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Bet LEGAL eo-an 102/08 ree EP 1.92 BIL Te: SeNoER i “ship 20196690672 Quiznos Sus October 2, 2006 Ellen Blickman The Zig Zag Restaurant Group LLC 3731 Allen St Unit 4 Allentown, PA 18104-4685 Re: Quiznos Store # 6309 NOTICE OF TERMINATION Dear Elien Blickman: ‘This isin reference to that certain franchise agreement, dated December 16, 2005 (the “Agreement'), signed by The Zig Zag Restaurant Grou Agreement, and govering the ownership and operation 7001 C, the Franchisee as defined in the ‘Quiznos Sub restaurant located at N Route 308 Ste 105, Coopersburg, PA 18036 {the ‘Restaurant") Despite several recent warnings regarding the consequences of not ‘following the reguited speatications for the preparation of the Prime Rib Cheesesteak sandwich, an audit of your Restaurant on September 22, 2006 revealed that you are cisregarding the specifications for this sendwich in @ substantial and material way. Specticaly, afier purchasing a small Prime Rib Cheeseteak sandwich and weighing the meat, it was determined thai you were using only 4.00 ‘ounces of prime rib in preparing the sandwich. Your faiure to comply with the required specications is a clear vioiafon of secon 13.4 of the Agreement and 2 vanety of other provisions in which you agreed to operate your Restaurant in accordance with system specications ln addition, | would call your attention to the following provisions of the Agreement: Section 11.1(2) provides that the Franchisee will not “detract from or adversely reflect upon the name and reputation of Franchisor and the goodwill associated with the QUIZNO'S. name and Marks." Failure to compiy with @ specification for a core menu item, particularly one that is the subject of 2 current national marketing campaign, certainly detracts ‘rom ‘and adversely reflects upon Quiznos. = Section 11.1(b) provides that the “Franchisee will conduct itself and operate its Restaurant in compliance with al! applicable laws ... and in such a manner so as to promote good public image...." One of the outcomes of your failure to comply with the required specification for an advertised product is that you are engaged in false and misleading adverising. This is both a violation of applicable laws and an act which clearly does not promote 2 good public image. TQSCH LLC, 1475 Lawrence Street, Suite 400, Denver, CO 80202 Teleptone 720.359.3300 Facsimile 720.359.3399 Ellen Blckman ‘The Zig Zag Restaurant Group LLC October 2, 2006 Page 20f2 * Section 18.2 provides that “Franchisor shall have the right, atts option, to terminate this ‘Agreement and all rights granted to Franchisee, witnout affording Franchisee eny ‘opportunity to cure any default if Franchisees “engages in conduct that, in the sole judgment of Franchisor, materially impairs the goodwill associated with the Marks." It is ‘our judgment that your failure to comply with product and system specifications in such a significant and material way, as outined above, certainly impairs the goodwill associated with the Quiznos brand and trademarks In ight ofthe foregoing, in ight of the substantial way in which you have deviated from the required specications, and in ight ofthe damage that your actons are causing to the Quiznos brand and to all of your fellow Quiznos franchise owners, alin complete disregard of recent written warnings, we hereby exercise our right to terminate your Agreement, effective immediately. in light of the foregoing termination, please refer to your Agreement with respect to your post- termination obigations. Those obligations inciude, among other things, immediate closure of the Restaurant, return of all Confidential Information, and oompliance with the post-term non- Competition covenents. While we have no tolerance for this type of violation, if you have any questions or would like to discuss this ‘urher, please feel ee to contact me al your convenience at ‘daigle(@auiznos.com or via telephone at 720.931.2243, Sincerely, hae! R, Daigle Generai Counse! ‘LegatLegeladoiPRAN-AD\2ig Zeg\Terintion (Spec - Underporionng).6208 oe ‘TQSC ULLC, 1475 Lawrence Street, Suite 400, Denver, CO 80202 Telephone 720.359.3300 Facsimile 7203593399 » DHL: Track (By number) Detail Page 1 of2 > Track by number Track by reference > Get delivery signature > Track DHL Same Day service Log in to DHL vee [—— fk 1 Remember my User ID Log in EE > Forgot your Password? DHLUSA Hom Track results detail Tracking results detail for 20196693672 “racking summary Curent Stas Shipment Selvereé. View Signature Delivered on 11472008 8:90am Delivered to Resisense Signs for by JBLICKEN — Whatie nis? Tracking history Date and Tie seats Location 042008 930am Shipment devere. Alertown, PA: Wy sth 827am Wit deer exon. osvz00e £23.an Dairy Atemted ‘Aletown, PA Pree Cal an6 2738876, 7:35 an ‘red at DHL Jat Aortown, PA 2tt an “rans trough sor fy Wimington, OH 2a on Transt trough softy Wimington OH tozr2008 7.2 pn Departing org Awore, CO 430m Picked Up By DAL, Shier Door Ship From: ship To: Shipment infomation QUEZNOS ADM TEN BLICKUAN Srp date: 1022008 Denver, CO 80202 Ateniown, PA 18106 Present Unites States Unites States Tota weight to Shio Type: Letter Expre Shipment Reference: Aion: Attention: Service: Nex Day, ‘QUIZNOS ADMIN ELLEN BLICKMAN Special Serve: Signe Description: ‘Tracking deta provided by DHL: 10/4/2006, 8:48.12 am pt. Track nev ‘You are suthorzed to use DHL tacking systems solely to rack shipments tendered by of for you to £ use of DHL tacking systems and information = sively prone, Note on weight: ‘The weighs cspiayed on this website are te weighs provided when the shipment was created. Ac ‘weights may be diferent and wil be provided on invoice, New to OHL? Questions? Registration fs qui an¢ easy Ard sa registered Were hereto heio! User youl have access io services and ois to help you Contac: DH Ship your packages easly and effcenty. » Reister Now hhttp://track dhl-usa.com//TrackByNbr.asp?nav=Tracknbr: 10/4/2006