell Special
Products as specified by the Special  Product  Program.  The Special  Products
shall be offered  for retail sale at the  Restaurant  in  accordance  with the
written  standards and  specifications  of  Franchisor,  many of which will be
contained in the Operations Manual or in technical  bulletins or other written
materials  specific  to the  Special  Product  Program,  all of  which  may be
changed or  supplemented  by Franchisor  in  accordance  with the terms of the
Agreement.  By execution  of this  Addendum,  Franchisor  approves the Special
Products as products  and  services  authorized  to be sold at and through the
Restaurant in accordance with the Agreement.

      9. Implementation  of the Special  Products  Program.  Franchisee  shall
commence the Special  Product  Program and begin offering and selling  Special
Products  on  the  same  day  that  Franchisee   commences  operation  of  its
Restaurant, or the date of this Addendum, whichever is later.

      10.   Royalty.  Any revenues  derived by Franchisee from the sale of the
Special  Products  shall be included in the Gross Sales of the  Restaurant for
purposes of determining the Royalty,  Local Advertising Fee, and Marketing and
Promotion Fee. The Gross Sales of the Restaurant  attributable  to the Special
Product  Program shall be accounted  for and reported to  Franchisor  separate
and apart from Gross Sales  attributable  to the remainder of the products and
services offered by and through the Restaurant.

      11.   Marketing and Advertising for Special Products.

            A. Franchisee  shall use only  designated  marketing  materials as
provided  to  Franchisee  by  Franchisor,  and  not  produce  any of  its  own
marketing  materials  unless given written  approval to do so, with respect to
marketing the Special Products or the Special Product Program.

            B. At no time will Franchisee  display or use in any manner any of
the Special  Product  Trademarks in the offer or sale of any other products or
services, including sandwiches,  offered at or through the QUIZNO'S Restaurant
without written permission of Franchisor.

            C. Franchisee  shall  implement  and  maintain  during the term of
this Addendum any  promotional  campaign for the sale of the Special  Products
and/or  the  Special  Product  Program in an amount and manner as set forth in
the Operations Manual or otherwise by written notice.

      12.   Competitive  Business.  Franchisee  acknowledges  that the Special
Product  Program is a "Competitive  Business" for purposes of the  restrictive
covenants set forth in the Agreement  unless  Franchisee is  participating  in
the Special  Product  Program in compliance with this Addendum and pursuant to
an effective Franchise Agreement.

      13.   Reports,  Books and  Records.  Franchisee  agrees to  prepare  and
submit certain weekly reports  regarding the sale of the Special Products in a
form designated by Franchisor.  Franchisee  agrees to provide  Franchisor with
full access to the results of its  operations in  connection  with the sale of
the Special Products and shall allow Franchisor's  designated  representatives
to inspect its  Franchised  Location and  operations to observe and assess the
sale of the  Special  Products  at any time  during  regular  business  hours.
Franchisor or its representative  shall be permitted to copy and retain copies
of all  relevant  invoices,  records,  customer  lists,  and  other  documents
related to the sale of the Special  Products.  Franchisee  shall  maintain and
submit to Franchisor  separate  accounting  records with regard to the income,
expenses,  and costs  which are  incurred in  connection  with the sale of the
Special Products.

      14.   Compliance   with  Laws.   Franchisee   shall   comply   with  any
applicable  federal,  state, and local laws, rules, and regulations and obtain
any and all permits,  certificates,  and licenses  which are required in order
to offer and sell the Special Products at and through the Franchised Location.

      15.   Landlord  Approval.  If  Franchisee  leases  the  premises  of its
Franchised Location,  Franchisee represents and warrants that operation of the
Special Product Program at the Franchised  Location does not violate the terms
and conditions of Franchisee's lease.

      16.   Ownership  of  Program.   Franchisor  and  Franchisee  agree  that
Franchisor shall have the right to offer  participation in the Special Product
Program  to  other  Restaurants  throughout  the  QUIZNO'S  Restaurant  system
without  compensation to Franchisee.  Franchisee  shall have no right,  title,
or interest  in or to any  proprietary  methods,  service  marks,  trademarks,
confidential  systems,  or information arising out of or developed through the
implementation   of   the   Special   Product   Program,    and   Franchisee's
implementation and use of the same shall inure to the benefit of Franchisor.

      17.   Trademarks;  Company  Authorization.  In  the  event  and  to  the
extent that any of the Special  Products  Trademarks are owned and licensed by
a company  other than TQC or  Franchisor,  Franchisee  shall  comply  with all
specifications  and standards  required by such third-party that are disclosed
to Franchisee by Franchisor.  The terms of all agreements  between  Franchisor
or TQC and the owners or  licensors  of Special  Product  Trademarks  shall be
deemed to be incorporated in this Addendum by this reference.

      18.   Post-Termination  Covenant  Not to  Compete.  In  addition  to the
post-termination  covenants not to compete  provided in the  Agreement,  for a
period of two (2) years from the effective  date of  termination or expiration
of the  Agreement  for any  reason,  or the date on which  Franchisee  and all
Bound Parties begin to comply with this Section,  whichever is later,  neither
Franchisee  nor any Bound Party shall have any direct or indirect  interest as
a  disclosed  or  beneficial  owner,  investor,  partner,  director,  officer,
employee, consultant,  representative,  agent, or in any other capacity in any
business  operating,  or granting franchises or licenses to others to operate,
a restaurant  or other food service  business  deriving  more than ten percent
(10%) of its gross  receipts from the sale of products  substantially  similar
to the Special  Product  designated in this Addendum and related food products
and  services  (which  shall be  considered a  Competitive  Business  both for
purposes of the  post-termination  covenant not to compete and Section 20.1 of
the  Agreement)  located  or  operating  within a five (5) mile  radius of the
former  Franchised  Location  or  within a five (5) mile  radius  of any other
QUIZNO'S   Restaurant   existing  on  the  later  of  the  effective  date  of
termination  or expiration of this  Agreement or the date on which  Franchisee
and all Bound Parties begin to comply with this Section.  The  restrictions of
this Section  shall not be applicable to the ownership of shares of a class of
securities  listed  on a stock  exchange  or  traded  on the  over-the-counter
market that  represent  five  percent  (5%) or less of the number of shares of
that class of  securities  issued and  outstanding.  Franchisee  and the Bound
Parties  expressly  acknowledge  that they possess  skills and  abilities of a
general  nature and have  other  opportunities  for  exploiting  such  skills.
Consequently,  enforcement  of the  covenants  made in this  Section  will not
deprive them of their personal goodwill or ability to earn a living.

      19.   Inconsistent   Terms.  To  the  extent  that  the  terms  of  this
Addendum  are  inconsistent  with the  Agreement,  the terms of this  Addendum
shall prevail in connection  with the  implementation  of the Special  Product
Program and the sale of the Special  Products and supersede  any  inconsistent
terms  in  the  Agreement.   Except  as  so  modified,  the  other  terms  and
conditions of the  Agreement  shall govern and remain in full force and effect
between Franchisor and Franchisee.

      IN  WITNESS  WHEREOF,   the  parties  have  executed  this  Addendum  to
Franchise Agreement to be effective as of the date first set forth above.

                                          THE QUIZNO'S FRANCHISE COMPANY

                                          By:_______________________________

                                               Its:_________________________

                                          FRANCHISEE

                                          By:_______________________________

                                               Its:_________________________

                                 Exhibit 4-2

                                  EXHIBIT 4
                            TO FRANCHISE AGREEMENT

               AUTHORIZATION AGREEMENT FOR PREARRANGED PAYMENTS
                                (DIRECT DEBITS)

The  undersigned  depositor  ("Depositor")  hereby (1) authorizes The Quizno's
Franchise  Company or its  affiliates  ("Company")  to initiate  debit entries
and/or credit correction entries to the undersigned's  checking and/or savings
account  indicated  below and (2) authorizes the depository  designated  below
("Depository") to debit such account pursuant to Company's instructions.

Depository                                     _______________________________
                                                         Branch

City                                                  State        Zip Code

                                               _______________________________
Bank Transit/ABA Number                                  Account Number

This  authority  is to remain in full force and effect  until  Depository  has
received  joint  written  notification  from  Company  and  Depositor  of  the
Depositor's  termination  of such authority in such time and in such manner as
to afford  Depository a reasonable  opportunity to act on it.  Notwithstanding
the  foregoing,  Depository  shall provide  Company and Depositor  with thirty
(30) days' prior written notice of the  termination of this  authority.  If an
erroneous  debit entry is initiated to Depositor's  account,  Depositor  shall
have the right to have the amount of such entry  credited  to such  account by
Depository,  if (a) within  fifteen (15) calendar  days  following the date on
which  Depository sent to Depositor a statement of account or a written notice
pertaining to such entry or (b) forty-five (45) days after posting,  whichever
occurs  first,  Depositor  shall  have sent to  Depository  a  written  notice
identifying  such entry,  stating that such entry was in error, and requesting
Depository to credit the amount  thereof to such account.  These rights are in
addition to any rights  Depositor  may have under  federal  and state  banking
laws.

                                          ___________________________________
DEPOSITOR (Print Name)                    DEPOSITORY (Print Name)

By:_____________________________          By:____________________________
     Its:_______________________               Its:______________________

                                 Exhibit 5-2

                                  EXHIBIT 5
                            TO FRANCHISE AGREEMENT

                            STATEMENT OF OWNERSHIP

Franchisee:______________________________________

Trade Name (if different from above):__________________________________________

_______________________________________________________________________________

                               Form of Ownership
                                  (Check One)

_____ Individual _____Partnership   _____ Corporation _____ Limited Liability Company

                                                      _____ Other (List):

      If a  Partnership,  provide  name and  address of each  partner  showing
percentage  owned,  whether  active in  management,  and indicate the state in
which the partnership was formed.

      If a Corporation,  Limited Liability Company,  or other business entity,
give the state and date of  incorporation  or organization and list the names
and  addresses of each officer,  director,  manager or owner and, with respect
to each owner, what percentage of stock or interest is owned by each.

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

      Provide   the  address   where   Franchisee's   financial   records  and
partnership,  corporate,  or company  records,  as applicable,  are maintained
(Restaurant  location will be deemed to be the address unless otherwise stated
below):
_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

      Franchisee  acknowledges that this Statement of Ownership applies to the
Restaurant authorized under the Franchise Agreement.

      Use  additional  sheets if  necessary.  Any and all changes to the above
information  must  be  reported  to  (and in some  cases  first  approved  by)
Franchisor in writing.

Date                                      __________________________________
                                          Name

                                 Exhibit 6-2

                                  EXHIBIT 6
                            TO FRANCHISE AGREEMENT

              GUARANTY AND ASSUMPTION OF FRANCHISEE'S OBLIGATIONS

      In  consideration  of, and as an  inducement  to, the  execution  of the
above Franchise  Agreement (the "Agreement") by The Quizno's Franchise Company
("Franchisor"), each of the undersigned hereby personally and unconditionally:

      (a)   Guarantees to Franchisor and its  successors and assigns,  for the
            term of this  Agreement,  including  renewals,  that Franchisee as
            that  term  is  defined  in  the  Agreement  ("Franchisee")  shall
            punctually pay and perform each and every undertaking,  agreement,
            and covenant set forth in the Agreement; and

      (b)   Agrees to be personally  bound by, and  personally  liable for the
            breach of, each and every  provision in the Agreement,  including,
            but not limited to, those specifically identified below.

Each of the undersigned waives the following:

      1.    Acceptance   and  notice  of   acceptance  by  Franchisor  of  the
            foregoing undertaking;

      2.    Notice   of   demand   for   payment   of  any   indebtedness   or
            nonperformance of any obligations hereby guaranteed;

      3.    Protest  and notice of  default  to any party with  respect to the
            indebtedness  or   nonperformance   of  any   obligations   hereby
            guaranteed; and

      4.    Any  right  he or she may  have to  require  that  any  action  be
            brought  against  Franchisee or any other person as a condition of
            liability.

Each of the undersigned consents and agrees that:

      1.    His or her  direct and  immediate  liability  under this  guaranty
            shall be joint and several;

      2.    He or she shall render any payment or  performance  required under
            the  Agreement   upon  demand  if  Franchisee   fails  or  refuses
            punctually to do so;

      3.    Such  liability  shall  not  be  contingent  or  conditioned  upon
            pursuit by  Franchisor of any remedies  against  Franchisee or any
            other person;

      4.    Such  liability  shall not be diminished,  relieved,  or otherwise
            affected by any  extension of time,  credit,  or other  indulgence
            which  Franchisor  may from time to time grant to Franchisee or to
            any other person,  including,  without limitation,  the acceptance
            of any  partial  payment  or  performance,  or the  compromise  or
            release of any  claims,  none of which  shall in any way modify or
            amend this  guaranty,  which shall be continuing  and  irrevocable
            during the term of the Agreement, including renewals thereof;

      5.    He  or  she   shall  be  bound  by  the   restrictive   covenants,
            confidentiality   provisions,   and   indemnification   provisions
            contained in the Agreement; and

      6.    The  provisions  contained  in  Section 21,   and  the  costs  and
            attorneys'  fees  provision  contained  in  Section 23.6,  of  the
            Agreement  shall govern this  Guaranty,  and such  provisions  are
            incorporated into this Guaranty by this reference.

      IN WITNESS  WHEREOF,  each of the  undersigned  has  affixed  his or her
signature effective on the same day and year as the Agreement was executed.

GUARANTOR(S)

                                          ______________________________
SIGNATURE                                 SIGNATURE

                                          ______________________________
NAME - TYPED OR PRINTED                   NAME - TYPED OR PRINTED

SIGNATURE

NAME - TYPED OR PRINTED

                                 Exhibit 7-3

                                 EXHIBIT 7 TO
                             FRANCHISE AGREEMENT

                                   ADDENDUM
                           TO FRANCHISE AGREEMENT -
                             BOOKKEEPING SERVICES
                        AND DIRECT DEBIT AUTHORIZATION

      THIS  ADDENDUM to the  Franchise  Agreement  by and between The Quizno's
Franchise Company ("Franchisor") and  _____________________  ("Franchisee") is
made as of the same date to  supplement  certain  terms and  conditions of the
Agreement.  In the event of any  conflict  between the terms of the  Agreement
and the terms of this  Addendum,  the terms of this  Addendum  shall  control.
All capitalized  terms not otherwise defined in this Addendum shall have their
respective  meanings set forth in the  Agreement.  Franchisor  and  Franchisee
agree as follows:

      1.    Bookkeeping  Services.  The following shall be added to supplement
Section 15 of the Agreement:

            A.    Services.  Franchisee  shall use Franchisor or  Franchisor's
      designated  vendor  to  provide  payroll  and  bookkeeping  services  to
      Franchisee,  and  Franchisee  agrees  to  comply  with all  requirements
      Franchisor  prescribes  with  regard  to  said  services.   Franchisor's
      bookkeeping service does not include cash management.

            Franchisor  and  Franchisor's  designated  vendor will provide the
            following  accounting  services on a period  basis for  franchised
            Restaurants:

            Period End              -     Balance Sheet
            Financial Statements:         -     Profit and Loss Statement

            Detailed General Ledger:      -     Unpaid Invoice Register
                                    -     Bank Reconciliation
                                    -     Check Register
                                    -     Printed  Period   Accounts   Payable
                                          Checks
                                    -     Prepare necessary sales tax reports
                                    -     Prepare necessary  personal property
                                          tax reports
                                    -     Prepare necessary use tax reports
                                    -     Payroll   Register,    Payroll   tax
                                          reports, and all necessary filings

            A  department  manager  will  personally  review  all  period  end
      financial    information   before   issuance.   A   complete   Franchise
      Bookkeeping   Department   Procedures   Manual   will  be   provided  to
      Franchisee.  This  manual  will  outline  in detail all  procedures  and
      checklists followed by Franchise Bookkeeping Department personnel.

            A complete Franchise Restaurant  Accounting Procedures Manual will
      be  provided  to  Franchisee.  This  manual  will  outline in detail all
      accounting    procedures   that   are   the    Restaurants'    managers'
      responsibility.

            B.    Submission of  Restaurant  Related  Items.  In order for the
      Franchise  Bookkeeping  Department to provide the most timely and useful
      information  to individual  Restaurants  or  companies,  it is essential
      that the accounting  department receive  information as soon as possible
      after the period closes.

            The  Franchise  Bookkeeping  Department  will  provide  the  above
      services to Franchisee  within ten (10) working days upon  receiving the
      last information for the period.

            Each week, in accordance with Franchisor's procedures,  Franchisee
      agrees  to  submit  to  Franchisor:   (a)  completed   Profit   Planners
      worksheets;  (b) Payroll  changes and  current  hours  worked;  (c) Bank
      statements;  (d) Manual check stubs with invoice copies; (e) Invoices to
      be paid;  and (f) Any other  documents  required to properly  record all
      transactions affecting the Restaurant's financial activity.

            C.    Fees For  Bookkeeping  Services.  In  consideration  for the
      services  Franchisor  provides to Franchisee  pursuant to this Addendum,
      Franchisee shall pay to Franchisor the sum of Eighty-Five  Dollars ($85)
      per  Restaurant  per week.  Franchisor may increase the fee after twelve
      (12)  months  following  the  date  Franchisee's   Restaurant  commences
      operations,  and thereafter  annually,  to an amount equal to the market
      rate for similar services as determined by Franchisor.

            D.    Termination.

                  (a)   By  Franchisor.  If  Franchisee  fails  to (i)  submit
      Restaurant  related  items when required  pursuant to this  Section,  or
      (ii) pay fees due to Franchisor  for these  services,  Franchisor  shall
      have the right to  terminate  the  Agreement as provided in Section 18.2
      of the  Agreement.  Franchisor  also shall  have the right to  terminate
      bookkeeping   services  upon  ninety  (90)  days'   written   notice  to
      Franchisee.

                  (b)    By  Franchisee.  At any time after twelve (12) months
      following  the  date  Franchisee's   Restaurant   commences   operation,
      Franchisee may terminate the  bookkeeping  services  service ninety (90)
      days  following  completion  of  the  following:  Franchisee  retains  a
      full-time  professional  accountant  (approved in writing by Franchisor)
      to provide  bookkeeping  services (at  Franchisee's  expense),  and that
      accountant  agrees in writing (on a form  acceptable to  Franchisor)  to
      provide  timely  financial  statements  required  by  Section  15 of the
      Agreement.  If  Franchisee  fails to provide such  financial  statements
      more than two (2) times in any twelve (12) month period,  in addition to
      any  other   remedies,   Franchisor   may  require   Franchisee  to  use
      Franchisor's bookkeeping services at the then-current fee.

      2.    Direct  Debits.  If  required  by  Franchisor,   Franchisee  shall
complete  such  documents to authorize  Franchisor  to initiate  debit entries
and/or credit correction  entries to Franchisee's  checking or savings account
for the payment of  Royalties,  Marketing  and  Promotion  Fees,  or any other
payment owed by Franchisee to Franchisor or its affiliates  under the terms of
the Agreement or otherwise.

      IN  WITNESS  WHEREOF,  the  parties  have  caused  this  Addendum  to be
executed on the date first set forth above.

-------------------------------------------------------------------------------

THE QUIZNO'S FRANCHISE COMPANY            FRANCHISEE

By: ____________________________          By:___________________________
     Its:_______________________               Its:_____________________
-------------------------------------------------------------------------------

                                 EXHIBIT 8 TO
      FRANCHISE AGREEMENT

                             ADDENDUM TO QUIZNO'S
              FRANCHISE AGREEMENT - MAXIMUM BORROWING COMMITMENT

      Franchisee  acknowledges and agrees that the maximum amount of debt that
the Franchised  Restaurant may service shall be the lesser of seventy  percent
(70%) of Franchisee's  initial investment in the Franchised  Restaurant or One
Hundred Forty  Thousand  Dollars  ($140,000).  Franchisee  shall not borrow in
excess  of this  maximum  allowed  debt  without  Franchisor's  prior  written
consent.  Franchisee  acknowledges  that excess debt will adversely affect the
Franchised Restaurant's operational results.

THE QUIZNO'S FRANCHISE COMPANY            FRANCHISEE

By:____________________________                 By:___________________________
     Its:______________________                      Its:_____________________

                        THE QUIZNO'S FRANCHISE COMPANY

                       AREA DIRECTOR MARKETING AGREEMENT

                                          TERRITORY__________________________

                                          DATE_______________________________

                                          AREA DIRECTOR______________________form10ksbfiling_9302000.htm

                        THE QUIZNO'S FRANCHISE COMPANY
                       AREA DIRECTOR MARKETING AGREEMENT

                               TABLE OF CONTENTS

Section Number                                                     Page Number

1.  BACKGROUND AND PURPOSE

2.  DEFINITIONS
  2.1.Territory
  2.2.Sales Year
  2.3.Sales Quarter
  2.4.Franchise Agreement
  2.5.Franchisee
  2.6.AD Manual
  2.7.Prime Lease and Premises
  2.8.Sublease
  2.9.Assignment

3.  SCOPE OF APPOINTMENT
  3.1.Appointment of Area Director/Scope of Operations
  3.2.Rights and Limitations to Territory
  3.3.Reservation of Rights to Franchisor

4.  FRANCHISE SALES PROCEDURES
  4.1.Development Quota
  4.2.Franchise Registration and Disclosure
  4.3.Advertising, Recruiting, and Screening
  4.4.Franchisor's Approval of Prospective Franchisees

5.  PAYMENTS TO FRANCHISOR
  5.1.Initial Area Marketing Fee
  5.2.Financing Administration Fee

6.  PAYMENTS TO AREA DIRECTOR
  6.1.Sales Services Commissions and Conditions of Payment
  6.2.Sales Services Commission Payments
  6.3.Site Services Commissions
  6.4.Commissions on Transfers of Franchises
  6.5.Commissions on Royalty Fees
  6.6.Commissions After Termination
  6.7.Application of Payments
  6.8.Setoffs

7.  TRAINING ASSISTANCE
  7.1.Area Director Training
  7.2.Length of Training
  7.3.Additional Training
  7.4.Seminars and Ongoing Training

8.  FRANCHISOR'S OPERATING ASSISTANCE
  8.1.AD Manual
  8.2.Operating Assistance

9.  AREA DIRECTOR'S OBLIGATIONS
  9.1.Hiring and Training of Employees of Area Director
  9.2.Commencement of Business
  9.3.Sales Services
  9.4.Site Services
  9.5.Pre-Opening and Opening Support Services
  9.6.Ongoing Support Services
  9.7.Dealings with Franchisees
  9.8.Area Director's Inspections
  9.9.Obligations Under Prime Leases and Subleases

10.  MARKS
  10.1.     Ownership and Goodwill of Marks
  10.2.     Limitations on Use
  10.3.     Discontinuance of Use of Marks
  10.4.     Notification of Infringements and Claims

11.  CONFIDENTIAL INFORMATION
  11.1.     Confidential Information
  11.2.     Nondisclosure and Noncompetition Agreement

12.  EXCLUSIVE RELATIONSHIP
  12.1.     Exclusive Relationship

13.  OPERATING STANDARDS
  13.1.     Standards of Service
  13.2.     Compliance with Laws and Good Business Practices
  13.3.     Accuracy of Information
  13.4.     Notification of Litigation
  13.5.     Ownership and Management of Business
  13.6.     Conflicting Interests
  13.7.     Insurance
  13.8.     Proof of Insurance Coverage
  13.9.     Advertising in Territory
  13.10.    Approval of Advertising
  13.11.    Accounting, Bookkeeping and Records
  13.12.    Reports

14.  INSPECTIONS AND AUDITS
  14.1.     Inspections and Audits

15.  TRANSFERS
  15.1.     Transfers by Franchisor
  15.2.     Transfers by Area Director
  15.3.     Conditions for Approval of Transfer
  15.4.     Transfer to an Entity
  15.5.     Franchisor's Approval of Transfer
  15.6.     Death or Disability of Area Director
  15.7.     Right of First Refusal
  15.8.     Transfers of Prime Lease or Sublease Interest

16.  TERM AND EXPIRATION
  16.1.     Term
  16.2.     Renewal
  16.3.     New Development Quota
  16.4.     Exercise of Renewal Option
  16.5.     Conditions of Refusal

17.  TERMINATION
  17.1.     By Area Director
  17.2.     By Franchisor
  17.3.     Rights and Obligations of Area Director Upon Termination or
             Expiration
  17.4.     Confidential Information
  17.5.     Covenant Not to Compete
  17.6.     No Further Right to Payment
  17.7.     Continuing Obligations
  17.8.     State and Federal Law

18.  RELATIONSHIP OF THE PARTIES
  18.1.     Relationship of the Parties
  18.2.     Payment of Third Party Obligations
  18.3.     Independent Contractors
  18.4.     Indemnification

19. DISPUTES
  19.1.     Governing Law/Consent to Venue and Jurisdiction
  19.2.     Waiver of Jury Trial
  19.3.     Limitation of Claims

20.  MISCELLANEOUS PROVISIONS
  20.1.     Invalidity
  20.2.     Modification
  20.3.     Attorneys' Fees
  20.4.     Injunctive Relief
  20.5.     No Waiver
  20.6.     No Right to Set Off
  20.7.     Effective Date
  20.8.     Review of Agreement
  20.9.     Entire Agreement
  20.10.    Notices
  20.11.    Acknowledgment

EXHIBITS

      Exhibit I -    Rider to Area Director Marketing Agreement
      Exhibit II -   Guaranty and Assumption of Area Director's Obligations
      Exhibit III -  Statement of Ownership

                        THE QUIZNO'S FRANCHISE COMPANY
                       AREA DIRECTOR MARKETING AGREEMENT

AREA DIRECTOR:.____________________________

ADDRESS:___________________________________

EFFECTIVE
DATE:

      THIS  AGREEMENT  (the  "Agreement")  is between THE  QUIZNO'S  FRANCHISE
COMPANY,  a Colorado  corporation  located  at 1415  Larimer  Street,  Denver,
Colorado  80202  ("Franchisor"),  and the  Area  Director  listed above ("Area
Director" or "AD"), who agree as follows:

10  BACKGROUND AND PURPOSE

      1.1.  Franchisor   and  its  affiliates   have  developed   methods  for
establishing,  operating,  and promoting casual dining  restaurants  featuring
submarine and deli sandwiches,  salads,  other food products,  beverages,  and
carry-out and delivery  services  ("QUIZNO'S  Restaurants" or  "Restaurants").
These methods  feature the use and license of the service mark  "QUIZNO'S" and
related service marks and trademarks (collectively,  the "Marks") owned by The
Quizno's  Corporation  ("TQC"),  Franchisor's  parent company and the owner of
the  Marks,  and  Franchisor's  and  its  affiliates'  distinctive  plans  for
establishing,  operating,  and  promoting  QUIZNO'S  Restaurants  and  related
licensed methods of doing business (the "Licensed Methods").

      1.2.  Franchisor  grants to qualified  individuals,  or to entities with
which such  individuals are  affiliated,  the right and license to develop and
operate Restaurants using the Marks and Licensed Methods.

      1.3.  AD  desires  to act as a  special  agent for  Franchisor  within a
certain geographic area,  enabling AD to offer franchises for, and to develop,
support,   and  provide   services  to,  QUIZNO'S   Restaurants   within  such
geographical  area under the terms and conditions  contained in this Agreement
("AD Business" or "Business").

      1.4.  Franchisor  is  willing  to grant AD the right to serve as an area
director,  enabling AD to offer  franchises for, and to provide site selection
and support services to, QUIZNO'S  Restaurants  within a certain  geographical
area under terms and conditions contained in this Agreement.

                                2 DEFINITIONS

      2.1.  Territory.  "Territory" is the geographical  area described in the
attached Exhibit I.

      2.2.  Sales  Year.  "Sales  Year"  means each  calendar  year during the
term of this Agreement.

      2.3.  Sales  Quarter.   "Sales  Quarter"  means  each  calendar  quarter
during the term of this Agreement.

      2.4.  Franchise  Agreement.  "Franchise  Agreement"  means  the forms of
agreements  (including,  without  limitation,   franchise  agreement  and  any
exhibits,  riders,  collateral  assignments of lease or sublease, and personal
guarantees)  used by Franchisor  from time to time in granting  franchises for
the ownership and operation of QUIZNO'S  Restaurants.  AD acknowledges that AD
will  use  Franchisor's  then-current  form of  franchise  agreement  and that
Franchisor  may from time to time  modify or amend in any  respect the form of
franchise  agreement and related  agreements,  including,  without limitation,
modifying fees, customarily used in granting QUIZNO's Restaurant franchises.

      2.5.  Franchisee.    "Franchisee"   means   any   person,   corporation,
partnership,  or other entity who has entered into a Franchise  Agreement with
Franchisor.

      2.6.  AD Manual.  "AD Manual"  means the manuals,  technical  bulletins,
or other  written  materials  covering  the  proper  operating  and  marketing
techniques   of  an  AD  Business  and  standards   and   specifications   for
implementing the Licensed Methods.

      2.7.  Prime  Lease and  Premises.  "Prime  Lease"  shall mean a lease of
commercial space  ("Premises")  entered into by the Area Director,  as tenant,
for Premises located within the Territory.

      2.8.  Sublease.  "Sublease"  shall mean a lease entered into between the
Area Director,  as landlord,  and a Franchisee,  as tenant, or any other third
party as tenant,  for all or any portion of the Premises  leased pursuant to a
Prime Lease.

      2.9.  Assignment.   "Assignment"  shall  mean  an  assignment  or  other
transfer to a Franchisee of all of the Area Director's  right and title to and
interest in a Prime Lease.

                            3 SCOPE OF APPOINTMENT

      3.1.  Appointment  of  Area  Director/Scope  of  Operations.  Franchisor
appoints AD, and AD agrees to perform its  obligations,  as a special agent of
Franchisor in accordance with the terms and conditions of this Agreement,  and
only  within  the  Territory,  to: (1)  solicit  prospective  Franchisees  for
QUIZNO'S  Restaurants  to be located in the  Territory  ("Sales  Services") as
described  in  Section  9.3;  (2)  perform   certain  site   acquisition   and
development  services  described  in Section  9.4 ("Site  Services");  and (3)
render support and other services ("Support  Services") to Restaurants located
within the  Territory as described  in Section  9.5.  Franchisor  may grant AD
the  nonexclusive  right,  but not the  obligation,  to serve as  landlord  to
Franchisees  in the  Territory.  In the event that AD requests  such right and
Franchisor  consents,  this Agreement shall govern the terms and conditions of
such grant.

      3.2.  Rights and  Limitations  to  Territory.  During  this  Agreement's
term,  Franchisor and its affiliates  will not establish and license any other
area  directors  to act as special  agents to  perform  Sales  Services  or to
render Site Services or Support Services to Franchisees  within the Territory;
provided,  however,  that  Franchisor  and its  affiliates  shall  retain such
rights in the Territory as described in Section 3.3.

      3.3.  Reservation  of Rights to  Franchisor.  AD  acknowledges  that the
rights granted by this  Agreement are  nonexclusive,  and Franchisor  (and its
affiliates  and  designees)   retains  the  right  (without   compensation  or
obligation whatsoever to AD unless specifically set forth):

            (a)   to contract  with  "Segment  Specialists"  to allow  Segment
Specialists to perform Site Services in the Territory,  in which case AD shall
not be required  to perform  and,  to the extent not  performed,  shall not be
compensated  for any Site  Services,  as set forth in  Section  6. A  "Segment
Specialist" means a person with whom Franchisor  contracts to perform all or a
portion  of the  Site  Services  for  particular  QUIZNO'S  Restaurants  to be
located at sites within the Territory,  such as malls or nontraditional  sites
such as airports,  universities,  medical  facilities,  and the like.  Segment
Specialists,  such as mall  consultants and others with special  experience in
locating and negotiating  access to sites,  may be used in order to facilitate
the site  selection  process in  specialized  segments  that are  difficult to
obtain by area directors.  Franchisor  reserves the right to determine when to
use a Segment Specialist;

            (b)   to  use,  and to  license  others  to  use,  the  Marks  and
Licensed  Methods for the  operation  of other AD  Businesses  at any location
outside  of  the  Territory  and  for  the  operation  of  Segment  Specialist
businesses, wherever located;

            (c)   to  solicit  prospective  Franchisees,  and to  grant  other
persons franchises to operate QUIZNO'S  Restaurants,  at such locations within
and outside of the  Territory  and on such terms and  conditions as Franchisor
deems  appropriate,  to own and  operate  for its own  benefit  such  QUIZNO'S
Restaurants  within the Territory  (subject to its obligation to compensate AD
for Royalty Fees,  as set forth in Section 6.5),  and to provide Site Services
for  franchised  QUIZNO's  Restaurants  within  the  Territory  (but  with  no
obligation  to  pay  AD  any  Sales  Services  Commissions  or  Site  Services
Commissions,  respectively, in connection with Franchisees whom Franchisor has
solicited or for whom Franchisor,  without the assistance of AD, has performed
Sales Services or Site Services);

            (d)   to use and license the use of alternative  proprietary marks
or  methods  in  connection  with  the  operation  of  restaurants   featuring
submarine  sandwiches,  salads, other food products,  and related services, at
any  location  and within  any  territory  (including  the  Territory),  which
businesses  may be the same as, or  similar  to, or  different  from  QUIZNO'S
Restaurants or may be in alternative channels of distribution; and

            (e)   to use the Marks and  Licensed  Methods in  connection  with
some  or  all  of  the  same   products  and  services   offered  by  QUIZNO'S
Restaurants,  other services and products,  promotional and marketing  efforts
or related items, or in alternative channels of distribution,  including,  but
not limited to, the  services  performed by Segment  Specialists  as described
above, at any location and within any territory (including the Territory).

                         4 FRANCHISE SALES PROCEDURES

      4.1.  Development  Quota.  AD  agrees  to  comply  with the  development
quota set forth in  Exhibit I to this  Agreement  ("Development  Quota")  with
respect  to each Sales  Quarter.  The  determination  as to whether AD has met
its  development  obligations  under this Agreement shall be made based on the
number of Restaurants  open and operating at the end of a Sales  Quarter.  For
purposes  of these  development  obligations,  a  Restaurant  must be open and
operating in compliance  with the applicable  Franchise  Agreement in order to
be counted toward the  satisfaction of the  Development  Quota. AD agrees that
during the term of this Agreement,  it will at all times faithfully,  honestly
and diligently  perform its obligations  hereunder and will continuously exert
its best  efforts to promote and  enhance the  development  and  operation  of
QUIZNO'S Restaurants within the Territory.

      4.2.  Franchise   Registration  and  Disclosure.   Neither  AD  nor  any
employee or  representative  of AD shall solicit  prospective  Franchisees  of
QUIZNO'S  Restaurants  until  Franchisor has  registered  its current  Uniform
Franchise  Offering  Circular  ("UFOC") in  applicable  jurisdictions  and has
provided  AD with  the  requisite  documents  or at any time  when  Franchisor
notifies AD that its  registration  is not then in effect or its documents are
not then in compliance with  applicable  law. If AD's  activities  pursuant to
this Agreement require the preparation,  amendment, registration, or filing of
information  or any  disclosure or other  documents,  all  requisite  offering
circulars,   ancillary  documents,  and  registration  applications  shall  be
prepared and filed by Franchisor or its designee,  and  registration  secured,
before AD may solicit prospective  Franchisees of QUIZNO'S Restaurants.  Costs
of such  registration  applicable  to AD shall be borne by AD. In  particular,
AD shall:

            (a)   prepare  and  forward  to  Franchisor   verified   financial
statements  of AD in such form and for such periods as shall be  designated by
Franchisor,   including  audited  financial   statements,   if  necessary  and
appropriate  to comply with  applicable  legal  disclosure,  filing,  or other
legal requirements;

            (b)   promptly  provide  all  information  reasonably  required by
Franchisor  to  prepare  all  requisite   offering   circulars  and  ancillary
documents for the offering of franchises throughout the Territory;

            (c)   execute  all  documents   required  by  Franchisor  for  the
purpose of registering AD and  Franchisor to offer  franchises  throughout the
Territory; and

            (d)   pay to Franchisor,  or its designee,  upon demand, the costs
of  registering  and  preparing  those  portions  of  offering  circulars  and
ancillary documents which are applicable to AD.

AD agrees to review all  information  pertaining to AD prepared to comply with
legal  requirements  for selling  franchises  in the  Territory and verify its
accuracy if so requested by Franchisor.  AD  acknowledges  that Franchisor and
its  affiliates  and  designees  shall  not be  liable  to AD for any  errors,
omissions, or delays which occur in the preparation of such materials.

      4.3.  Advertising,  Recruiting,  and Screening.  AD shall be responsible
for advertising for,  recruiting,  screening,  and interviewing  prospects for
QUIZNO'S  Restaurant  franchises  within  the  Territory.   AD  shall  provide
prospective   Franchisees  with  written  information   regarding  a  QUIZNO'S
Restaurant  franchise  approved  by  Franchisor  or  communicate   information
regarding  QUIZNO'S  Restaurant  franchises  via the  telephone,  face-to-face
meetings,  or visits at other QUIZNO'S  Restaurants  within the Territory.  AD
shall submit each qualified applicant  ("Applicant") for a QUIZNO'S Restaurant
franchise to Franchisor  for approval.  AD further  agrees that all Applicants
submitted to Franchisor by AD, if an individual,  or the Managing Owner of the
Applicant,  if the Applicant is not an individual,  shall be  individuals  who
are  of  good  character,   have  adequate  financial   resources,   and  meet
Franchisor's  criteria for  Franchisees or Managing  Owners of Franchisees (as
Managing  Owner is defined in Section 7.1 of the  Franchise  Agreement).  Each
application  for a franchise  received by AD shall be submitted to  Franchisor
with all  information  respecting  the  Applicant,  the Managing  Owner of the
Applicant,  if applicable,  the Applicant's  proposed franchise  location,  if
known,  and all other  information  then  customarily  required by  Franchisor
concerning   Applicants,   including  such  financial   statements  and  other
information  as  Franchisor  may  reasonably  require.  AD  shall  assist  the
Applicant in preparing such financial reports and other information.

      4.4.  Franchisor's Approval of Prospective  Franchisees.  By delivery of
written  notice to AD,  Franchisor  shall approve or disapprove  Applicants to
become QUIZNO'S  Restaurant  Franchisees.  Franchisor agrees to exert its best
efforts to deliver  such  notification  to AD within  ten (10)  business  days
after the later of: (a)  receipt  by  Franchisor  of a  complete  application,
financial statement,  and other materials regarding the Applicant requested by
Franchisor;  or (b) the personal  interview of  Applicant  by  Franchisor,  if
any.  Franchisor shall determine  whether the Applicant  possesses  sufficient
financial  and  managerial  capability  and  meets  the  other  criteria  then
utilized by Franchisor in the grant of  franchises.  Franchisor  may refuse to
grant  a  franchise  to an  Applicant  if it so  chooses.  The  grant  of  the
franchise  shall be  effected  only upon and after the full  execution  of the
then-current Franchise Agreement by Franchisor and the Applicant.

                           5 PAYMENTS TO FRANCHISOR

      5.1.  Initial  Area  Marketing  Fee.  The  initial  area  marketing  fee
("Initial  Fee")  payable  to  Franchisor  by AD  in  consideration  for  AD's
appointment  as AD within the Territory  shall be calculated  and set forth in
the attached  Exhibit I.  Unless otherwise agreed,  the Initial Fee is payable
in full upon execution of this  Agreement.  The Initial Fee is fully earned by
Franchisor upon receipt and is  nonrefundable  once paid,  provided,  however,
that if this  Agreement  is  terminated  under  Section  17.2(a),  AD shall be
entitled to a refund of the Initial Fee, less reasonable  expenses incurred by
Franchisor  in  connection  with  AD's  training.  AD  acknowledges  that  the
Initial  Fee  does not  include  payment  of any  initial  franchise  fees for
individual QUIZNO'S Restaurants.

      5.2.  Financing  Administration  Fee. If AD finances  any portion of the
Initial Fee with Franchisor,  AD shall pay an additional administration fee of
one  thousand   dollars   ($1,000)  to  Franchisor   upon  execution  of  this
Agreement.

                         6 PAYMENTS TO AREA DIRECTOR

      6.1.  Sales Services  Commissions and Conditions of Payment.  During the
term of this  Agreement,  AD shall be paid a commission,  as set forth in this
Section,  based on a percentage of initial  franchise fees paid by Franchisees
for the purchase of QUIZNO'S  Restaurant  franchises to be located  within the
Territory  ("Sales  Services  Commission"),  subject  to  fulfillment  of  the
following conditions ("Franchise Sales Conditions"):

            (a)   Franchisee  executes a Franchise  Agreement with Franchisor,
and an  initial  franchise  fee has  been  paid to and  actually  received  by
Franchisor  (Franchisor  shall not be deemed  to have  received  any fees paid
into escrow,  if  applicable,  until such fees  actually have been remitted to
Franchisor);

            (b)   The sale for which the initial  franchise  fee has been paid
is not a resale of any existing QUIZNO'S  Restaurant or any interest in such a
Restaurant; and

            (c)   AD has  complied  with all of its  other  obligations  under
this  Agreement  with  respect  to such  sale  and has  verified  the  same to
Franchisor in writing in a form prescribed by Franchisor,  provided,  however,
that AD shall not be entitled to any Sales  Services  Commission  with respect
to franchised QUIZNO'S Restaurants  established in the Territory in connection
with which AD performed no Sales Services.

      6.2.  Sales Services  Commission  Payments.  Sales Services  Commissions
shall be an amount equal to  twenty-five  percent  (25%) of the total  initial
franchise  fees paid to  Franchisor  and will be payable  to AD within  twenty
(20) days after the Franchise Sales  Conditions have been fulfilled.  AD shall
not receive any Sales Services  Commissions for QUIZNO'S Restaurants owned and
operated  by  Franchisor  or  its  affiliates  or  designees  ("Company  Owned
Restaurants") in the Territory, if any, or as provided in Section 6.1.

      6.3.  Site  Services  Commissions.  During  the term of this  Agreement,
AD shall be paid a commission in an amount equal to twenty-five  percent (25%)
of the  total  initial  franchise  fees  paid to  Franchisor  ("Site  Services
Commission"),  payable within twenty (20) days after a  Franchisee's  QUIZNO'S
Restaurant  opens,  upon AD's  completion  of the Site  Services  described in
Section  9.4.  AD shall not  receive  Site  Services  Commissions  for Company
Owned  Restaurants  located  in  the  Territory,  or for  franchised  QUIZNO'S
Restaurants  within  the  Territory  for  which  Franchisor,  and not AD,  has
performed such Site Services,  but all of these Restaurants shall count toward
fulfillment of the Development Quota.

      Franchisor   shall  have  the  exclusive   right  to  employ  a  Segment
Specialist to provide Site Services in the Territory,  and the fees payable to
the Segment Specialist  ("Segment Specialist Fee"), if any, for performing the
Site  Services in the  Territory  shall be paid by  Franchisor.  If Franchisor
employs a Segment Specialist in the Territory,  it will deduct one-half (1⁄2) of
the Segment  Specialist  Fee from the full Site Services  Commissions  that AD
would have  received  had AD  performed  the Site  Services  performed  by the
Segment  Specialist  and then pay AD the balance,  assuming AD  performed  the
Site  Services  not  performed  by the  Segment  Specialist.  However,  if the
portion  of the  Segment  Specialist  Fee  deducted  from  the  Site  Services
Commission  equals or exceeds the Site  Services  Commission,  AD shall not be
entitled to any payment whatsoever for Site Services.

      6.4.  Commissions  on Transfers of  Franchises.  If,  during the term of
this  Agreement,  a QUIZNO'S  Restaurant  located  within the  Territory or an
interest in the  Restaurant is resold to a different  Franchisee  and the sale
results  in the  execution  of a  Franchise  Agreement  and the  payment  of a
transfer  fee,  then AD  will be paid a  commission  in the  amount  of  fifty
percent  (50%) of the transfer fee paid and actually  received by  Franchisor,
payable  within  twenty  (20)  days  after  the  completion  of the  transfer,
provided  that  Franchisor  shall not be deemed to have received any fees paid
into escrow,  if  applicable,  until such fees  actually have been remitted to
Franchisor.

      6.5.  Commissions  on Royalty Fees.  Franchisor  shall pay to AD, within
twenty  (20)  days  after  the end of each  four (4) or five  (5) week  period
determined  by  Franchisor,  forty  percent  (40%) of the royalty  fees (which
excludes   advertising  fees  and  any  fees  generated  from  the  activities
described  in  Section  3.3)  actually   received  by  Franchisor   from  each
Franchisee  located in the Territory during the applicable  period pursuant to
their Franchise Agreement ("Royalty Fees").  Notwithstanding the foregoing:

            (a)   If  AD  has  failed  to  conduct  the  periodic  inspections
described in Section 9.5 and to file a written  report or failed to perform in
any material respect,  with respect to one (1) or more Franchisees  located in
the  Territory,  the other  services  described in Section 9 to be provided to
Franchisees  located in the Territory  during any applicable  month,  AD shall
not be entitled to receive  commissions  on Royalty  Fees with respect to such
Franchisees  for  the  period  during  which  reports  or  services  were  not
provided.

            (b)   AD  shall  not  be  entitled  to  share  in or  receive  any
commissions  on  Royalty  Fees  paid  to  Franchisor  by  Franchisees  in  the
Territory  prior to the time AD completes the initial AD training  program and
commences full performance of the services set forth in Section 9.

            (c)   AD  shall  not  be  entitled  to  share  in or  receive  any
commissions on Royalty Fees paid to Franchisor by  Franchisees  (or that would
otherwise be payable by any Company Owned  Restaurant)  from any Restaurant in
the Territory  that (i) was opened,  or operated  under a Franchise  Agreement
entered  into,  prior  to the  Effective  Date of  this  Agreement;  (ii)  was
constructed by Franchisor  and then sold or transferred to a Franchisee  under
Franchisor's  "Turnkey" program;  (iii) was a non-QUIZNO'S  operation acquired
by  Franchisor  or its  affiliates  and  thereafter  converted  to a  QUIZNO'S
Restaurant;   or  (iv)  is  operated  in  an  airport   (collectively  "Exempt
Restaurants");  provided that AD will be paid two hundred  dollars  ($200) per
month for any Exempt  Restaurant  located in the  Territory  in  exchange  for
performance  of the  services  set  forth in  Section 9 with  respect  to such
Exempt  Restaurant,  and AD  shall  perform  those  services  at  Franchisor's
request.

            (d)   To compensate AD for providing Support  Services,  except as
set forth in Section 6.5(c),  AD shall receive payments equal to forty percent
(40%) of the Royalty Fees which would  otherwise be payable to Franchisor from
any Company Owned Restaurants in the Territory.

      6.6.  Commissions After  Termination.  All payments under this Section 6
shall  immediately and  permanently  cease after the expiration or termination
of this  Agreement,  although AD shall  receive all amounts which have accrued
to AD as of the effective date of expiration or termination.

      6.7.  Application  of  Payments.  Franchisor's  payments  to AD shall be
based  on  amounts  actually  collected  from  Franchisees,  not  on  payments
accrued,  due, or owing. In the event of termination of a Franchise  Agreement
for a QUIZNO'S Restaurant within the Territory under  circumstances  entitling
Franchisee  to the  return  of all or part  of the  initial  franchise  fee or
Royalty Fees (or in the event that  Franchisor  becomes  legally  obligated or
decides to return part or all of the initial  franchise fee or Royalty  Fees),
Franchisor  may deduct the portion of the amount to be returned to  Franchisee
in the same  proportion  as AD shared in the initial  franchise fee or Royalty
Fees from any future  amounts  owed AD.  Franchisor  shall apply any  payments
received from a Franchisee  to any past due  indebtedness  of that  Franchisee
for Royalty Fees, advertising contributions,  purchases from Franchisor or its
affiliates,  interest,  or  any  other  indebtedness  of  that  Franchisee  to
Franchisor  or its  affiliates.  To the extent that such  payments are applied
to a Franchisee's  overdue  Royalty Fee payments,  AD shall be entitled to its
pro rata  share of such  payments,  less  its pro rata  share of the  costs of
collection paid to third parties.

      6.8.  Setoffs.  AD  shall  not be  allowed  to set off  amounts  owed to
Franchisor  for fees or other  amounts  due under this  Agreement  against any
monies owed to AD by  Franchisor,  which right of set off is hereby  expressly
waived by AD.  Franchisor  shall be allowed to set off against amounts owed to
AD for  commissions,  Royalty Fees, or other amounts due under this  Agreement
any monies owed to Franchisor by AD, including  setting off amounts owed to AD
against  monies owed to Franchisor  for  commissions  on Sales  Services which
were  paid  to  AD  before   Franchisee   failed  to   successfully   complete
Franchisor's initial training program.

                            7 TRAINING ASSISTANCE

      7.1.  Area Director  Training.  Within sixty (60) days after the date of
execution of this Agreement,  Franchisor shall furnish, and AD (or, if AD is a
partnership,  corporation, or other entity, an individual designated by AD who
owns at least  twenty-five  percent (25%) of the ownership  interest in AD and
who has been approved by Franchisor,  who shall be designated as the "Managing
Owner")  shall  attend,  at AD's sole cost and  expense,  an initial  training
program   consisting  of  the  training  program  applicable  to  Franchisor's
Franchisees and such further  training as Franchisor  deems  advisable,  which
may  include  topics  such  as  marketing,   franchise  sales,  franchise  law
compliance,  site  selection,  and  restaurant  operations,  furnished at such
place and time as Franchisor designates.

      7.2.  Length of  Training.  Franchisor  shall  determine the appropriate
length of the portion of the initial AD training  program  applicable  only to
Area  Directors,  which will be in  addition to the second part of the initial
AD training program  applicable to Area Directors and Franchisees.  Other than
the  Initial  Fee,  no  tuition  or fee  shall  be  charged  for  the  initial
training.  However,  AD  shall  be  responsible  for  all  travel  and  living
expenses  incurred in connection  with attendance at both parts of the initial
training program.

      AD (or its Managing  Owner) may request  additional  training during the
initial training  program,  to be provided at no additional  charge, if AD (or
its Managing  Owner) does not feel  completely  trained in the operation of an
area  directorship   business.   However,   if  AD  (or  its  Managing  Owner)
satisfactorily  completes  Franchisor's initial training program, and does not
inform  Franchisor in writing at the end of the initial  training program that
AD (or its Managing Owner) does not feel completely  trained,  then AD will be
deemed to have been  trained  sufficiently  to operate  the area  directorship
business.

      7.3.  Additional  Training.   The initial  training program will be made
available to replacement or additional  Managing  Owners and other  management
personnel  during the term of this  Agreement.  Franchisor  reserves the right
to  charge  a  tuition  or fee  in  advance  of  such  training.  AD  will  be
responsible  for all travel and living  expenses  incurred by its personnel in
connection   with   attendance   at  the  training   program.   Further,   the
availability of the training programs will be subject to space  considerations
and prior commitments to new QUIZNO'S Franchisees and ADs.

      7.4.  Seminars and Ongoing  Training.  From time to time, Franchisor may
present  seminars,  conventions,  or continuing  development  programs for the
benefit  of AD. AD or its  Managing  Owner  shall be  required  to attend  any
ongoing  mandatory  seminars,  industry  conventions,  or programs  offered by
Franchisor.  If AD  fails  to  attend  a  mandatory  seminar,  convention,  or
program without  obtaining  Franchisor's  prior written  approval and fails to
arrange for  attendance at an alternate  time, AD shall be required to make up
the missed  program at a time and place  designated by Franchisor  and will be
charged one thousand five hundred  dollars  ($1,500) for each program  missed.
Franchisor  shall give AD at least thirty (30) days' prior  written  notice of
any  seminar,  convention,  or program  that is deemed  mandatory.  Franchisor
will not require that AD attend any ongoing  training more often than five (5)
times per  calendar  year.  AD will be  responsible  for all travel and living
expenses associated with attendance at any ongoing training programs.

                     8  FRANCHISOR'S OPERATING ASSISTANCE

      8.1.  AD  Manual.  Franchisor  shall,  in  addition  to the AD  training
program,  loan to AD during the term of this  Agreement one (1) copy of its AD
Manual to assist AD and its employees in conducting the business  contemplated
by  this   Agreement.   Franchisor  may  prescribe   mandatory  and  suggested
standards  and  operating  procedures  for AD in the AD  Manual,  which may be
modified  from time to time by  Franchisor.  AD shall  keep its copy of the AD
Manual  current.  In the  event  of a  dispute  relating  to  the  AD  Manual,
Franchisor's  master  copy  controls.  AD may not at any time copy any part of
the AD Manual  unless  approved  in writing by  Franchisor.  In the event AD's
copy of the AD Manual is lost,  destroyed,  or damaged,  AD shall be obligated
to  obtain  from  Franchisor,   at  Franchisor's  then  applicable  charge,  a
replacement  copy  of  the  AD  Manual.  The  AD  Manual  and  other  writings
communicated to AD shall constitute  material  provisions of this Agreement as
if fully set forth within its text.

      8.2.  Operating   Assistance.   Franchisor   will  make   available  the
following services during the term of this Agreement:

            (a)   Upon the reasonable  request of AD,  telephone  consultation
regarding  advice  related  to  franchise  sales,   Franchisee  support,   and
assistance; and

            (b)   Access  to  franchise  sales   advertising  and  promotional
materials developed by Franchisor,  the reasonable cost of which may be passed
on to AD at Franchisor's option.

                        9  AREA DIRECTOR'S OBLIGATIONS

      9.1.  Hiring and Training of Employees of Area  Director.  AD shall hire
all of AD's  employees,  shall be  exclusively  responsible  for the  terms of
their employment and compensation,  and shall implement a training program for
employees to ensure their compliance with Franchisor's requirements;  provided
that AD shall not employ any person who  Franchisor has determined is unfit to
represent   Franchisor  in  marketing   QUIZNO'S   Restaurant   franchises  or
furnishing services to Franchisees.

      9.2.  Commencement of  Business.  Unless  otherwise agreed to in writing
by Franchisor  and AD, AD has sixty (60) days from the date of this  Agreement
within which to complete  the first part of its initial  training and commence
operation  of its  QUIZNO'S  AD  Business.  Franchisor  will  extend  the time
within which AD must commence  operations for a reasonable  period of time, in
the event that factors beyond AD's reasonable  control prevent AD from meeting
this schedule,  so long as AD has made  reasonable  and continuing  efforts to
comply and AD  requests in writing an  extension  of time in which to have its
Business  established  before  the  period  lapses.  The  obligations  of  AD,
including Sales Services,  shall commence at the earlier of the date AD or its
Managing  Owner has  satisfactorily  completed the first part of  Franchisor's
initial  training  program or sixty (60) days from the date of this Agreement.
AD will  also,  at AD's  expense,  purchase  or  otherwise  obtain  for use in
connection  with the Business (a) computer  hardware and software  that comply
with the standards and  specifications  of Franchisor;  (b) an office serviced
by a  minimum  of one  dedicated  telephone  line  with  24-hour  professional
answering  service  or  voice  mail;  (c) a  facsimile  machine  with  its own
dedicated  telephone  line;  (d) business  cards and  stationery;  and (e) any
other items  required by the AD Manual.  The telephone  number of the Business
office  must be  advertised  in the white and  yellow  pages of the  telephone
directories distributed in the Territory.

      9.3.  Sales  Services.   AD  shall  solicit  and  identify   prospective
Franchisees for QUIZNO'S Restaurants to be located within the Territory.

      9.4.  Site  Services.  AD shall perform the  following  Site Services on
behalf of  Franchisor  with  respect to  Franchisees  of QUIZNO'S  Restaurants
located in the Territory (unless Franchisor  indicates  otherwise with respect
to Franchisees for whom Franchisor will perform such services):

            (a)   Assist  with   Restaurant   location   selection   for  each
Franchisee,  which shall consist of providing  each  Franchisee  with criteria
for a  satisfactory  site and assisting  each  Franchisee in completing a site
submittal  package  (containing  such  demographic,   commercial,   and  other
information as Franchisor  may reasonably  require) for each location at which
Franchisee proposes to establish and operate a QUIZNO'S Restaurant,  assist in
negotiating   lease  terms,   and  coordinate  the  work  of  contractors  and
architects with respect to the development of each QUIZNO'S Restaurant;

            (b)   Provide  standards  and  specifications  for the build  out,
interior design,  layout, floor plan, signs, designs,  color, and decor of the
Restaurant as prescribed from time to time by Franchisor; and

            (c)   Submit   completed   forms  and  reports  to  Franchisor  as
prescribed  by  Franchisor  from time to time,  including  site  selection and
pre-opening assistance forms and reports related to leases and construction.

      9.5.  Pre-Opening and Opening Support Services:

            (a)   Provide  advice to  Franchisee  regarding  the standards and
specifications  for the  equipment,  supplies,  and materials used in, and the
menu items offered for sale by, the Restaurant and advice regarding  selecting
suppliers  for  purchasing   items  used  in  connection   with  the  QUIZNO'S
Restaurant;

            (b)   Provide  initial  training  and on-site  assistance  for not
less than eighty (80) hours in the opening of QUIZNO'S  Restaurants located in
the Territory; and

            (c)   Provide  guidance in implementing  advertising and marketing
programs,  operating and sales  procedures,  and  bookkeeping  and  accounting
programs.

      9.6.  Ongoing   Support   Services.   With  respect  to  Franchisees  of
QUIZNO'S Restaurants located in the Territory,  AD shall perform the following
Support Services on behalf of Franchisor:

            (a)   Upon  the   reasonable   request  of   Franchisee,   provide
telephone  consultation  regarding the continuing  operation and management of
the Restaurant  and advice  regarding  restaurant  services,  product  quality
control, menu items, and customer relations issues;

            (b)   Provide   on-going   updates  of  information  and  programs
regarding  menu items and their  preparation,  the  Restaurant  business,  and
related Licensed Methods,  including,  without  limitation,  information about
special or new services of Franchisor;

            (c)   Provide  advice and  assistance  to Franchisee in connection
with developing and improving Franchisee's Restaurant;

            (d)   Conduct at least one (1) quality  assurance  inspection  (or
reinspection  in the  case of a  failed  first  inspection)  of each  QUIZNO'S
Restaurant in the Territory  every month in the manner  required by Franchisor
from time to time,  said  inspections  to be verified by written  reports in a
form acceptable to Franchisor and to be conducted by the Managing Owner.

            (e)   Provide  access to  advertising  and  promotional  materials
developed by Franchisor from time to time;

            (f)   At Franchisor's  written  request,  establish an advertising
cooperative for all QUIZNO'S  Restaurants located in the Territory using forms
and procedures supplied by Franchisor; and

            (g)   Submit  periodic  reports to Franchisor on activities in the
Territory using procedures and forms prescribed by Franchisor.

      9.7.  Dealings  with  Franchisees.  AD  acknowledges  that  it is  being
delegated   certain   responsibilities   of  Franchisor  under  the  Franchise
Agreement  to   Franchisees  in  the  Territory.   The   responsibilities   to
Franchisees  are to be performed  by AD as  described in this  Agreement or as
set forth in the AD Manual or other  reasonable  standards and  specifications
provided  by  Franchisor  from  time  to  time,  and the  responsibilities  to
Franchisees will not materially  change during the term of this Agreement.  In
providing  services  to  Franchisees  of QUIZNO'S  Restaurants  located in the
Territory,  AD shall in all respects  comply with the terms and  conditions of
any Franchise  Agreement or other  agreement in effect between  Franchisee and
Franchisor.  AD understands,  however, that its rights as an area director are
only by virtue  of this  Agreement  and that it is not in any  manner a party,
third party beneficiary,  or holder of any other right or title to or interest
in  any  Franchise  Agreement.  Similarly,  no  Franchisee  is a  third  party
beneficiary of this Agreement or any other  agreement  between  Franchisor and
AD. AD agrees  that it may not under any  circumstances  sell any  products or
other items to, or collect any money for any reason from,  Franchisees without
Franchisor's prior written consent.

      9.8.  Area  Director's  Inspections.  AD shall  ascertain  through field
audits,  reviews,  and  inspections  that each Franchisee in the Territory has
complied  satisfactorily with all of the terms and conditions of the Franchise
Agreement,   specifications,   standards,   operating   procedures,   and  the
Franchisee's  Operations  Manual  and  shall  promptly  notify  Franchisee  in
writing,   with  a  copy  and  evaluation   report  to   Franchisor,   of  any
deficiencies;  provided,  however,  AD understands and  acknowledges  that its
inspections and reports are advisory only and that Franchisor  shall have: (a)
all of the rights to inspect and ascertain  compliance of all  Franchisees  as
if this  Agreement  were not in effect;  (b) the sole right to send notices of
default to Franchisee;  (c) the sole right to terminate a Franchise  Agreement
for failure to cure such defaults (if an opportunity to cure is granted);  and
(d) the sole right to take any legal action with  respect to any  violation of
a Franchise  Agreement.  If AD believes  that any  Franchisee in the Territory
has  breached a Franchise  Agreement  with  Franchisor,  AD shall  document in
writing all facts  related to the alleged  breach and request in writing  that
Franchisor  investigate  such alleged breach.  If, as a result of Franchisor's
investigation,  Franchisor  determines that there is a breach by Franchisee of
its Franchise  Agreement with  Franchisor,  Franchisor may take such action as
it deems appropriate.

      9.9.  Obligations  Under  Prime  Leases and  Subleases.  If AD  receives
Franchisor's  prior written approval (i) of the authority to act as a landlord
to a Franchisee  pursuant to Section 3.1; and (ii) of a proposed  Prime Lease,
which  approval  will not be  unreasonably  withheld,  AD may enter  into such
approved Prime Lease as tenant  (subject to  Franchisor's  or its  affiliate's
right  to enter  into a master  lease  with AD and  then a  sublease  with the
Franchisee)  and thereby lease Premises  located in the Territory for the sole
purpose of  subleasing  the  Premises  at AD's cost or  assigning  AD's rights
under a Prime Lease to a Franchisee for a QUIZNO'S  Restaurant.  AD may sublet
the  Premises  to a  Franchisee  if  AD  obtains  Franchisor's  prior  written
approval of the proposed  Sublease,  which  approval will not be  unreasonably
withheld.  Alternatively,  AD may assign its rights  under a Prime  Lease to a
Franchisee if AD obtains  Franchisor's  prior written approval of the proposed
Assignment,  which approval will not be  unreasonably  withheld.  If AD enters
into a Prime Lease, a Sublease,  an Assignment,  or some combination  thereof,
AD shall be  obligated  promptly  to pay all sums due under such  Prime  Lease
and/or Sublease and/or  Assignment,  if not paid by the Franchisee,  and shall
otherwise   comply  with  all  terms  and  conditions  of  all  Prime  Leases,
Assignments, and Subleases executed by AD.

                                   10 MARKS

      10.1. Ownership and Goodwill of Marks.  AD  acknowledges  that its right
to use the Marks is derived  solely from this  Agreement  (unless  such rights
are  granted  under a  separate  written  agreement  with  Franchisor)  and is
limited to use in operating as an AD pursuant to and in  compliance  with this
Agreement.  Any  unauthorized use of the Marks by AD shall constitute a breach
of this Agreement and an infringement of Franchisor's  and TQC's rights in and
to the Marks. AD  acknowledges  and agrees that its usage of the Marks and any
goodwill  established  by that use  shall  inure  to  Franchisor's  and  TQC's
exclusive  benefit  and that this  Agreement  does not confer any  goodwill or
other interests in the Marks upon AD.

      10.2. Limitations  on Use.  AD  shall  not use any  Mark  (a)  with  any
prefix,  suffix, or other modifying words,  terms,  designs, or symbols (other
than  logos  licensed  to AD under this  Agreement),  (b) in  connection  with
unauthorized  services  or  products,  (c) as  part  of  any  domain  name  or
electronic  address  maintained  on the  Internet,  the World Wide Web, or any
other similar  proprietary or common carrier  electronic  delivery system,  or
(d) in any other manner not  expressly  authorized  in writing by  Franchisor.
AD agrees to give such notices of trademark and service mark  registration  as
Franchisor  specifies  and to use and obtain such  fictitious  or assumed name
registrations  required  by  Franchisor  or under  applicable  law. AD further
agrees  that no  service  mark  other  than  "QUIZNO'S"  or such  other  Marks
specified by Franchisor  shall be used in marketing,  promoting,  or operating
AD's Business.

      AD has the right to use the trade name  "QUIZNO'S"  in the legal name of
the entity used to conduct  the AD  Business.  AD may not  register or attempt
to  register  in its own name any trade name using the word  "QUIZNO'S."  When
this  Agreement  expires or is  terminated,  AD must execute any assignment or
other  documents  Franchisor  requires to transfer to Franchisor any rights AD
possesses in a trade name  utilizing  "QUIZNO'S" or any other Mark  Franchisor
owns.

      10.3. Discontinuance  of Use of Marks.  If it becomes  advisable  at any
time for  Franchisor  to  modify  or  discontinue  use of any Mark by AD or to
require  AD to use one or more  additional  or  substitute  trade  or  service
marks, AD agrees to comply, at its own expense,  with Franchisor's  directions
to do so within a reasonable  time after  receiving  notice.  Franchisor  need
not reimburse AD for its direct  expenses of doing so, for any loss of revenue
due to any modified or discontinued  Mark, or for AD's expenses of promoting a
modified or substitute trademark or service mark.

      10.4. Notification of  Infringements  and Claims.  AD shall  immediately
notify Franchisor of any apparent  infringement of or challenge to AD's use of
any Mark,  or claim by any person of any rights in any Mark,  and AD shall not
communicate   with  any  person  other  than  Franchisor  or  its  counsel  in
connection  with  any  such  matter.  AD may  not  settle  any  claim  without
Franchisor's  and TQC's prior  written  consent.  Franchisor  and TQC may take
such action as they deem  appropriate and control  exclusively any litigation,
U.S.  Patent  and  Trademark  Office  proceeding,   or  other   administrative
proceeding  arising  out of any  such  infringement,  challenge,  or  claim or
otherwise  relating to any Mark. AD agrees to execute any and all  instruments
and  documents,  render  such  assistance,  and  perform  such acts as, in the
opinion of  Franchisor's  and TQC's  counsel,  are  necessary  or advisable to
protect and maintain Franchisor's and TQC's interests in the Marks.

                         11 CONFIDENTIAL INFORMATION

      11.1. Confidential  Information.  Franchisor  and  TQC  possess  certain
proprietary  confidential  information consisting of the methods,  techniques,
formats,  specifications,   procedures,   information,   systems,  methods  of
business  management,  sales and  promotion  techniques,  and knowledge of and
experience   in  operating   and   franchising   QUIZNO'S   Restaurants   (the
"Confidential  Information").   Franchisor  shall  disclose  the  Confidential
Information  to AD in the  training  program,  the AD Manual,  and in guidance
furnished  to AD  during  this  Agreement's  term.  AD will  not  acquire  any
interest in the Confidential  Information,  other than the right to utilize it
in the Territory in performing  its duties during the term of this  Agreement,
and  AD  acknowledges   that  the  use  or  duplication  of  the  Confidential
Information  in any other business  venture would  constitute an unfair method
of competition.  AD acknowledges and agrees that the Confidential  Information
is  proprietary,  includes  trade  secrets  of  Franchisor  and  TQC,  and  is
disclosed  to AD  solely  on the  condition  that AD  agrees,  and AD (and its
shareholders,  partners,  members,  and  managers,  if  AD  is a  corporation,
partnership,  or limited  liability  company)  does hereby  agree that AD: (a)
shall not use the Confidential  Information in any other business or capacity;
(b)  shall  maintain  the  absolute   confidentiality   of  the   Confidential
Information  during and after the term of this  Agreement;  (c) shall not make
unauthorized copies of any portion of the Confidential  Information  disclosed
in written or other  tangible  form;  and (d) shall  adopt and  implement  all
reasonable  procedures  prescribed  from time to time by Franchisor to prevent
unauthorized  use or disclosure of the  Confidential  Information.  All ideas,
concepts,  techniques,  or materials  concerning a QUIZNO's  Restaurant  or AD
Business,  whether  or  not  protectable  intellectual  property  and  whether
created by or for AD or its owners or  employees,  must be promptly  disclosed
to  Franchisor  and will be deemed  Franchisor's  and TQC's sole and exclusive
property,  part of the QUIZNO'S System, and works made-for-hire for Franchisor
and TQC.  To the  extent any item does not  qualify as a "work  made-for-hire"
for  Franchisor  and TQC, AD assigns  ownership of that item,  and all related
rights to that item, to Franchisor  and TQC and must sign whatever  assignment
or other  documents  TQC  requests  to show  ownership  or to help TQC  obtain
intellectual property rights in the item.

      11.2. Nondisclosure and Noncompetition  Agreement.  Franchisor  reserves
the  right  to  require  AD  to  have  each  of  its  shareholders,  officers,
directors,  partners,  employees,  members,  and  managers,  and,  if AD is an
individual,  AD's spouse, execute a Nondisclosure and Noncompetition Agreement
in a form approved by Franchisor.

                          12 EXCLUSIVE RELATIONSHIP

      12.1. Exclusive   Relationship.   Franchisor   has  entered   into  this
Agreement  with  AD on the  condition  that  AD  will  deal  exclusively  with
Franchisor.  AD  acknowledges  and agrees that  Franchisor  would be unable to
protect  its  and  TQC's  Confidential  Information  or to  encourage  a  free
exchange of ideas and information  among area directors and Franchisor if area
directors  were permitted to hold interests in any  Competitive  Business,  as
defined  below.  AD  therefore  agrees  that,  during this  Agreement's  term,
neither AD, AD's  shareholders,  members,  owners, or partners who participate
in the  management of AD, nor AD's spouse,  nor, if  applicable,  the Managing
Owner, shall:

            (a)   have any  direct or  indirect  interest  as a  disclosed  or
beneficial owner in a "Competitive  Business,"  wherever located or operating,
defined as a business operating,  or granting franchises or licenses to others
to operate,  a restaurant  or other food service  business  deriving more than
ten percent (10%) of its gross receipts,  excluding gross receipts relating to
the  sale of  alcoholic  beverages,  from  the  sale  of  submarine  or  other
sandwiches   (excluding   QUIZNO'S   Restaurants   operated  under   franchise
agreements with Franchisor);

            (b)   perform services as a director,  officer, manager, employee,
consultant,  representative,  agent, or otherwise for a Competitive  Business,
wherever located or operating;

            (c)   divert or attempt to divert any business  related to, or any
customer or account of, the AD Business,  Franchisor's  business, or any other
QUIZNO'S area director's or  Franchisee's  business,  by direct  inducement or
otherwise,  or divert or attempt to divert the  employment  of any employee of
Franchisor,  TQC, or another area director or  Franchisee  to any  Competitive
Business; or

            (d)   directly or  indirectly  solicit or employ any person who is
employed by Franchisor or TQC.

      Notwithstanding  the  foregoing,  (i) AD shall  not be  prohibited  from
owning  securities in a Competitive  Business if such securities are listed on
a stock exchange or traded on the  over-the-counter  market and represent five
percent (5%) or less of that class of securities  issued and outstanding;  and
(ii) AD will not be deemed to be  operating a  Competitive  Business,  as that
term is defined above, if AD temporarily  operates a QUIZNO'S Restaurant which
either had been sublet to a Franchisee under an approved  Sublease or had been
assigned  to a  Franchisee  under an approved  Assignment  for a period of not
more than ninety (90) consecutive  days following the Franchisee's  failure to
operate such QUIZNO'S  Restaurant for a period of five (5) consecutive days or
a default by the  Franchisee  under the terms of its  Sublease or  Assignment.
If AD operates any QUIZNO'S  Restaurant  for a period  longer than ninety (90)
consecutive  days,  then  Franchisor will have the right to require AD to sign
Franchisor's   then-current  form  of  Franchise   Agreement  to  govern  AD's
operation of such Restaurant.

                            13. OPERATING STANDARDS

      13.1. Standards  of  Service.   AD  shall  at  all  times  give  prompt,
courteous,  and efficient  service to QUIZNO'S  Restaurant  Franchisees in the
Territory.   AD  shall,   in  all  dealings  with   Franchisees,   prospective
Franchisees,  and the  public,  adhere to the  highest  standards  of honesty,
integrity, fair dealing, and ethical conduct.

      13.2. Compliance  with  Laws  and  Good  Business  Practices.  AD  shall
secure and maintain in force all required licenses,  permits, and certificates
relating  to  AD's  activities  under  this  Agreement  and  operate  in  full
compliance  with  all  applicable  laws,  ordinances,   and  regulations.   AD
acknowledges   being  advised  that  many   jurisdictions  have  enacted  laws
concerning the advertising,  sale, renewal, and termination of, and continuing
relationship  between parties to, a franchise  agreement,  including,  without
limitation,  laws concerning  disclosure  requirements.  AD agrees promptly to
become aware of, and to comply with, all such laws and legal  requirements  in
force in the Territory and to utilize only offering  circulars that Franchisor
has approved for use in the applicable jurisdiction.

      13.3. Accuracy   of   Information.   Before   it  offers  or  sells  any
franchise,  AD shall  each  time take  reasonable  steps to  confirm  that the
information  contained  in  any  written  materials,   agreements,  and  other
documents  related to the offer or sale of  franchises is true,  correct,  and
not  misleading  at the time of such  offer or sale and that the offer or sale
of such  franchise will not at that time be contrary to or in violation of any
applicable  state law related to the  registration of the franchise  offering.
Franchisor  shall provide AD with any changes to its disclosure  documents and
other  agreements  on a  timely  basis  and,  upon  request,  provide  AD with
confirmation  that  the  information   contained  in  any  written  materials,
agreements,  or  documents  being  used  by  AD  is  true,  correct,  and  not
misleading,  except  for  information  specifically  relating  to  disclosures
regarding  AD. If AD notifies  Franchisor  of an error in any  information  in
Franchisor's  documents,  Franchisor shall have a reasonable period of time to
attempt to correct any deficiencies,  misrepresentations, or omissions in such
information.

      13.4. Notification  of  Litigation.   AD  shall  notify   Franchisor  in
writing  within  five (5) days after the  commencement  of any  action,  suit,
arbitration,  proceeding,  or  investigation,  or the  issuance  of any order,
writ,   injunction,   award,  or  decree,  by  any  court,  agency,  or  other
governmental  instrumentality  which  names  AD (or  its  Managing  Owner)  or
otherwise concerns the operation or financial  condition of AD, AD's Business,
or any Franchisee.

      13.5. Ownership and  Management of Business.  AD's Business shall at all
times be under the direct,  day-to-day,  full-time  supervision  of AD (or the
Managing  Owner).  AD shall at all times during the term of this Agreement own
and control the Business.  Upon the request of  Franchisor,  AD shall promptly
provide  satisfactory  proof  of  such  ownership.   AD  represents  that  the
Statement of  Ownership,  attached to this  Agreement as Exhibit III, is true,
complete,  and not  misleading.  AD shall  promptly  provide  Franchisor  with
written  notification  if  the  information  contained  in  the  Statement  of
Ownership  changes at any time  during the term of this  Agreement  and comply
with the applicable  transfer provision  contained in Section 15. If AD is not
an  individual,  an individual or individuals  designated by Franchisor  shall
execute the Guaranty and  Assumption of AD's  Obligations  attached  hereto as
Exhibit II and incorporated in this Agreement by this reference.

      13.6. Conflicting   Interests.   AD  shall  at  all  times   faithfully,
honestly,  and  diligently  perform its  obligations  under this Agreement and
continuously exert its best efforts to promote,  enhance, and service QUIZNO'S
Restaurants  in the  Territory.  AD shall not engage in any other  business or
activity,  directly or indirectly,  including operating a QUIZNO'S Restaurant,
that requires any significant  management  responsibility or time commitments,
or otherwise may conflict with AD's obligations under this Agreement,  without
the prior written approval of Franchisor.

      13.7. Insurance.  AD  shall  at  all  times  during  the  term  of  this
Agreement  maintain  in force,  at AD's  sole  expense,  insurance  for the AD
Business of the types,  in the amounts,  and with such terms and conditions as
Franchisor  may from time to time  prescribe  in the AD  Manual or  otherwise.
All of the  required  insurance  policies  shall  name  Franchisor  and TQC as
additional  insureds,  contain a waiver of the  insurance  company's  right of
subrogation  against  Franchisor  and TQC,  and provide that  Franchisor  will
receive  thirty (30) days' prior written  notice of  termination,  expiration,
cancellation, or modification of any such policy.

      13.8. Proof of Insurance  Coverage.  AD will provide  proof of insurance
to  Franchisor  before  beginning  operations  of its AD Business.  This proof
will show that the insurer has been  authorized  to inform  Franchisor  in the
event any  policies  lapse or are  canceled or  modified.  Franchisor  has the
right  to  change  the  types,  amounts,  and  terms of  insurance  that AD is
required  to  maintain  by giving AD prior  reasonable  notice.  Noncompliance
with these  insurance  provisions  shall be deemed a  material  breach of this
Agreement;  and, in the event of any lapse in insurance  coverage,  Franchisor
shall have the right,  in  addition to all other  remedies,  to demand that AD
cease  operations of its AD Business  until  coverage is reinstated or, in the
alternative,  to pay any delinquencies in premium payments and charge the same
back to AD.

      13.9. Advertising  in  Territory.  AD is  required  to spend  monthly an
amount  equal to the greater of (i) one half  percent  (1⁄2%) of the  Population
Portion  of  AD's  Initial  Fee,  or  (ii)  four  hundred  dollars  ($400)  on
advertising  for  prospective  Franchisees in the  Territory.  If, at any time
during the term of this Agreement,  the sum of the number of Restaurants  open
and operating within the Territory plus the number of unopened  Restaurants in
the  Territory  for which  Franchise  Agreements  have been signed (the "Sum")
equals the Development  Quota for the entire term of this  Agreement,  then AD
shall not be  obligated to spend any  additional  amounts on  advertising  for
such time period that the Sum  continues to exceed the  aggregate  Development
Quota.  However,  if the Sum  declines  for any reason  below  that  aggregate
Development  Quota at any time during this Agreement's  term, then AD shall be
required  to  advertise  as  provided  in this  Section.  AD shall  submit  to
Franchisor an accounting  of the amounts  spent on  advertising  within thirty
(30)  days  following  the  end of each  quarter  following  the  date of this
Agreement.  In addition to the  required  amount  spent on local  advertising,
Franchisor  reserves the right to require AD to participate,  at AD's expense,
in a  maximum  of two (2)  trade  shows  each  year,  such  trade  shows to be
selected by Franchisor.  AD agrees to list its Business  telephone  numbers in
the  white  pages  and in  the  yellow  or  classified  telephone  directories
distributed in the Territory.

      13.10....Approval of  Advertising.  Prior to their use by AD, samples of
all advertising and promotional  materials not prepared or previously approved
by Franchisor  shall be submitted to Franchisor  for approval,  which approval
shall  not be  unreasonably  withheld.  AD shall  not use any  advertising  or
promotional  materials that Franchisor has  disapproved.  AD acknowledges  and
understands  that  certain  states  require  the  filing  of  franchise  sales
advertising   materials   with  the   appropriate   state   agency   prior  to
dissemination.  AD  agrees  fully  and  timely  to  comply  with  such  filing
requirements  at AD's own expense unless such  advertising has been previously
filed  with the state by  Franchisor.  Franchisor  may charge AD for the costs
incurred by  Franchisor  in  printing  large  quantities  of  advertising  and
marketing materials supplied by Franchisor to AD at AD's request.

      13.11....Accounting,  Bookkeeping and Records.  AD shall maintain at its
business premises in the Territory all original  invoices,  receipts,  checks,
contracts,  licenses,  acknowledgment  of receipt forms,  and  bookkeeping and
business  records  Franchisor  requires from time to time. AD shall furnish to
Franchisor,  within one hundred twenty (120) days after the end of AD's fiscal
year,  a balance  sheet and profit and loss  statement  for AD's  Business for
such year (or monthly or  quarterly  statement if required by  Franchisor,  in
which case such statements also shall reflect  year-to-date  information).  In
addition, upon request of Franchisor,  within ten (10) days after such returns
are filed, exact copies of federal and state income,  sales, and any other tax
returns  and such  other  forms,  records,  books,  and other  information  as
Franchisor  periodically  requires  regarding AD's Business shall be furnished
to  Franchisor.  AD shall  maintain  all records  and reports of the  business
conducted  pursuant  to this  Agreement  for at least two (2) years  after the
date of termination or expiration of this Agreement.

      13.12....Reports.   AD  shall,  as  often  as  required  by  Franchisor,
deliver to Franchisor a written report of its Business  activities during such
period  required  in  Sections  9.4  and  9.6,  in such  form  and  detail  as
Franchisor may from time to time specify,  including information about efforts
to  solicit  prospective  Franchisees,  the  status  of  pending  real  estate
transactions,  and the status of the  Restaurants in the Territory.  AD shall,
as often as required by Franchisor during the term of this Agreement,  deliver
to Franchisor the quality  assurance  inspection  reports  required in Section
9.6  for  each  Franchisee  in the  Territory  in  such  form  and  detail  as
Franchisor may from time to time specify.

                          14. INSPECTIONS AND AUDITS

      14.1. Inspections  and  Audits.  To  determine  whether AD is  complying
with this  Agreement,  Franchisor or its designee  shall have the right at any
time during normal  business  hours,  and without prior notice to AD, to enter
the  premises in which AD is then  keeping its  business  records and inspect,
and conduct an audit of, the  business  records,  bookkeeping  and  accounting
records,  invoices,  payroll records,  time cards, check stubs, bank deposits,
receipts,  sales tax  records  and  returns,  and other  business  records and
documents of AD's Business.  AD and its employees  shall fully  cooperate with
representatives of Franchisor making,  conducting,  supervising,  or observing
any such inspection or audit.

                                 15. TRANSFERS

      15.1. Transfers  by  Franchisor.   AD   acknowledges   that   Franchisor
maintains  a staff to manage and operate  the  QUIZNO's  System and that staff
members can change  from time to time.  AD  represents  that it has not signed
this Agreement in reliance on any shareholder,  director, officer, or employee
remaining  with  Franchisor  in  that  capacity.  Franchisor  may  change  its
ownership  or form  and/or  assign  this  Agreement  and any  other  agreement
without restriction.

      15.2. Transfers by Area  Director.  AD agrees that the rights and duties
created by this Agreement are personal to AD (or its  shareholders,  partners,
or  members,  if  AD  is a  corporation,  partnership,  or  limited  liability
company) and that  Franchisor has entered into this Agreement in reliance upon
Franchisor's  perceptions  of the individual or collective  character,  skill,
aptitude,  attitude,  business ability,  and financial  capacity of AD (or its
shareholders,  members, managers, or partners). Accordingly, without the prior
written  consent  of  Franchisor,  which  consent  will  not  be  unreasonably
withheld,  neither this Agreement (or any interest herein) nor any part or all
of the ownership of AD may be  transferred.  Any  unauthorized  transfer shall
constitute a breach of this  Agreement  and be void and of no effect.  As used
in this Agreement,  the term "transfer"  shall mean and include the voluntary,
involuntary,  direct, or indirect  assignment,  sale,  subfranchise,  gift, or
other  disposition  by AD (or any of its owners) of any  interest in: (1) this
Agreement; (2) the ownership of AD; or (3) the assets of the Business.

      15.3. Conditions  for  Approval  of  Transfer.  Franchisor  shall not be
obligated  to approve a proposed  transfer  unless AD (and its  owners) are in
full  compliance  with  this  Agreement.  Franchisor  shall  not  unreasonably
withhold its  approval of a proposed  transfer  that meets all the  applicable
requirements of this Section.  The proposed  transferee and its owners must be
individuals  of good moral  character and  otherwise  meet  Franchisor's  then
applicable  standards  for  area  directors.   If  the  transfer  is  of  this
Agreement and the AD Business,  or a Controlling  Interest (as defined  below)
in AD, or is one of a series of transfers  (regardless of the time period over
which such  transfers  occur) which in the aggregate  transfer this  Agreement
and the AD Business  or a  Controlling  Interest  in AD, all of the  following
conditions must be met before or  concurrently  with the effective date of the
transfer:

            (a    The   transferee   has   sufficient   business   experience,
aptitude,  and financial  resources to act as an area  director,  agrees to be
bound by all of the terms and conditions of this Agreement (unless  Franchisor
exercises its option under  subparagraph  (e) below to require the  transferee
to sign its then current form of  agreement),  and,  with its Managing  Owner,
must  have   completed   Franchisor's   training   program   to   Franchisor's
satisfaction;

            (b    AD  has  paid  all  amounts  owed  to   Franchisor   or  its
affiliates and third party  creditors and submitted to Franchisor all required
reports and statements;

            (c    AD or the transferee  has paid  Franchisor a transfer fee in
the amount of five thousand  dollars  ($5,000) to defray  expenses  Franchisor
incurs in connection with the transfer;

            (d    AD  (and  its   transferring   owners)  executes  a  general
release,  in form  satisfactory  to Franchisor,  of any and all claims against
Franchisor  and its affiliates and their  respective  shareholders,  officers,
directors, employees, and agents;

            (e    The transferee  signs an express written  assumption of AD's
obligations  pursuant  to this  Agreement  or, at the  option  of  Franchisor,
executes  an Area  Director  Marketing  Agreement  in the form  then-currently
offered by Franchisor,  the duration of which will end on the expiration  date
of this  Agreement and the terms of which may differ  materially  from any and
all of the terms contained in this  Agreement,  and which shall supersede this
Agreement  in all  respects.  If a new Area  Director  Marketing  Agreement is
signed,  however,  the  transferee  will not be required to pay any additional
initial fee;

            (f    Franchisor  approves the material  terms and  conditions  of
such  transfer,  including,  without  limitation,  that the price and terms of
payment  are  not  so  burdensome  as to  affect  adversely  the  transferee's
business as an area director of Franchisor;

            (g    If AD (and the  transferring  owners)  finances  any part of
the sale price of the transferred  interest,  AD and its owners agree that all
obligations  of the  transferee  under any promissory  notes,  agreements,  or
security interests shall be subordinate to the transferee's  obligation to pay
fees and other amounts due to Franchisor  and its  affiliates and otherwise to
comply with this Agreement; and

            (h    AD (and its  transferring  owners) executes a noncompetition
covenant  in favor of  Franchisor  and the  transferee  with terms the same as
those set forth in Section 17.5.

A person will be deemed to have a "Controlling  Interest" in AD if that person
has the  right  to  vote  twenty-five  percent  (25%)  or  more of the  voting
securities   or  other  forms  of   ownership   interest  of  a   corporation,
partnership,  or other form of entity,  or is entitled to receive  twenty-five
percent  (25%) or more of the net profits of any such entity,  or is otherwise
able to  direct  or  cause  the  direction  of  that  entity's  management  or
policies.

      15.4. Transfer  to an  Entity.  If AD is in full  compliance  with  this
Agreement,  AD may transfer this  Agreement  with  Franchisor's  prior written
approval,  which approval shall not be unreasonably withheld, to a corporation
or  other  entity  of which AD owns  not  less  than  two-thirds  (2/3) of the
ownership  interest.  The  transfer fee  described in Section  15.3(c) will be
waived by  Franchisor,  and all owners of such entity must sign a Guaranty and
Assumption of AD's Obligations attached as Exhibit II.

      15.5. Franchisor's  Approval of  Transfer.   Franchisor  has thirty (30)
days from the date of the written  notice to approve or  disapprove in writing
AD's   proposed   transfer.   Written   notice  shall  mean  and  include  all
documentation  necessary to evaluate the transferee.  AD acknowledges that the
proposed  transferee  shall be evaluated for approval by  Franchisor  based on
the same criteria as are currently  being used to assess new area directors of
Franchisor  and  that  such  proposed   transferee   shall  be  provided,   if
appropriate,   with  such  disclosures  required  by  state  or  federal  law.
Franchisor  may review all  information  regarding  the Business that AD gives
the  transferee  and give the  transferee  copies of any  reports  that AD has
given Franchisor or Franchisor has made regarding the Business.

      15.6. Death  or  Disability  of  Area   Director.   Upon  the  death  or
permanent  disability  of  AD  (or a  Managing  Owner  of  AD),  the  personal
representative  of such  person  shall  transfer  his or her  interest in this
Agreement  or  such  interest  in  AD  to  an  approved   third  party.   Such
disposition   of  this   Agreement  or  such  interest   (including,   without
limitation,  transfer by bequest or inheritance)  shall be completed  within a
reasonable  time,  not to  exceed  six (6)  months  from  the date of death or
permanent disability (unless extended by probate proceedings),  and be subject
to all the terms and  conditions  applicable  to  transfers  contained in this
Section.  Failure to transfer the interest in this  Agreement or such interest
in  AD  within  said  period  of  time  shall  constitute  a  breach  of  this
Agreement.  The  term  "permanent  disability"  means  a  mental  or  physical
disability,  impairment,  or condition  that prevents AD or the Managing Owner
from performing the essential functions of AD.

      15.7. Right of First  Refusal.  In the event AD (or, if  applicable,  an
owner) wishes to sell,  transfer,  gift,  assign,  or otherwise dispose of any
interest in this  Agreement or in AD, or all or a  substantial  portion of the
assets of the  Business,  AD agrees to grant to  Franchisor a thirty  (30) day
right of first  refusal to purchase  such rights,  interest,  or assets on the
same terms and  conditions  as are  contained in the written offer to purchase
submitted to AD by a bona fide  proposed  purchaser;  provided,  however,  the
following additional terms and conditions shall apply:

            (a    AD  shall  notify  Franchisor  of such  offer by  sending  a
written  notice to Franchisor  enclosing a copy of the written offer signed by
the bona fide proposed purchaser;

            (b    The thirty  (30) day  right of first refusal period will run
concurrently  with the period in which Franchisor has to approve or disapprove
the proposed transferee;

            (c    Such  right  of  first  refusal  arises  for  each  proposed
transfer,  and any material  change in the terms or conditions of the proposed
transfer, even if to the same bona fide proposed purchaser,  shall be deemed a
separate  offer for which a new thirty  (30) day  right of first refusal shall
be given to Franchisor;

            (d    If the  consideration  or manner  of  payment  offered  by a
third  party is such that  Franchisor  could not  reasonably  be  expected  to
furnish the same,  then Franchisor may purchase the interest which is proposed
to be sold for the  reasonable  cash  equivalent.  If the parties cannot agree
within a reasonable time on the cash consideration,  an independent  appraiser
shall be designated by Franchisor,  whose  determination  will be binding upon
the  parties.  All  expenses  of the  appraiser  shall be paid for  equally by
Franchisor and AD; and

            (e    If  Franchisor  chooses not to  exercise  its right of first
refusal,  Franchisee  shall  be  free  to  complete  the  sale,  transfer,  or
assignment,  subject to compliance  with Sections 15.3 and 15.5.  Absence of a
reply to AD's  notice of a proposed  sale within the thirty (30) day period is
deemed  a  waiver  of such  right of  first  refusal  but not a waiver  of the
required compliance with Sections 15.3 and 15.5.

      15.8. Transfers of Prime Lease or Sublease  Interest.  In the event of a
proposed  transfer,  as that term is defined in  Section  15.2,  of all or any
portion of the AD's  interest in a Prime  Lease or Sublease or an  Assignment,
the AD agrees that Section 15 of this  Agreement  will apply to such  proposed
transfer  (other  than  the  transfer  fee)  and  agrees  to be  bound by such
provisions with respect to the transfer.

                            16. TERM AND EXPIRATION

      16.1. Term.  The primary  term of this  Agreement is for a period of ten
(10) years from the  Effective  Date,  unless  sooner  terminated  as provided
herein.

      16.2. Renewal.  At the end of the primary term, AD shall have the option
to renew its area  director  rights for an additional  ten (10) year  term, so
long as AD:

            (a    At least  sixty (60) days prior to  expiration  of the term,
executes  the  form  of  Area  Director  Marketing  Agreement  then  in use by
Franchisor,  which agreement may contain terms materially different from those
in  this  Agreement;  provided  that AD  shall  not be  required  to pay a new
Initial Fee and  commission  percentages  and definition of the Territory will
not be altered;

            (b    Has complied with all  provisions of this  Agreement  during
the primary  term,  including  the payment on a timely  basis of all fees due.
"Compliance"  shall mean,  at a minimum,  that AD has not received any written
notification  from  Franchisor of a breach of this  Agreement  more than three
(3) times during the primary term;

            (c    Is not in  default or under  notification  of breach of this
Agreement at the time it gives notice under Section 16.4;

      (d    Executes a general release,  in a form satisfactory to Franchisor,
of any  and all  claims  against  Franchisor  and its  affiliates,  and  their
respective shareholders,  officers, directors,  employees, and agents, arising
out of or relating to this Agreement; and

            (e    Has  agreed on a new  Development  Quota for the  additional
term in accordance with Section 16.3.

      16.3. New Development Quota.

            (a    In  addition  to those items  listed in Section  16.2,  this
Agreement  may be  renewed  only if AD and  Franchisor  have  agreed  on a new
Development  Quota for the additional  term at least ninety (90) days prior to
expiration of the primary term.

            (b    If  Franchisor  proposes  a new  Development  Quota  for the
additional  term that results in excess of one (1)  additional  Restaurant per
twenty-five  thousand (25,000) population in the Territory,  AD may submit the
matter to arbitration  before and in accordance with the rules of the American
Arbitration  Association  in order  to  determine  whether  the  proposed  new
Development  Quota is  reasonable.  AD shall not have the right,  however,  to
submit this matter to  arbitration  if Franchisor  proposes a new  Development
Quota  for  the  additional  term  that  is  less  than  or  equal  to one (1)
additional  Restaurant per  twenty-five  thousand  (25,000)  population in the
Territory.   The  decision  of  the   arbitrator   shall  be   non-appealable,
conclusive,  and binding on all parties.  The  arbitration  fee shall be split
equally by Franchisor  and AD. Each party shall be  responsible  for any other
expenses it incurs in association with such arbitration,  including attorneys'
and  expert  witness  fees,  notwithstanding  provisions  of Section 19 to the
contrary.  The arbitration shall be held in Denver, Colorado.

            (c    In the event that AD is not  satisfied  with the decision of
the  arbitration,  AD shall  have  fifteen  (15)  days  from the date that the
arbitration  decision  is  rendered  to waive  its  option  to renew  its area
director rights.

            (d    If AD has  notified  Franchisor  of its  intent  to renew as
provided in Section  16.4,  and so long as a demand for  arbitration  has been
filed  prior  to the  expiration  of the  primary  term  and the  parties  are
diligently  pursuing such arbitration,  this Agreement shall  automatically be
extended  until  fifteen  (15) days  following  the date that the  arbitration
award is rendered.

      16.4. Exercise of Renewal  Option.  AD may  exercise its option to renew
by giving  written  notice of such  exercise to  Franchisor  not more than one
hundred  eighty  (180) days nor less than one hundred  twenty (120) days prior
to the expiration of the primary term.

      16.5. Conditions  of  Refusal.  Franchisor  shall  not be  obligated  to
offer AD renewal upon the  expiration of this  Agreement if AD fails to comply
with any of the  above  conditions  of  renewal.  In such  event,  except  for
failure  to  execute  the  then-current  Area  Director  Marketing  Agreement,
Franchisor  shall give AD notice of  expiration at least sixty (60) days prior
to the  expiration  of the term,  and such notice  shall set forth the reasons
for such refusal to offer renewal.  Upon the expiration of this Agreement,  AD
shall comply with the provisions of Section 17.3.

                                17. TERMINATION

      17.1. By Area  Director.  AD may  terminate  this  Agreement at any time
during its term with one hundred eighty (180) days' advance  written notice to
Franchisor.

      17.2. By Franchisor.  Franchisor  shall have the right to terminate this
Agreement,  effective  upon delivery of written  notice of  termination to AD,
unless  otherwise  noted below (subject to any state laws to the contrary,  in
which  case  state  law  shall  prevail),  if AD (or any of its  shareholders,
members, owners, managers, or partners or the Managing Owner):

            (a    Fails to  satisfactorily  complete the  training  program as
provided in Section 7.1;

            (b    Has made any material  misrepresentation  or omission in its
application to be an area director or in operating as an area director;

            (c    Fails to comply with any requirements  under the federal and
state  franchise  laws,  including,  but  not  limited  to,  communicating  in
written,  verbal, or other form to any prospective  Franchisee any information
or  presentation  which  states  or  suggests  a  specific  level  or range of
potential or actual sales,  income,  gross or net profits,  food costs,  labor
costs,  or other  operating  costs unless that  information or presentation is
identical  to that  contained  in  Franchisor's  offering  circular  and other
disclosure documents;

            (d    Fails to meet the  Development  Quota set forth in Exhibit I
and does not  correct  such  failure  within  ninety  (90) days after  written
notice of such failure to comply is delivered to AD;

            (e    Fails to comply with any other  provision of this  Agreement
or any mandatory  specification,  standard,  or operating procedure prescribed
by Franchisor  and does not correct such failure within thirty (30) days after
written notice of such failure to comply is delivered to AD;

            (f    Surrenders,  transfers  control of, or makes an unauthorized
transfer  of this  Agreement  or an  ownership  interest  in AD or abandons or
fails actively to operate the Business;

            (g    Is  convicted  by a trial court of or pleads no contest to a
felony or any other crime or offense  that is, in the  opinion of  Franchisor,
likely to affect  adversely the goodwill  associated with the Marks or engages
in any  conduct  which  might  adversely  affect the  reputation  of  QUIZNO'S
Restaurants or the goodwill associated with the Marks;

            (h    Is declared bankrupt or insolvent,  voluntarily institutes a
bankruptcy  proceeding under the Bankruptcy  Code, or is adjudicated  bankrupt
as a result of an involuntary  petition in bankruptcy  being filed against it.
(This  provision  might not be enforceable  under federal  bankruptcy  law, 11
U.S.C. §101 et seq.);

            (i    Abandons or ceases to operate  the AD Business  for a period
of thirty (30)  consecutive  days or any  shorter  period  that  indicates  an
intent by AD to  discontinue  operation of the AD Business,  unless  precluded
from doing so by an event  beyond  AD's  reasonable  control  (other  than for
financial reasons), or abandons any Franchised Location owned by AD;

            (j    Has received  three (3) notices of default  from  Franchisor
within a twelve  (12) month  period,  regardless  of whether the defaults were
cured by AD;

            (k    Defaults  under the terms and conditions of any Prime Lease,
Sublease,  or Assignment and fails,  upon request from  Franchisor,  to assign
all or a portion  of the AD's  interest  in such Prime  Lease and any  related
Sublease or Assignment to Franchisor or one of its affiliates  within five (5)
days  after the  Franchisor's  notifying  AD of such  request.  If AD fails to
assign all of its interest(s) as requested by Franchisor  within five (5) days
after Franchisor's  notification,  Franchisor may act as Attorney in Fact with
respect to such  assignment,  and AD hereby  appoints the Franchisor to act as
its attorney in fact for such  assignment,  which  appointment is coupled with
an  interest.  In the event that any such  leasehold  interest  is assigned to
Franchisor  or one of its  affiliates,  all  funds  held by AD on  behalf of a
Franchisee under a Sublease or an Assignment,  including,  but not limited to,
all security,  damage,  or other deposits,  shall be transferred to Franchisor
immediately; or

            (l    Fails to pay any amounts due  Franchisor  or its  affiliates
within  ten (10) days after  receiving  notice  that such fees or amounts  are
overdue.

      17.3. Rights and  Obligations  of Area  Director  Upon  Termination  or
Expiration.  Upon  termination of this Agreement,  whether pursuant to Section
17.1 or 17.2, or upon expiration of this Agreement  pursuant to Section 16, AD
agrees:

            (a    To  pay  Franchisor  within  fifteen  (15)  days  after  the
effective date of termination or expiration of this  Agreement,  or such later
date that the amounts due to Franchisor  are  determined,  such fees,  amounts
owed for purchases by AD from  Franchisor or its  affiliates,  interest due on
any of the  foregoing,  and  all  other  amounts  owed  to  Franchisor  or its
affiliates which are then unpaid;

            (b    To refrain from,  directly or indirectly,  at any time or in
any manner (except with respect to QUIZNO'S  Restaurant  franchises  owned and
operated  by  AD),  identifying  itself  or any  business  as a  current  area
director or authorized agent of Franchisor or its affiliates,  using any Mark,
any colorable  imitation thereof, or other indicia of a QUIZNO'S Restaurant in
any manner or for any purpose,  or  utilizing  for any purpose any trade name,
trademark  or service  mark,  or other  commercial  symbol  that  suggests  or
indicates a connection or association with Franchisor or its affiliates;

            (c    To  immediately  deliver to Franchisor  all past and present
franchise  sales  leads and  records  and all  contracts,  acknowledgments  of
receipt,   and  other  information  and  records  related  to  Franchisees  of
Franchisor in the Territory;

            (d    To  immediately   deliver  to  Franchisor  all   advertising
materials,  the AD Manual, and all other manuals,  forms,  offering circulars,
franchise  sales  brochures,  and  other  materials  containing  any  Mark  or
otherwise  identifying  or  relating  to  the  sale  or  service  of  QUIZNO'S
Restaurants;

            (e    To  refrain   from   communicating   in  any   manner   with
Franchisees  concerning  Franchisor or obligations arising from this Agreement
or the Franchise Agreement, except as expressly authorized by Franchisor;

            (f    To take such  action  required to cancel all  fictitious  or
assumed names or equivalent registrations relating to AD's use of any Mark;

            (g    To notify the telephone company and all telephone  directory
publishers  of the  termination  or  expiration  of  AD's  right  to  use  any
telephone  number and any regular,  classified,  or other telephone  directory
listings  associated  with  any  Mark  and  to  authorize  their  transfer  to
Franchisor  or  its  designee.   AD  acknowledges  that,  as  between  it  and
Franchisor,  Franchisor  has the sole rights to and interest in all telephone,
telecopy,  or facsimile machine numbers and directory listings associated with
any Mark. AD authorizes  Franchisor,  and hereby  appoints  Franchisor and any
of its officers as AD's attorney-in-fact,  to direct the telephone company and
all telephone  directory  publishers to transfer any telephone,  telecopy,  or
facsimile machine numbers and directory  listings relating to AD's Business to
Franchisor  at its  direction,  should  AD fail or  refuse  to do so,  and the
telephone  company  and all  telephone  directory  publishers  may accept such
direction or this Agreement as conclusive  evidence of Franchisor's  exclusive
rights in such  telephone  numbers and  directory  listings  and  Franchisor's
authority to direct their transfer; and

            (h    Furnish  Franchisor,  within  thirty  (30)  days  after  the
effective date of termination or  expiration,  with evidence  satisfactory  to
Franchisor of AD's compliance with the foregoing obligations.

      17.4. Confidential  Information.  AD agrees that,  upon  termination  or
expiration  of  this  Agreement,   AD  shall  immediately  cease  to  use  any
Confidential  Information  disclosed pursuant to this Agreement or as a result
of its  relationship  with Franchisor in any business or otherwise  (except in
connection  with  the  operation  of  a  QUIZNO'S  Restaurant  pursuant  to  a
Franchise  Agreement with  Franchisor)  and return to Franchisor all copies of
the AD Manual and any other confidential materials loaned to AD by Franchisor.

      17.5. Covenant Not to Compete.  Upon  termination  or expiration of this
Agreement,  AD (and its shareholders,  officers,  directors,  owners, members,
managers,   or  partners,   and  the  spouses  of  these  individuals  and  AD
(collectively,  "Bound Parties")) agrees that, for two (2) years commencing on
the later of the effective  date of  termination  or expiration or the date on
which AD and all Bound Parties  begin to comply with this Section,  neither AD
nor any Bound  Party shall have any direct or  indirect  interest  (through an
immediate  family member of AD or any Bound Party or otherwise) as a disclosed
or  beneficial  owner,  investor,   partner,   director,   officer,  employee,
consultant,   representative,   agent,   or  in  any  other  capacity  in  any
Competitive  Business  located in any  territory  in which  Franchisor  or its
affiliates  or area  directors  conduct  business  at the later of the time of
termination  or expiration or the date on which AD and all Bound Parties begin
to comply  with this  Section.  The  restrictions  of this  Section  shall not
apply to the  ownership of shares of a class of  securities  listed on a stock
exchange or traded on the over-the-counter  market that represent five percent
(5%) or less of the  number of shares of that class of  securities  issued and
outstanding.  AD and each Bound Party expressly  acknowledge that they possess
skills and  abilities  of a general  nature and have other  opportunities  for
exploiting  such skills.  Consequently,  enforcement  of the covenants made in
this Section will not deprive  them of their  personal  goodwill or ability to
earn a living.

      17.6. No Further Right to Payment.  Upon  expiration or  termination  of
this Agreement,  AD forfeits all fees paid to Franchisor and remains liable to
Franchisor  for all amounts then due to  Franchisor.  AD shall have no further
right to receive  payment of  commissions  or  Royalty  Fees from  Franchisor,
except for those  commissions  or Royalty Fees which have been fully earned by
AD up through the date of  expiration  or  termination.  For  purposes of this
Agreement,  "fully earned" commissions shall mean commissions due on franchise
sales for which all  conditions  described in Section 6.1 have been  fulfilled
by AD for the purchase of a franchise for a QUIZNO'S  Restaurant to be located
within the  Territory.  "Fully  earned"  Royalty Fees shall mean those Royalty
Fees which accrue up through the date of expiration or  termination  which are
otherwise owed to AD.  Franchisor  shall have the right  immediately to assume
control of and manage all franchise  sales in the Territory and to receive all
Royalty Fees from Franchisees in the Territory.  Any fully earned  commissions
or  Royalty  Fees  which  are due to AD will be paid in  accordance  with  the
provisions of Section 6.

      17.7. Continuing  Obligations.  All obligations of Franchisor and AD and
the Bound Parties that  expressly or by their nature survive the expiration or
termination  of this  Agreement  shall  continue  in  full  force  and  effect
subsequent to and  notwithstanding  its  expiration or  termination  and until
they are satisfied or by their nature expire.

      17.8. State and  Federal  Law.  The  parties  acknowledge  that,  in the
event the terms of this  Agreement  regarding  termination  or expiration  are
inconsistent  with applicable state or federal law, such law shall govern AD's
rights regarding termination or expiration of this Agreement.

                        18. RELATIONSHIP OF THE PARTIES

      18.1. Relationship  of the Parties.  It is understood  and agreed by the
parties that this Agreement does not create a fiduciary  relationship  between
them, that the parties are independent  contractors,  that Franchisor appoints
AD as its special  agent for a  particular  purpose,  and that nothing in this
Agreement is intended to make either party a general agent, subsidiary,  joint
venturer,  partner,  employee,  or  servant of the other for any  purpose.  AD
shall  conspicuously   identify  itself  in  all  dealings  with  Franchisees,
prospective Franchisees,  lessors,  contractors,  suppliers, public officials,
and others as the owner of its own Business  under an Area Director  Marketing
Agreement  with   Franchisor  and  shall  place  the  notices  of  independent
ownership  required by Franchisor on signs,  forms,  stationery,  advertising,
and other materials.

      18.2. Payment of Third  Party  Obligations.  Neither  Franchisor  nor AD
shall make any express or implied agreements,  guaranties, or representations,
or incur any debt,  in the name or on  behalf of the other or  represent  that
their  relationship  is other  than  franchisor  and  special  agent;  neither
Franchisor  nor AD  shall be  obligated  by or have any  liability  under  any
agreements  or  representations  made by the  other  that  are  not  expressly
authorized  under this  Agreement;  nor shall  Franchisor be obligated for any
damages to any person or property  directly or  indirectly  arising out of the
operation  of AD's  Business,  unless (and then only to the extent)  caused by
Franchisor's negligent or willful action or failure to act.

      18.3. Independent  Contractors.  AD may  delegate  its duties under this
Agreement to independent  contractors  provided that AD first receives written
approval  from  Franchisor  and  complies  with all state laws  which  require
broker  or other  registrations  for such  persons.  Franchisor  reserves  the
right at any time to  withdraw  the  approval  of any  independent  contractor
engaged by AD to fulfill its duties and obligations under this Agreement.

      18.4. Indemnification.  AD agrees to indemnify and reimburse  Franchisor
and its affiliates,  and their respective stockholders,  directors,  officers,
employees,  agents,  and assignees (the  "Indemnified  Parties") for, and hold
the Indemnified  Parties  harmless  against,  any loss,  liability,  taxes, or
damages  (actual or  consequential)  and all reasonable  costs and expenses of
defending any claim brought  against any of them or any action in which any of
them  is  named  as  a  party  (including,   without  limitation,   reasonable
accountants',  attorneys', and expert witness fees, costs of investigation and
proof of facts, court costs, other litigation expenses,  and travel and living
expenses),  which any of them may  suffer,  sustain,  or incur by  reason  of,
arising from, or in connection with any acts,  omissions,  or activities of AD
or any of its employees or  independent  contractors  unless (and then only to
the extent) caused by the Indemnified  Party's  negligence.  Each  Indemnified
Party  shall  have the  right to  defend  any such  claim  against  it at AD's
expense and agree to settlements or take any other  remedial,  corrective,  or
other  actions.  This  indemnity  shall  continue  in full  force  and  effect
subsequent  to and  notwithstanding  the  expiration  or  termination  of this
Agreement.

                                 19. DISPUTES

      19.1. Governing  Law/Consent  to Venue and  Jurisdiction.  Except to the
extent  governed by the United  States  Trademark  Act of 1946 (Lanham Act, 15
U.S.C.  § 1051 et  seq.)  or  other  federal  law,  this  Agreement  shall be
interpreted  under the laws of the State of Colorado,  and any dispute between
the parties,  whether arising under this Agreement or from any other aspect of
the parties'  relationship,  shall be governed by and determined in accordance
with the substantive  laws of the State of Colorado,  which laws shall prevail
in the  event  of any  conflict  of law.  AD and  Franchisor  have  negotiated
regarding a forum in which to resolve any  disputes  arising  between them and
have  agreed  to  select  a forum  in  order  to  promote  stability  in their
relationship.  Therefore,  if a claim  is  asserted  in any  legal  proceeding
involving  the AD or any Bound Party and  Franchisor,  the parties  agree that
the exclusive  venue for disputes  between them shall be in the District Court
for the City & County of  Denver,  Colorado,  or the  United  States  District
Court for the  District of Colorado,  and each party  waives any  objection it
might have to the personal jurisdiction of or venue in such courts.

      19.2. Waiver of Jury Trial.  Franchisor,  AD, and the Bound Parties each
waive their right to a trial by jury.  AD, the Bound  Parties,  and Franchisor
acknowledge  that the  parties'  waiver  of jury  trial  rights  provides  the
parties with the mutual  benefit of uniform  interpretation  of this Agreement
and  resolution of any dispute  arising out of this Agreement or any aspect of
the parties'  relationship.  AD, the Bound  Parties,  and  Franchisor  further
acknowledge  the  receipt and  sufficiency  of mutual  consideration  for such
benefit.

      19.3. Limitation  of  Claims.  AD and the  Bound  Parties  agree  not to
bring any claim  asserting  that any of the Marks  are  generic  or  otherwise
invalid.  Except  with regard to AD's  obligation  to pay  Franchisor  and its
affiliates  amounts due pursuant to this  Agreement or  otherwise,  any claims
between the  parties  must be  commenced  within one (1) year from the date on
which the party  asserting  the claim  knew or should  have known of the facts
giving  rise  to the  claim,  or such  claim  shall  be  barred.  The  parties
understand  that such time limit might be shorter  than  otherwise  allowed by
law.  AD and the Bound  Parties  agree  that their  sole  recourse  for claims
arising between the parties shall be against  Franchisor or its successors and
assigns.  AD and the Bound  Parties  agree that the  shareholders,  directors,
officers,  employees,  and agents of Franchisor and its affiliates (other than
AD) shall not be personally  liable nor named as a party in any action between
Franchisor  and AD or any Bound  Party.  The parties  further  agree that,  in
connection with any such proceeding,  each must submit or file any claim which
would  constitute  a  compulsory  counterclaim  (as  defined by Rule 13 of the
Federal Rules of Civil  Procedure)  within the same proceeding as the claim to
which  it  relates.  Any  such  claim  which  is not  submitted  or  filed  as
described  above  will  be  forever   barred.   The  parties  agree  that  any
proceeding will be conducted on an individual,  not a class-wide,  basis,  and
that a proceeding  between  Franchisor  and AD or the Bound Parties may not be
consolidated  with any  other  proceeding  between  Franchisor  and any  other
person  or  entity.  No party  will be  entitled  to an award of  punitive  or
exemplary  damages (provided that this limitation shall not apply to statutory
penalties  such as those  set  forth in 15  U.S.C.  §  1117(a)).  No  previous
course of dealing shall be admissible to explain,  modify,  or contradict  the
terms of this  Agreement.  No implied  covenant of good faith and fair dealing
shall be used to alter the express terms of this Agreement.

                         20. MISCELLANEOUS PROVISIONS

      20.1. Invalidity.  If  any  provision of this  Agreement is held invalid
by any tribunal in a final  decision  from which no appeal is or can be taken,
such  provision  shall be deemed  modified to eliminate  the invalid  element,
and, as so modified,  such provision  shall be deemed a part of this Agreement
as though  originally  included.  The remaining  provisions of this  Agreement
shall not be affected by such modification.

      20.2. Modification.   No  amendment,  waiver,  or  modification  of this
Agreement  shall be effective  unless it is in writing and signed by the party
or  parties  against  whom such  amendment  or waiver  is to be  enforced.  AD
acknowledges that Franchisor may modify its standards and  specifications  and
operating and  marketing  techniques  set forth in the AD Manual  unilaterally
under any conditions and to the extent to which  Franchisor deems necessary to
protect,  promote,  or  improve  the Marks  and the  quality  of the  Licensed
Methods.

      20.3. Attorneys'  Fees.   In the  event  of any  default  on the part of
either party to this Agreement,  in addition to all other remedies,  the party
in default will pay the prevailing party (as determined by the  decision-maker
in the  proceeding)  all amounts due and all  damages,  costs,  and  expenses,
including reasonable  attorneys' fees, incurred by the prevailing party in any
legal action or other  proceeding as a result of such  default,  plus interest
at the  lesser  of two  percent  (2%)  per  month  or the  highest  commercial
contract  interest  rate  allowable  by law  accruing  from  the  date of such
default.

      20.4. Injunctive  Relief.  Nothing herein shall prevent Franchisor or AD
from seeking  injunctive  relief in appropriate  cases to prevent  irreparable
harm.

      20.5. No Waiver.  No waiver of any  condition  or covenant  contained in
this Agreement,  or failure to exercise a right or remedy, by AD or Franchisor
shall be considered  to imply or constitute a further  waiver by Franchisor or
AD of the same or any other condition, covenant, right, or remedy.

      20.6. No Right to Set  Off.  AD  shall not be allowed to set off amounts
owed to  Franchisor  for fees or other  amounts due against any monies owed to
AD, which right of set off is hereby expressly waived by AD.

      20.7. Effective Date.  Regardless of the date first written above,  this
Agreement  shall not be effective  until executed by Franchisor,  as evidenced
by dating and signing by an officer of Franchisor.

      20.8. Review of  Agreement.  AD  acknowledges  that it has had a copy of
Franchisor's  UFOC in its  possession for not less than ten (10) full business
days,  and this  Agreement in its  possession  for not less than five (5) full
business  days,  during  which time AD has had the  opportunity  to submit the
same for review and advice by a  professional  of AD's choosing  before freely
executing this Agreement.

      20.9. Entire  Agreement.  This Agreement (which includes the attachments
and Exhibits  expressly  incorporated)  contains the entire agreement  between
the  parties  and  supersedes  any and all  prior  agreements  concerning  the
subject  matter  covered by this  Agreement.  AD agrees and  understands  that
Franchisor  shall not be liable or obligated for any oral  representations  or
commitments  made  prior  to  this  Agreement's  execution  or for  claims  of
negligent or fraudulent  misrepresentation  and that no  modifications of this
Agreement  shall be effective  except those in writing signed by both parties.
Franchisor does not authorize and will not be bound by any  representation  of
any  nature  other  than  those  expressed  in  this  Agreement.   AD  further
acknowledges  and  agrees  that no  representations  have  been  made to it by
Franchisor  regarding  projected sales volumes,  market  potential,  revenues,
profits of AD's Business,  or operational  assistance  other than as stated in
this Agreement or in any disclosure  document provided in connection with this
Agreement.  AD  acknowledges  and agrees that any  delegation of  Franchisor's
duties and  obligations to area directors does not assign or confer any rights
under any Franchise  Agreement (unless entered into between AD and Franchisor)
upon  AD and  that  AD is  not a  third  party  beneficiary  of any  Franchise
Agreement  between  Franchisor  and a  Franchisee  who is  not  also  AD.  Any
policies that  Franchisor  adopts and implements from time to time are subject
to  change,  are  not a part  of  this  Agreement,  and  are  not  binding  on
Franchisor.

      20.10....Notices.    All  notices   required  to  be  given  under  this
Agreement  shall  be given in  writing,  by  certified  mail,  return  receipt
requested,  or by an overnight  delivery  service  providing  documentation of
receipt,  to addresses set forth in the first  paragraph of this Agreement or,
with respect to notices to AD, to the address of the AD  Business,  or at such
other  addresses as  Franchisor  or AD may  designate  from time to time,  and
shall be deemed  delivered  (a) on the date shown on the return  receipt or in
the  courier's  records  as the date of  delivery  or (b) on the date of first
attempted delivery, if actual delivery cannot for any reason be made.

      20.11....Acknowledgment.  BEFORE SIGNING THIS AGREEMENT,  AD SHOULD READ
IT CAREFULLY WITH THE ASSISTANCE OF LEGAL COUNSEL.  AD ACKNOWLEDGES THAT:

            (A)  THE  SUCCESS OF THIS BUSINESS  VENTURE  INVOLVES  SUBSTANTIAL
RISKS AND DEPENDS UPON AD'S ABILITY AS AN INDEPENDENT  BUSINESS PERSON AND ITS
ACTIVE PARTICIPATION IN THE DAILY AFFAIRS OF THE BUSINESS, AND

            (B)  NO ASSURANCE OR WARRANTY,  EXPRESS OR IMPLIED, HAS BEEN GIVEN
AS TO THE POTENTIAL  SUCCESS OF SUCH BUSINESS  VENTURE OR THE EARNINGS  LIKELY
TO BE ACHIEVED, AND

            (C)  NO  STATEMENT,   REPRESENTATION,  OR  OTHER  ACT,  EVENT,  OR
COMMUNICATION,  EXCEPT  AS SET  FORTH  IN THIS  DOCUMENT  AND IN ANY  OFFERING
CIRCULAR  SUPPLIED  TO AD, IS BINDING ON  FRANCHISOR  IN  CONNECTION  WITH THE
SUBJECT MATTER OF THIS AGREEMENT.

           [The remainder of this page is intentionally left blank.]

      IN WITNESS  WHEREOF,  the parties have executed,  sealed,  and delivered
this Agreement in counterparts on the date first mentioned above.

THE QUIZNO'S FRANCHISE COMPANY,           AREA DIRECTOR:
a Colorado corporation

By:___________________________            By:_________________________

     Its:_____________________                 Its:___________________

Date:_________________________            Date:_______________________

                                   EXHIBIT I

                                     RIDER
                     TO AREA DIRECTOR MARKETING AGREEMENT
                    BETWEEN THE QUIZNO'S FRANCHISE COMPANY
                                      AND

                    DATED

      1. Territory.   The  Territory   referred  to  in  Section  2.1  of  the
Agreement shall be the following geographic area:

      2. Initial  Fee.  The  Initial  Fee  payable to  Franchisor  by AD under
Section 5.1 of the Agreement shall consist of the following  amounts:  (i) ten
thousand  dollars  ($10,000)  which  pays  for the  initial  training  program
("Training  Portion");  and (ii) an amount  equal to the product of the agreed
upon  estimated  population  within  the  Territory  and the price per unit of
population,  which  shall  be  $0.07  ("Population  Portion"),  calculated  as
follows:

A.    Population Estimate                                   = ________________
B.                                                          Price Per Person
                                                                        =
                                                            $0.07
C.    (Population Portion) (AxB)                            =_________________
D.                                                          Plus       $10,000
                                                            (Training Portion)
                                                                  $10,000
E.    Plus $1,000 Finance Administration Fee (If applicable) =

INITIAL FEE (C+D+E)                                   =      =================

Notwithstanding  the  foregoing,  the  price  per  unit of  population  may be
increased  proportionately if there are existing Restaurants  operating in the
Territory at the time AD signs this Agreement.

      Unless  otherwise  agreed,  the  Initial  Fee  is  payable  in  cash  or
certified  funds  or by  wire  transfer.  Franchisor  and AD  agree  that  the
Population  Portion of the  Initial  Fee will not be subject to change for any
reason,  including  subsequent  revisions  of the Bureau of Census  population
estimates.

      3. Development  Quota. AD shall meet the following  Development Quota by
the last day of each Sales Quarter during the term of this Agreement:

Sales Year          Sales Quarter   Cumulative Number of
                                    QUIZNO'S Restaurants to
                                    be Open and in Operation
                                    in the Territory
                                    ("Development Quota")

2001                First           _______________________

                    Second          _______________________

                    Third           _______________________

                    Fourth          _______________________

2002                First           _______________________

                    Second          _______________________

                    Third           _______________________

                    Fourth          _______________________

2003                First           _______________________

                    Second          _______________________

                    Third           _______________________

                    Fourth          _______________________

2004                First           _______________________

                    Second          _______________________

                    Third           _______________________

                    Fourth          _______________________

2005                First           _______________________

                    Second          _______________________

                    Third           _______________________

                    Fourth          _______________________

2006                First           _______________________

                    Second          _______________________

                    Third           _______________________

                    Fourth          _______________________

2007                First           _______________________

                    Second          _______________________

                    Third           _______________________

                    Fourth          _______________________

2008                First           _______________________

                    Second          _______________________

                    Third           _______________________

2009                First           _______________________

                    Second          _______________________

                    Third           _______________________

                    Fourth          _______________________

2010                First           _______________________

                    Second          _______________________

                    Third           _______________________

                    Fourth          _______________________

2011                First           _______________________

                    Second          _______________________

                    Third           _______________________

                    Fourth          _______________________

                         TOTAL      _______________________

QUIZNO'S  Restaurants,   QUIZNO'S  Express  Restaurants,   and  Company  Owned
Restaurants count toward fulfillment of AD's cumulative Development Quota.

THE QUIZNO'S FRANCHISE COMPANY,     AREA DIRECTOR
a Colorado corporation
                                          (Print Name)

By:_______________________________        By:______________________________

     Its: ________________________             Its:________________________

                                  EXHIBIT II

                          GUARANTY AND ASSUMPTION OF
                          AREA DIRECTOR'S OBLIGATIONS

      In  consideration  of, and as an  inducement  to, the  execution  of the
above Area Director  Marketing  Agreement  (the  "Agreement")  by THE QUIZNO'S
FRANCHISE  COMPANY  ("Franchisor"),  each  of the  undersigned  ("Guarantors")
personally   and   unconditionally   (1)  guarantees  to  Franchisor  and  its
affiliates  and their  successors  and assigns,  for the term of the Agreement
and  thereafter as provided in the  Agreement,  that Area Director  defined in
the  Agreement  ("AD")  shall  punctually  pay  and  perform  each  and  every
undertaking,  agreement,  and  covenant  set  forth in the  Agreement  and (2)
agrees  personally  to be bound by, and  personally  liable for the breach of,
each and every  provision  in the  Agreement,  including,  but not limited to,
those specifically identified below.

      1. Waiver.  Each of the undersigned waives:

            (a)   acceptance  and notice of acceptance  by Franchisor  and its
      affiliates of the foregoing undertakings;

            (b)   notice  of  demand  for  payment  of  any   indebtedness  or
      nonperformance of any obligations hereby guaranteed;

            (c)   protest  and notice of default to any party with  respect to
      the   indebtedness  or   nonperformance   of  any   obligations   hereby
      guaranteed; and

            (d)   any  right he or she may have to  require  that an action be
      brought against AD or any other person as a condition of liability.

      2. Consents.  Each of the undersigned consents and agrees that:

            (a)   his  or  her  direct  and  immediate  liability  under  this
      guaranty shall be joint and several;

            (b)   he or she shall render any payment or  performance  required
      under the Agreement upon demand if AD fails or refuses  punctually to do
      so;

            (c)   such liability  shall not be contingent or conditioned  upon
      pursuit by  Franchisor or its  affiliates of any remedies  against AD or
      any other person;

            (d)   such  liability  shall  not  be  diminished,   relieved,  or
      otherwise   affected  by  any  extension  of  time,   credit,  or  other
      indulgence  which  Franchisor  or its  affiliates  may from time to time
      grant to AD or to any other person, including,  without limitation,  the
      acceptance of any partial  payment or  performance  or the compromise or
      release of any  claims,  none of which  shall in any way modify or amend
      this  guaranty,  which shall be continuing  and  irrevocable  during the
      term of the Agreement; and

            (e)   he or she  shall  be  bound  by the  restrictive  covenants,
      confidentiality  provisions, and indemnification provisions contained in
      Sections 11, 12, 17.4, 17.5, and 18.4 of the Agreement; and

            (f)   the  provisions  contained  in Section 19, and the costs and
      attorneys'  fees  provision  contained in Section 20.3, of the Agreement
      shall govern this Guaranty,  and such provisions are  incorporated  into
      this Guaranty by this reference.

      IN WITNESS  WHEREOF,  each of the  undersigned  has  affixed  his or her
signature, effective as of the ____ day of _______________________.

PERCENTAGE OF OWNERSHIP                   GUARANTOR(S)
INTERESTS IN AREA DIRECTOR

                                          ___________________________________
                                          (Print Name)

                                          ___________________________________
                                          Signature

                                          ___________________________________
                                          ___________________________________
                                          ___________________________________
                                          Address

                                          ___________________________________
                                          Telephone Number
                                          ___________________________________
                                          ___________________________________
                                          ___________________________________
                                          (Print Name)

                                          Signature

                                          ___________________________________
                                          ___________________________________
                                          ___________________________________
                                          Address

                                          ___________________________________
                                          Telephone Number

                                  EXHIBIT III

                            STATEMENT OF OWNERSHIP

Area Director:_________________________________________________________________

_______________________________________________________________________________
Trade name (if different from above):__________________________________________

_______________________________________________________________________________
                               Form of Ownership
                                  (Check One)

-------------------------------------------------------------------------------

_____ Individual _____ Partnership _____ Corporation _____ Limited Liability Company

                                                    _____ Other (List):

      If a  Partnership,  provide  name and  address of each  partner  showing
percentage  owned,  whether  active in  management,  and indicate the state in
which the partnership was formed.

      If a Corporation,  give the state and date of incorporation,  the names
and addresses of each officer and  director,  and list the names and addresses
of every shareholder showing what percentage of stock is owned by each.

      If a Limited  Liability  Company,  give the state and date of formation,
the name and  address  of the  manager,  and list the names and  addresses  of
every member and the percentage of membership interest held by each member.

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

      AD  acknowledges  that  this  Statement  of  Ownership  applies  to  the
QUIZNO'S AD Business  authorized under the Area Director Marketing  Agreement.
Use  additional  sheets  if  necessary.  Any  and  all  changes  to the  above
information  must  be  reported  to  (and in some  cases  first  approved  by)
Franchisor in writing.

Date: ______________________________   Name__________________________

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