MARCOS PIZZA - FDD UFOC ITEM 3 Detail

ITEM 3 LITIGATION

We are not the subject of any litigation at this time.

We did file on March 14, 2008 an action in Federal Court for a Declaratory Judgment against Doctors,Associates, Inc. (DEI) the franchisor of Subway� Restaurants. The lawsuit filed seeks an order to enjoin DEI �,from enforcing its ..interpretation of its "Non-compete" covenants in its franchise agreements that prohibit its franchisees from purchasing Marco''s pizza� franchises and stores on the basis that Subway� restaurants now sell pizza in addition to their line of submarine style sandwiches. We have waived the requirement that Subway� franchisees that purchase Marco''s franchises sell submarine style sandwiches in their Marco''s stores. We are unable to estimate the maximum costs of such litigation,