I worked at a Subway while in high school, and I agree the smell is not very inviting. Even the dough, once thawed, has a strange odor to it, though the biggest cause of that funky odor you smell is the bread proofer located beneath the oven. It circulates warm moist air around the bread to help it rise. The thing is, it's not cleaned regularly (at least it wasn't at three different stores I worked in), and when left unchecked mold forms on the bottom.
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