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020629 Church's Franchisee Purchases 57 Restaurants

June 22, 2002

Atlanta, GA - Church's Chicken, a division of AFC Enterprises, Inc., 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.

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