Capital 94, LLC is a financing company thatassists operating Firehouse Subs’ Franchiseeswith expansion opportunities by lending fundsfor future Firehouse Subs’ locations.

What is Capital 94?

Loan Eligibility

• Who is Eligible?

Existing Franchisees with one or more profitablerestaurant locations running at a positive capacity for atleast 12 months

Franchisee must have superior operations at currentrestaurant(s)

Franchisee must be opening a “New” FHS location ORmaking required improvements under a “Successor”Franchise Renewal Agreement.

Loan Criteria• What Can Be Financed?

Tangible property including: murals, registers, equipment, signage, décor, furniture, leaseholdimprovements & related build-out expenses

• What Terms Do We Offer? Loan Amounts up to 80% of build-out/tangible property expenses

Terms from 4 -8 Years (48 - 96 Months) *Successor Loans from 3 – 5 Years (36-60 Months)

Fixed Interest that will be established during the loan process

Loan Origination Fee equal to 1.0% of loan amount

No Pre-payment Penalty

First payment will be due on the 1st of the month 60 days after location is opened (loan balance willaccrue interest) *Successor Loans – First payment due on the 1st of the month following loan closing.

• What Are The Collateral Requirements? Security Interest/Collateral: 1st and only lien holder on tangible property at the new location, with next

position lien holder on FFE (Furniture, Fixtures & Equipment) at existing locations; Franchise Agreementon all locations; and Personal Guarantees by all borrowers and their spouses (if applicable)

Complete Schedule of Bids: Including purchase orders or invoices from vendors for tangible property(including shipping, taxes and set-up fees)

Loan Application• How to Apply:

Email capital94@firehousesubs.com to request a Loan Application Package

Download the Loan Application Package and Authorization for Release of Information Formfrom Fire-COMM/Library/Capital94/Capital94LoanApplication

• Required Documentation: Applicant(s) will complete the following:

Business Credit Application

Schedule of Business Debt

Personal Financial Statement(s) for each partner or owner

Personal Cash Flow for each partner or owner

Authorization for Release of Information

Schedule of Bids

Two prior year Federal Tax Returns, both business and personal (for each applicant)

Latest three months company Bank Statements

Financial Statements (current YTD and previous YE) for all current restaurant locations

Loan Application (cont.)

• Submitting Loan Application Package Mail or email your complete loan package to:

Capital 94, LLC

Attn: Patricia Pedroni

3400-8 Kori Road

Jacksonville, FL 32257

Email: capital94@firehousesubs.com

Questions, contact Patricia Pedroni at (904) 886-8300 x 231

• Review & Notification: Within 14 days of receipt of a “complete” loan package, applicant will be notified of

acceptance or denial of the loan request.

Loan Review• Application Review:

Capital 94 checks on “Standing” with Firehouse of America, LLC (FOA)

Franchise Compliance Department

Financial Services Department

Area Representative (AR)

Franchise Business Manager (FBM)

If Zee is in good standing, the following checks are performed:

Background Check (on each partner or owner)

Credit Check (on each partner or owner)

UCC (Uniform Commercial Code) Search with Secretary of State to establish existing Security Interests

Once checks are complete, Loan Request is reviewed by Mary Rawlins, Capital 94’sChief Lending Officer

Applicant is notified of acceptance or denial within 14 days of receipt of a

“complete” loan package.

Loan Confirmation• Loan Approval:

Acceptance email with initial credit terms is sent out to borrower(s)

Once agreeable terms are reached, a Loan Commitment Letter (Letter ofAcceptance) is emailed to borrower(s)

Once signed Commitment Letter is received, a closing date is scheduled and loandocuments are prepared.

Loan Closing

• Loan Closing Package Prepared: Promissory Note

Loan and Security Agreement

Personal Guarantee(s)

EFT (Electronic Funds Transfer) Authorization Form

Affidavit for Delivery/Receipt and Execution of Loan Documents (outlines all parties involved& must be notarized)

• Copy of Loan Closing Package is emailed to the borrower, along with a list ofother required documentation (example: Certificate of Insurance, copy ofsigned lease, payment for origination fee, etc.)

• Closing Package, Initial Funding Check and Instructions are provided to theCapital 94 Loan Officer or Representative assigned to facilitate the closing

• Funding Initial Funding is provided by check at Closing (Typical amount $50K)

As proof of the use of prior funding is received, future draws are deposited by EFT

Post Note Closing• UCC Filing:

UCC Financing Statement is filed with Secretary of State to securethe collateral interests of Capital 94

• Payment Collection: Monthly Loan Payment Statements are emailed to borrower

Payments are drafted by EFT on the 1st of each month

• Ongoing Requirements of Borrower: Provide quarterly Financial Statements for review

Provide updated Certificates of Insurance for all renewals orinsurance company changes, including Worker’s Compensation*Capital 94, LLC must be listed as “Loss Payee” on the Evidence ofProperty Insurance certificate.

Provide 941 Payroll Tax Return and payment verification

Provide State Department of Revenue Sales Tax Returns andpayment verification

Loan Satisfaction

• Final payment or Pay-off Amount is received

• Loan Satisfaction Letter is sent to borrower

• UCC Financing Statement is terminated,releasing security interest in location(s) andreleasing all personal guarantees.