Good Times Restaurants has announced they have entered into a franchise agreement with Taco John’s International for the development of a co-branded test store by Taco John’s in Cheyenne, Wyoming.

Taco John’s will be a franchisee of Good Times and will incorporate the two concepts into the test store, which will be a complete remodel of an existing Taco John’s that has been operating for 24 years.

The Company reported that Taco John’s engaged Kathy Diamond of Kathy Diamond Design Associates and Juerg Schmid of Juerg Schmid Design Consultants to create a unique, dynamic interior and exterior design that reflects the brand positioning of the two concepts and that clearly communicates prototype elements of the two concepts under one roof.

Commenting on the test, Boyd Hoback, President and CEO of Good Times, said: “We are excited about the prospects of matching two concepts that are developing similar brand positions based on high quality, fresh, authentic, high taste profile products within two very distinct segments of the quick service restaurant category — burgers and frozen custard and Mexican food. This test is a way for us to validate the opportunity outside of Good Times’ core market and gauge the potential for significant expansion with what could be a very compelling growth vehicle, both in terms of its consumer appeal and the unit level return on investment. We believe that co-branding will only work if it is truly an integration of two brands that the consumer believes fit together and that does not compromise either brand’s core product or service image. The Taco John’s team has been approaching the project in a first class way and we will be working together to refine the menu, design and operations to maximize its potential.”

Paul Fisherkeller, President and CEO of Taco John’s, said: “Taco John’s is exploring dual branding in an effort to accelerate expansion plans in markets contiguous to our core operating territory. We believe the Good Times brand to be very complementary to Taco John’s from the aspects of both brand positioning and operations. We think that providing consumers with more choices under one roof will be very positive. Taco John’s will open approximately 25 new locations in 2004 — two or three will be dual branded. If dual brand testing is successful this year, it could play a significant role in Taco John’s 2005 development and expansion.”

Good Times Burgers & Frozen Custard has 37 restaurants, mostly in Colorado. Taco John’s has more than 400 restaurants in 27 states, mostly throughout the Midwest.

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