This comes from an email from the American Family Association. I pulled up the information and confirmed that it is very clear that homeschoolers cannot participate.
Subway tells home schoolers: We will not allow you to participate in our contest.
Subway discriminates against home schoolers.
May 27, 2008
Subway, the sandwich restaurant, wants to hear your child's story – unless he or she is home schooled.
The national chain's "Every Sandwich Tells a Story Contest" offers prizes and a chance to be published on the Subway Web site and in Scholastic's "Parent & Child" magazine but specifically excludes home schoolers.
Subway will probably say they excluded home schools because of the main prize ($5,000 worth of athletic equipment to the winning child's school). But Subway could have given it to a local park, church or school of the winning home schooler's choice.
Subway's Web site promotion not only misspells "Untied (sic) States," but offers the grand prize winner a "Scholastic Gift Bastket (sic) for your home."
For more information, go to the American Family Association site.