MEMORANDUM 100 Mortown Way - Shelbyville, KY 40065 Confidentiality and Disclaimer

OFFERING Subject Property MEMORANDUM 100 Mortown Way - Shelbyville, KY 40065 Confidentiality and Disclaimer

Marcus & Millichap hereby advises all guarantee of future success. Similarly, the thorough due diligence investigation. prospective purchasers of Net Leased lease rate for some properties, including Marcus & Millichap has not made any property as follows: newly-constructed facilities or newly- investigation, and makes no warranty or Table of Contents acquired locations, may be set based on a representation, with respect to the income The information contained in this tenant’s projected sales with little or no or expenses for the subject property, the Marketing Brochure has been obtained record of actual performance, or future projected financial performance of Investment Overview. 3 from sources we believe to be reliable. comparable rents for the area. Returns are the property, the size and square footage However, Marcus & Millichap has not and not guaranteed; the tenant and any of the property and improvements, the Investment Highlights. 4 will not verify any of this information, nor guarantors may fail to pay the lease rent presence or absence of contaminating has Marcus & Millichap conducted any or property taxes, or may fail to comply substances, PCB’s or asbestos, the investigation regarding these matters. with other material terms of the lease; compliance with State and Federal Financial Analysis. 5 Marcus & Millichap makes no guarantee, cash flow may be interrupted in part or in regulations, the physical condition of the warranty or representation whatsoever whole due to market, economic, improvements thereon, or the financial about the accuracy or completeness of environmental or other conditions. condition or business prospects of any Concept & Guarantor Overview. 6 any information provided. Regardless of tenant history and lease tenant, or any tenant’s plans or intentions guarantees, Buyer is responsible for to continue its occupancy of the subject As the Buyer of a net leased property, it is conducting his/her own investigation of all property. The information contained in this In Recent News: Merger Details. 7 the Buyer’s responsibility to independently matters affecting the intrinsic value of the Marketing Brochure has been obtained confirm the accuracy and completeness of property and the value of any long-term from sources we believe to be reliable; Surrounding Area. 8 all material information before completing lease, including the likelihood of locating a however, Marcus & Millichap has not any purchase. This Marketing Brochure is replacement tenant if the current tenant verified, and will not verify, any of the not a substitute for your thorough due should default or abandon the property, information contained herein, nor has Property Photos 9-10 diligence investigation of this investment and the lease terms that Buyer may be Marcus & Millichap conducted any opportunity. Marcus & Millichap expressly able to negotiate with a potential investigation regarding these matters and denies any obligation to conduct a due replacement tenant considering the makes no warranty or representation Surrounding Area Photos 11 diligence examination of this Property for location of the property, and Buyer’s legal whatsoever regarding the accuracy or Buyer. ability to make alternate use of the completeness of the information provided. Location Overview. 12 property. All potential buyers must take appropriate Any projections, opinions, assumptions or By accepting this Marketing Brochure you measures to verify all of the information estimates used in this Marketing Brochure agree to release Marcus & Millichap Real set forth herein. Regional Map. 13 are for example only and do not represent Estate Investment Services and hold it the current or future performance of this harmless from any kind of claim, cost, NON-ENDORSEMENT NOTICE property. The value of a net leased expense, or liability arising out of your Demographics. 14 property to you depends on factors that investigation and/or purchase of this net Marcus & Millichap Real Estate Investment should be evaluated by you and your tax, leased property. Services, Inc. (“M&M”) is not affiliated with, financial and legal advisors. sponsored by, or endorsed by any Market Overview. 15 CONFIDENTIALITY AND DISCLAIMER commercial tenant or lessee identified in Buyer and Buyer’s tax, financial, legal, and this marketing package. The presence of construction advisors should conduct a The information contained in the following any corporation’s logo or name is not careful, independent investigation of any Marketing Brochure is proprietary and intended to indicate or imply affiliation with, net leased property to determine to your strictly confidential. It is intended to be or sponsorship or endorsement by, said satisfaction with the suitability of the reviewed only by the party receiving it from corporation of M&M, its affiliates or property for your needs. Marcus & Millichap and should not be subsidiaries, or any agent, product, made available to any other person or service, or commercial listing of M&M, and Like all real estate investments, this entity without the written consent of is solely included for the purpose of investment carries significant risks. Buyer Marcus & Millichap. This Marketing providing tenant lessee information about and Buyer’s legal and financial advisors Brochure has been prepared to provide this listing to prospective customers. must request and carefully review all legal summary, unverified information to and financial documents related to the prospective purchasers, and to establish ALL PROPERTY SHOWINGS ARE BY 100 Mortown Way - Shelbyville, KY property and tenant. While the tenant’s only a preliminary level of interest in the APPOINTMENT ONLY. PLEASE past performance at this or other locations subject property. The information CONSULT YOUR MARCUS & MILLICHAP is an important consideration, it is not a contained herein is not a substitute for a AGENT FOR MORE DETAILS. Representative Photo

INVESTMENT SUMMARY Marcus & Millichap is pleased to present this exclusive listing for a Burger King located at 100 Mortown Way in Shelbyville, KY. Built in 2018, the subject property consists of roughly 2,704 square feet of building space on approximately a 1.35 acre parcel. This investment opportunity is subject to a brand new 20-year Triple- Net (NNN) sale-leaseback with zero landlord responsibilities. The lease will commence upon the close of escrow and will be subject to six (6), five (5) year tenant renewal options. The initial annual rent will be $117,000 and is scheduled to increase by one percent (1.00%) annually starting in year 11 and continuing throughout the base term and option periods. In each option period the rent will increase by one percent (1.00%) annually in years 1 through 3 and the rent will remain flat in years 4 and 5. The lease will be guaranteed by New CFH, LLC, a wholly owned subsidiary of Carrols Restaurant Group, Inc. New CFH, LLC is currently a 230-unit entity.

The subject property benefits from being well-positioned in a dense retail corridor consisting of national and local tenants, shopping centers, and academic institutions all within close proximity of this property. Major national tenants include: Walmart, Lowe’s, Walgreens, CVS Pharmacy, Dollar Tree, Zaxby’s, Taco Bell, Wendy’s, as well as many others. Accommodations in the immediate area include: Best Western, EconoLodge and Red Roof Inn. This Burger King property also benefits from its close proximity to several academic institutions. The most notable is Martha Layne Collins High School, which has a total enrollment exceeding 1,015 students and is located within a 2.5-mile radius. Louisville International Airport (SDF), home to Worldport, the worldwide hub of UPS, serves over 3,900,000 passengers annually and is located approximately 28 miles west of the subject property.

New CFH, LLC (“NCFH”) is a 230-Unit entity, and wholly owned subsidiary of Carrols Restaurant Group, Inc. NCFH currently operates 165 Burger King restaurants under Nashville Quality, LLC as well as 58 Popeyes locations under Frayser Quality, LLC. NCFH acquired Carolina Quality, LLC (“CQL”) in 2014 as a platform to execute a growth strategy in the Burger King system. At the time of the acquisition, CQL was a Burger King franchisee operating 22 restaurants across five states. Since the acquisition NCFH has grown the business significantly and currently operates in states such as Alabama, Arkansas, Indiana, Kentucky, Louisiana, Mississippi, North Carolina, Tennessee, and Virginia. Investment Highlights PRICE: $1,950,000 | CAP: 6.00% | RENT: $117,000

About the Investment ✓ Brand New 20-Year Sale-Leaseback ✓ Triple Net (NNN) Lease with Zero Landlord Responsibilities ✓ Attractive Rental Increases of One Percent (1.0%) Annually Beginning in Year 11 ✓ Six (6) Tenant Renewal Periods of Five (5) Years Each About the Location ✓ Dense Retail Corridor| Walmart, Lowe’s, Walgreens, CVS Pharmacy, Zaxby’s, Taco Bell, Best Western, and More ✓ Strong Academic Presence | Within a 2.5-Mile Radius of Martha Layne Collins High School | Over 1,015 Students Enrolled ✓ Excellent Real Estate Fundamentals | Louisville, KY is Situated Approximately 28 Miles East of Shelbyville | Louisville International Airport (SDF), Home to Worldport, the Worldwide Hub of UPS, Serves Over 3,900,000 Passengers Annually ✓ Strong Traffic Counts | Over 20,800 and 55,110 Vehicles Per Day Along Taylorsville Road and Interstate-64 About the Tenant / Brand ✓ Tenant on the Lease is Nashville Quality, LLC | Operates 165 Burger Kings and Rapidly Growing ✓ Lease Guaranteed by New CFH, LLC | 230-Unit Entity | New CFH, LLC is a wholly owned subsidiary of Carrols Restaurant Group, Inc. ✓ Carrols Restaurant Group is One of the Largest Restaurant Companies and Franchisee’s in the United States | 1,000+-Unit Operator ✓ Strong Track Record With Proven Operational Expertise ✓ In May 2019, Carrols Merged With Cambridge Franchise Holdings LLC, Acquiring 165 Burger Kings and 58 Popeyes Restaurants in 10 Southeastern and Southern States

Burger King – Shelbyville, KY 4 Financial Analysis PRICE: $1,950,000 | CAP: 6.00% | RENT: $117,000

PROPERTY DESCRIPTION RENT SCHEDULE Property Burger King Lease Year(s) Annual Rent Monthly Rent Rent Escalation (%) Property Address 100 Mortown Way Year 1-10 $117,000 $9,750 - City, State, ZIP Shelbyville, KY 40065 Year 11 $118,170 $9,848 1.00% Year Built / Renovated 2018 Year 12 $119,352 $9,946 1.00% Building Size 2,704 SF Year 13 $120,545 $10,045 1.00% Lot Size +/- 1.35 Acres Year 14 $121,751 $10,146 1.00% Type of Ownership Fee Simple Year 15 $122,968 $10,247 1.00% THE OFFERING Year 16 $124,198 $10,350 1.00% Purchase Price $1,950,000 Year 17 $125,440 $10,453 1.00% CAP Rate 6.00% Year 18 $126,694 $10,558 1.00% Annual Rent $117,000 Year 19 $127,961 $10,663 1.00% Year 20 $129,241 $10,770 1.00% LEASE SUMMARY Property Type Net-Lease Quick-Service Restaurant Tenant / Guarantor Nashville Quality, LLC / New CFH, LLC Ownership Type Public (NYSE: TAST) Original Lease Term 20 Years from COE Lease Commencement Upon Close of Escrow Lease Expiration 20 Years from COE Lease Term Remaining 20.0 Years Lease Type Triple-Net (NNN) Roof & Structure Tenant Responsible Rental Increases 1.0% Annually Starting Year 11 Options to Renew Six (6), Five (5)-Year Options

Burger King – Shelbyville, KY 5 Concept & Guarantor Overview New CFH, LLC GREAT FOOD COMES FIRST New CFH, LLC (“NCFH”) is a 230-Unit entity, and wholly owned subsidiary Every day, more than 11 million guests visit BURGER KING® restaurants around of Carrols Restaurant Group, Inc. NCFH currently operates 165 Burger the world. And they do so because our restaurants are known for serving high- King restaurants under Nashville Quality, LLC as well as 58 Popeyes quality, great-tasting, and affordable food. Founded in 1954, BURGER KING® is locations under Frayser Quality, LLC. NCFH acquired Carolina Quality, LLC the second largest fast food hamburger chain in the world. The original HOME (“CQL”) in 2014 as a platform to execute a growth strategy in the Burger OF THE WHOPPER®, our commitment to premium ingredients, signature King system. At the time of the acquisition, CQL was a Burger King recipes, and family-friendly dining experiences is what has defined our brand franchisee operating 22 restaurants across five states. Since the for more than 50 successful years. acquisition NCFH has grown the business significantly and currently operates in states such as Alabama, Arkansas, Indiana, Kentucky, #2 Fast Food Hamburger Chain, Globally Louisiana, Mississippi, North Carolina, Tennessee, and Virginia. • More than $16 billion in annual system-wide sales, and nearly 350,000 Carrols, LLC team members, worldwide. The concept has a market capitalization of Carrols, LLC is Burger King’s largest franchisee and has operated BURGER KING® roughly $10 billion. restaurants since 1976. As of April 30, 2019, the Company completed the acquisition of 221 additional BURGER KING® and Popeyes restaurants in 10 Global Brand Presence | Fully – Franchised Southern and Southeastern states. Carrols, which operates 1,010 Burger King Business Model and 55 Popeyes restaurants in 23 states following the acquisition, is the largest • Nearly 14,000 restaurants in 100+ countries. QSR industry-leading EBITDA franchisee of Restaurant Brands International, Inc. Carrols LLC’s direct parent margins company, Carrols Restaurant Group, INC. (Nasdaq: TAST), is one of the only publicly traded companies solely controlling Burger King Franchises and one of Rich Heritage | Stable, Reliable Long-Term the largest restaurant companies and franchisee’s in the United States. Ownership Burger King Worldwide, Inc. • Founded in 1954 with deep ties to the Miami Community. Burger King has Founded in 1954, Burger King® is the second largest fast food hamburger chain been actively managed by 3G since 2010. in the world. The original Home of the Whopper, the Burger King® system operates in approximately 14,000 locations serving more than 11 million guests 3G Capital daily in 100 countries and territories worldwide. Approximately 100 percent of 3G Capital is a global investment firm focused on long-term value, with a Burger King® restaurants are owned and operated by independent franchisees, particular emphasis on maximizing the potential of brands and businesses. The many of them family-owned operations that have been in business for decades. firm and its partners have a strong history of operational excellence, board Restaurant Brands International involvement, deep sector expertise, and an extensive global network. 3G Capital Restaurant Brands International is one of the world's largest quick service works in close partnership with management teams at its portfolio companies restaurant companies with approximately $23 billion in system sales and over and places a strong emphasis on recruiting, developing and retaining top-tier 18,000 restaurants in 100 countries. Restaurant Brands International owns two talent. In October 2010, 3G Capital completed the acquisition of Burger King®, of the world’s most prominent and iconic quick service restaurant brands – Tim one of the most widely-recognized consumer brands in the world. Hortons® and Burger King®. These independently operated brands have been serving their respective guests, franchisees, and communities for over 50 years.

Burger King – Shelbyville, KY 6 https://www.qsrmagazine.com/news/carrols-restaurant-group-acquires-220-restaurants-through-merger In Recent News: Merger Details Carrols Restaurant Group (TAST) Acquires 221 Restaurants and Expand into Popeyes Brand Through Merger with Cambridge Franchise Holdings “This is a transformational transaction for our Company,” said Dan Accordino, Chairman and CEO of Carrols. “It further strengthens our position in the Burger King system and provides us the opportunity to continue executing our Burger King acquisition and expansion strategy. Cambridge also brings a strong, growing second brand in Popeyes to Carrols’ portfolio, and they have demonstrated strong returns on new restaurant development in their geographies. We look forward to partnering with them as we work to improve returns for our stockholders through additional, diversified alternatives for future growth and effective capital allocation.”

Carrols Restaurant Group, Inc. announced that on April Dan Accordino, chairman and CEO of Carrols, says, 9 percent PIK Series C Convertible Preferred Stock that 30, 2019 it completed the acquisition of 165 Burger “This transaction is an exciting growth catalyst for will be convertible into approximately 7.45 million King and 55 Popeyes restaurants from Cambridge Carrols. We believe it strengthens our position in the shares of Carrols common stock. The conversion of the Franchise Holdings, LLC in 10 Southern and Burger King system by providing us the opportunity to preferred stock will be subject to a vote of Carrols’ Southeastern states. Carrols, which operates 1,010 continue executing our acquisition and expansion stockholders to occur at the Company’s 2019 Annual Burger King and 55 Popeyes restaurants in 23 states strategy, and adds Popeyes, a growing brand that Meeting of Stockholders and will automatically convert following the acquisition, is the largest franchisee of further enhances our expansion alternatives. We also into common stock upon stockholder approval of such Restaurant Brands International, Inc. (the franchisor of believe that we have the potential to improve the conversion. All shares issued to Cambridge are subject Burger King, Popeyes, and Tim Hortons). performance of the Cambridge restaurants and to to a two-year restriction on sale or transfer subject to leverage their footprint and development team as we certain limited exceptions. On a fully-diluted, as-if As previously announced, Carrols has also entered into launch the next phase of growth for the benefit of converted basis after giving effect to both the an Area Development and Remodeling Agreement with Carrols’ shareholders.” conversion of the Cambridge and BKC convertible Burger King Corporation that pre-approves the preferred stocks to common stock, Cambridge would Company for continued growth through both Concurrent with the transaction, Carrols refinanced all hold an approximate 24 percent equity interest in the acquisitions and new restaurant development. Under of Carrols and Cambridge’s indebtedness and entered Company. There was no cash consideration as part of the terms of the agreement, Carrols’ right of first into a $550 million secured senior credit facility which the transaction. In conjunction with the merger, Alex refusal assigned to it by BKC has been expanded to includes a $425 million Term Loan B facility due 2026 Sloane and Matt Perelman, the Co-Founders of allow for the acquisition of 500 additional Burger King that bears interest at LIBOR + 3.25 percent and was Cambridge, have joined the Carrols Board of Directors. restaurants. Carrols has also assumed Cambridge’s issued at an OID of 99.5. Use of proceeds included (i) existing Popeyes Development Agreement and its refinancing Carrols’ existing 8 percent notes, (ii) paying “Matt and I are excited to join the Carrols Board and ROFR for Popeyes restaurant acquisitions in Tennessee off Cambridge’s indebtedness, and (iii) paying certain support the next phase of the Company’s growth. We and Kentucky. As part of these agreements, Carrols has fees and expenses related to the financing and the believe that Carrols’ strong management team, agreed to develop 200 new Burger King and 70 Cambridge transaction. The secured senior credit efficient financing structure, partnership with RBI and Popeyes restaurants over the next six years, and to facility also included a $125 million, undrawn five-year compelling capital allocation plan provide for a long remodel or upgrade a number of its Burger King revolving credit facility that will be used to execute runway to enhance shareholder value,” says Alex restaurants (or restaurants to be acquired) to the Carrols’ growth initiatives as needed. Sloane, co-founder of Cambridge Franchise Holdings. Burger King of Tomorrow image over the same period. Total consideration to Cambridge included (i) Carrols believes these development agreements approximately 7.36 million shares of Carrols common provide it with a significant expansion runway for both stock (a 16.6 percent equity interest) and (ii) shares of brands. Burger King – Shelbyville, KY 7 Surrounding Area

Burger King – Shelbyville, KY 8 Property Photo

Subject Property

Burger King – Shelbyville, KY 9 Property Photo

Subject Property

Burger King – Shelbyville, KY 10 Surrounding Area Photos

Burger King – Shelbyville, KY 11 Location Overview

The subject property located along Mortown Way, is just off Taylorsville Road which boasts average daily traffic counts exceeding 20,800 ADTC: 20,800 vehicles. Intersecting with Taylorsville Road is Interstate-64, which brings an additional 55,110 vehicles into the immediate area on average daily. There are more than 26,690 individuals residing within a five-mile radius of the property and more than 49,270 individuals within a ten-mile radius.

Shelbyville, a home rule-class city in and the county seat of Shelby County, is situated just 29 miles east of Louisville. Louisville the largest city in the Commonwealth of Kentucky, and, along with Lexington, is ADTC: 55,110 designated as a first-class city. Louisville is known as the home of legendary boxer Muhammad Ali, the Kentucky Derby, and three of the state’s six Fortune 500 companies. The city’s main airport also serves as the site of the UPS’s worldwide air hub. Louisville is a significant center of manufacturing, with two major Ford plants, and the headquarters and major home appliance factory of GE Appliances (a subsidiary of Haier). The city is also a major center of the American whiskey industry, with about one-third of all bourbon coming from Louisville. In addition to the presence of the Worldport global air-freight hub for UPS at Louisville International Airport, Louisville is situated at the crossroads of three major interstates (I-64, I-65, and I-71), and is home to the seventh largest inland port, which contributes to the city being one of the key locations in the American and global shipping industry. Burger King – Shelbyville, KY 12 Regional Map Property Address: 100 Mortown Way - Shelbyville, KY

KENTUCKY

Burger King – Shelbyville, KY 13 Demographics Property Address: 100 Mortown Way - Shelbyville, KY 3 Miles 5 Miles 10 Miles Population Trends: 2024 Projection 14,920 28,836 52,856 2019 Estimate 13,810 26,698 49,269 2010 Census 11,672 22,611 43,180 Growth 2017 - 2024 8.04% 8.01% 7.28% 10 Miles Growth 2010 - 2019 18.32% 18.08% 14.10% 2017 Population Hispanic Origin 2,876 3,976 4,635 Population by Race (2019): 5 Miles White 11,094 22,431 43,557 Black 1,886 2,870 3,661 3 Miles American Indian & Alaskan 125 182 256 Asian 200 398 639 Hawaiian & Pacific Island 48 80 103 Other 457 736 1,054 Household Trends: 2024 Projection 5,571 10,672 19,195 2019 Estimate 5,144 9,858 17,856 2010 Census 4,327 8,317 15,601 Growth 2019 - 2024 8.30% 8.26% 7.50% Growth 2010 - 2019 18.88% 18.53% 14.45% Owner Occupied 2503 5,768 12,810 Renter Occupied 2,641 4,090 5,045 Average Household Income (2019): $59,053 $71,885 $85,687 Households by Household Income (2019): <$25,000 1,504 2,222 3,070 $25,000 - $50,000 1,493 2,479 3,535 $50,000 - $75,000 738 1,564 3,134 $75,000 - $100,000 703 1,658 3,200

Burger King – Shelbyville, KY 14 Market Overview City: Shelbyville | County: Shelby | State: Kentucky Louisville is the largest city in the Commonwealth of Kentucky and the Louisville, KY 29th most-populous city in the United States. It is one of two cities in Kentucky designated as first-class, the other being Lexington, the state's second-largest city. The Louisville-Jefferson County, KY-IN Metropolitan Statistical Area (MSA), sometimes also referred to as Kentuckiana, includes Louisville-Jefferson County and 12 surrounding counties, seven in Kentucky and five in Southern Indiana. As of 2017, the MSA had a population of 1,293,953 , ranking 45th nationally. The city boasts the largest concentration of aging care headquarters in the nation as well as headquarters of some of the world’s largest restaurant operations. With a focus on IT support and coding, many of Louisville’s companies are rapidly growing. The city continues to lead the way in its long- standing strengths in advanced manufacturing and logistics. any cities tout growth and achievement, but Louisville has numbers to back it up: Since 2014, the city has experienced more than $11 billion in investment in infrastructure, project development and distilleries, including a $300 million Omni Hotel and a $200 million expansion of the downtown convention center. Louisville has been chosen as a Google Fiber City and Forbes just recognized Louisville as the number one city in the U.S. for manufacturing. Major Employers Employer Estimated # of Employees Efs Transportation Svcs Inc 2,000 Brother Industries USA Inc 1,200 Institutional Packaging Recycl 1,200 Impact Logistics Inc 850 Enviro Usa Inc 560 Methodist Le Bnheur Healthcare 517 D&S Residential Community Svcs 500 Cheesecake Factory 367 UHS 327 Lakeside Bhvioral Hlth Sys LLC 325 Lowes 300 Walmart 300

Burger King – Shelbyville, KY 15 EXCLUSIVE NET LEASE OFFERING

KY BROKER OF RECORD: Aaron Johnson Marcus & Millichap 9300 Shelbyville Road, Suite 1012 Louisville, KY 40222 100 Mortown Way - Shelbyville, KY 40065 Tel: 513-878-7733 License: 204560