ATLANTA, June 19, 2002 (PRIMEZONE) -- Church's Chicken(TM), a division of AFC Enterprises, Inc. (Nasdaq:AFCE), has announced the completion of a deal with BAH Texas, LP (Best American Hospitality) to convert 57 company-operated restaurants in the Houston/Beaumont, Texas markets into franchise ownership. BAH Texas, LP is owned by Royal Capital Corp., an Atlanta-based holding company owned and operated by entrepreneur and business developer David Davoudpour. With this purchase, Royal Capital Corp. will operate 111 Church's restaurants, making it Church's largest franchisee.
This sale represents part of AFC Enterprises' ongoing business strategy of converting hundreds of its company-owned and operated units to franchise units, while retaining a smaller number of units which will serve as best-practice models for the entire system. It also represents the largest such conversion transaction since AFC began its re-franchising efforts last year. In addition, BAH Texas, LP has signed an agreement to build an additional 40 Church's restaurants, which will be added to its current holdings.
"We are delighted to provide one of our most successful franchise partners with another vehicle for growth," says Hala Moddelmog, president of Church's Chicken. "This deal is great for both Church's and Mr. Davoudpour and follows our franchise growth model by providing more opportunities for success for AFC franchise partners."
Davoudpour, president and CEO of Royal Capital Corp. and former steakhouse veteran, has been a part of the Church's family since 1996 when he entered into the quick service restaurant arena with the purchase of 47 California-based Church's units. Royal Capital Corp. accelerated performance in its California and Arizona markets and remained committed to growing with the Church's brand.
Last April, Davoudpour was recognized for his outstanding leadership in restaurant management and performance with the Franchise Partner of the Year Award, presented at Church's 2002 Global Leadership Conference in San Antonio.
About Church's Chicken
Church's Chicken, one of the world's largest quick-service chicken restaurant concepts, focuses on high quality food served at a value price, utilizing the new tagline Full Flavor, Full Pockets, Full Life(TM). Menu specialties include Southern-style chicken and side items such as corn on the cob, okra, mashed potatoes and gravy and signature Honey Butter biscuits. Church's Chicken has more than 1,500 locations worldwide driving system-wide sales of approximately $900 million in 2001. Visit Church's Chicken on the World Wide Web at www.churchs.com.
About AFC Enterprises
AFC Enterprises, Inc. (Nasdaq:AFCE) is the franchisor and operator of 3,896 restaurants, bakeries and cafes in the United States, Puerto Rico and 30 foreign countries under the brand names Church's Chicken(TM), Popeyes(R) Chicken & Biscuits, Cinnabon(R), Seattle's Best Coffee(R), and Torrefazione Italia(R) Coffee. AFC's primary objective is to be the world's Franchisor of Choice(R) by offering investment opportunities in highly recognizable brands and exceptional franchisee support systems and services. AFC Enterprises had system-wide sales of approximately $2.6 billion in 2001 and can be found on the World Wide Web at www.afce.com.
Forward-Looking Statement: Certain statements in this release, and other written or oral statements made by or on behalf of AFC or its brands, are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the cost and availability of our principal food products, labor shortages or increased labor costs, our ability to franchise new units and expand our brands, our and our franchisees' ability to successfully operate existing units and open new units, changes in consumer preferences and demographic trends, competition, general economic, political and regulatory conditions and the risk factors detailed in our Annual Report on Form 10-K for the year ended December 30, 2001 and the other documents we file with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements, since those statements speak only as of the date they are made.