AFC Enterprises, Inc., franchisor and operator of Popeyes® Chicken & Biscuits, Church’s Chicken™, Cinnabon® and the franchisor of Seattle’s Best Coffee® in Hawaii, on military bases and internationally, today announced that the Company has signed a definitive agreement to sell its Cinnabon subsidiary to Focus Brands Inc., an affiliate of Roark Capital Group, for $30.25 million in
cash. Atlanta-based Roark Capital Group is a private equity firm that has
acquired majority stakes in franchised consumer brands such as Carvel®,
Fast Signs® and Money Mailer®. The pending transaction, which is subject to
customary conditions, is expected to close in the fourth quarter of 2004.
Bear, Stearns & Co. Inc. served as the financial advisor to AFC Enterprises
in this transaction.

As previously announced on April 20, 2004, AFC began an exploration of
strategic alternatives for Cinnabon, including a possible sale, as part of
the company’s effort to sharpen its strategic focus and maximize
shareholder value. The agreement includes the sale of the international
franchise rights for Seattle’s Best Coffee in eleven countries, Hawaii and
U.S. military bases, which are all of the operations of Seattle’s Best
Coffee that AFC retained following the sale of Seattle’s Best Coffee to
Starbucks Corporation in July 2003.

“The announcement today represents continued progress
in AFC’s ongoing effort to optimize our portfolio and to restructure our
corporate center,” says Frank Belatti, chairman and CEO of AFC
Enterprises. “We commend the Cinnabon team for their diligent efforts
in building a well-known global brand.”
Further terms of the agreement were not disclosed.

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