3SOF

This has big time long-term potential fundamentally. 

Technically, its about ready for this board again.

Now 90 % owners * 73 units sold and 6% revenue 1.5 % Advertising, etc. Franchise Fee forever.  And the investors finance all expenses. Cash cow.

Should immediately place the valuation much higher than 40%.

Cash cow.   

It will be interesting to see what they can do with the Comstock Jake franchise also.

I'm in long at .0311.

Comstock Jakes is a niche concept.
Interesting to read about it.
The packets I have are very professional.
Opening in weeks.  And imagine if they sell as many franchises.

That's what it takes, something unique.  Considering how well they are selling the Kokopelli's franchise, I would expect them to try to get Jake's out to the same extent.  It's still way to early to know how popular either restaurant will be though.  Time will tell although they obviously feel good about the Kokopelli franchise buying up to 90%.

Will be interesting the next few days.
Moves quickly with the low float.

Franchise Capital Corp. Employs Gary Reid as Director of Investor Relations
Business Wire - August 31, 2005 08:30

SCOTTSDALE, Ariz., Aug 31, 2005 (BUSINESS WIRE) -- Franchise Capital Corp. (OTCBB: FCCN) announced today they have asked Gary Reid to join the team as director of investor relations. Reid's primary duties will be to answer phone calls and e-mails from shareholders and to respond to their needs in a timely matter. In addition, his duties will include monitoring of the company's Web site and other related investor relation pages to ensure the information posted is current and correct.

Reid has more than 40 years of experience with public companies, in sales, marketing, and investor relations. He is well known and respected in the investment community and his many friends and associates will be a welcome addition to his team. Although his official start date will be Sept. 1, Gary will be taking calls immediately. The company is asking those shareholders who wish to use e-mail as a means to communicate to be patient as it will take several days to transfer the technical aspects from the former investor relations firm.

"I have known Gary for many years and when it comes to meeting the needs of shareholders Gary is the best when it comes to investor relations," stated Edward C. Heisler, Franchise Capital Corp. president and CEO. He continued by saying, "Shareholder satisfaction is very important to me, and Franchise Capital needs an individual like Gary for investor relations. What I love best about Gary is there is no 'B.S.' with him. If he does not know the answer to a question he will tell you he does not know and then he will take the time to find out the answer to your question. I encourage shareholders to give Gary a call or send him an e-mail and as always I am available to take your calls as well."

About Franchise Capital Corp.

Franchise Capital Corp. is a business development company pursuant to Section 54 of the Investment Company Act of 1940. The company currently has five operating, synergistic investments holdings: Kokopelli's Mexican Grill Franchise Co., LLC; Cousin Vinnie's Franchise Co., LLC; Kirby Foo's Asian Grill Franchise Co., LLC; Comstock Jake's Franchise Co., LLC; and Fathom Business Systems Inc., all of which are engaged in business related to restaurant franchise development.

Safe Harbor Statement: The statements in this release that relate to future plans, expectations, events, performance, and the like are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Actual results or events could differ materially from those described in the forward-looking statements due to a variety of factors, including those set forth in the company's report on Form 10-KSB for fiscal year 2004 filed with the Securities and Exchange Commission.

SOURCE: Franchise Capital Corp.

Franchise Capital Corp., Scottsdale
Gary Reid, 866-475-7539

Copyright Business Wire 2005

Nice move after shaking out some hands.

Think about the new valuation.

First time I've talked about FCCN was in July, I've bought it @ $0.015.
My reasons to buy that stock were:
- Nice fundamental story with good speculative potential
- Low Float / Low Market Cap
- Breakout with volume creating a nice technical setup

After that, FCCN had a very volatile behaviour on the way up, with big deeps in the middle, FCCN reached $0.080 1 month later, starting a big drop since then.
I've sold part of my position near $0.060, and sold my last shares @ $0.035, to lock my biggest gain this year.

Fundamentals didn't changed much, and FCCN is trading in the low 0.20's... why ?
I believe just because the move to $0.080 was too quick, and a lot of short term speculators entered the stock, so this peaceful trading vehicle where nothing happened before suddenly was full of new traders and nervous holders.

FCCN dropped more than 70%, volume decreased a lot, showing that activity is almost vanished from the stock. Technically, the $0.020 looks like a steady support level, and FCC seems to be building a base over here. I'm not expecting FCCN to get back to the starting ground ($0.010/$0.015).

Unless I'm missing something here, I'd say that FCCN is now a golden mid-term opportunity, and the low $0.020's a good accumulation zone.
I've started to buy my old position back, already got 1/4 @ $0.023

Frederick,

Interesting that you should mention FCCN.

I have been on the phone with Frank, Ed, Gary (new IR person) and the LLC that purchased the rights to Ohio.

They have apparently sold the rights to 73 locations.  Investors must commit to 5 at a time.  My concern was quality in expanding nationwide.  In other words, if one store deviates from the others and hurts the entire franchise.  Seems they have a tight watch on the locations.  They now have 2 in Arizona.  The debate now is the name.  To be Kokopelli (Sonoran or Mexican-Grille).  The Ohio LLC wants Mexican.  As of now in AZ, one is Mexican and the other Sonoran Grille.  Other than that, the Ohio President of the LLC said that he already went to training in Arizona.  He said it was very professional and the food quality exceptional.  Ohio will open before the end of the year.

I have been accumulating all week.  Gary and management said to expect a positive filing the 28th of this month.  They also said to expect some other positive developments in accordance with the filing.  This came after I asked specifically about the insiders buying at this time.  They feel the price is at a low, but you never know.  I am accumulating here due to the fact that it has held this level.  And we know how it can run on the low float.

The most recent news about FCCN 90% ownership increases all of the valuation levels.  I feel great about buying here in anticipation of the filing and potential PR following the filing.  They said to expect some positive developments with the filing.  Worth paying to see.

Quote from: fill_the_gap on September 16, 2005, 02:26:06 PM
Frederick,

Interesting that you should mention FCCN.

I have been on the phone with Frank, Ed, Gary (new IR person) and the LLC that purchased the rights to Ohio.

They have apparently sold the rights to 73 locations.  Investors must commit to 5 at a time.  My concern was quality in expanding nationwide.  In other words, if one store deviates from the others and hurts the entire franchise.  Seems they have a tight watch on the locations.  They now have 2 in Arizona.  The debate now is the name.  To be Kokopelli (Sonoran or Mexican-Grille).  The Ohio LLC wants Mexican.  As of now in AZ, one is Mexican and the other Sonoran Grille.  Other than that, the Ohio President of the LLC said that he already went to training in Arizona.  He said it was very professional and the food quality exceptional.  Ohio will open before the end of the year.

I have been accumulating all week.  Gary and management said to expect a positive filing the 28th of this month.  They also said to expect some other positive developments in accordance with the filing.  This came after I asked specifically about the insiders buying at this time.  They feel the price is at a low, but you never know.  I am accumulating here due to the fact that it has held this level.  And we know how it can run on the low float.

The most recent news about FCCN 90% ownership increases all of the valuation levels.  I feel great about buying here in anticipation of the filing and potential PR following the filing.  They said to expect some positive developments with the filing.  Worth paying to see.

fill_the_gap,

can i quote this and put on other boards?  might give more exposure to fccn. 

Quote from: fill_the_gap on September 16, 2005, 02:26:06 PM
Frederick,

Interesting that you should mention FCCN.

I have been on the phone with Frank, Ed, Gary (new IR person) and the LLC that purchased the rights to Ohio.

They have apparently sold the rights to 73 locations.  Investors must commit to 5 at a time.  My concern was quality in expanding nationwide.  In other words, if one store deviates from the others and hurts the entire franchise.  Seems they have a tight watch on the locations.  They now have 2 in Arizona.  The debate now is the name.  To be Kokopelli (Sonoran or Mexican-Grille).  The Ohio LLC wants Mexican.  As of now in AZ, one is Mexican and the other Sonoran Grille.  Other than that, the Ohio President of the LLC said that he already went to training in Arizona.  He said it was very professional and the food quality exceptional.  Ohio will open before the end of the year.

I have been accumulating all week.  Gary and management said to expect a positive filing the 28th of this month.  They also said to expect some other positive developments in accordance with the filing.  This came after I asked specifically about the insiders buying at this time.  They feel the price is at a low, but you never know.  I am accumulating here due to the fact that it has held this level.  And we know how it can run on the low float.

The most recent news about FCCN 90% ownership increases all of the valuation levels.  I feel great about buying here in anticipation of the filing and potential PR following the filing.  They said to expect some positive developments with the filing.  Worth paying to see.

Great input fill_the_gap
I must applaud you for all this DD you are making.

I'm looking forward to 28th September... But mainly I'm here for the long run.

Yes, [applaud] FTG.  I've been looking for a re-entry point on FCCN.  I'll nibble here with you guys....

FCCN was heading to much lower levels if it wasn't for Rambsburg's post today.  If you notice the volume had dried up.  I would be very cautious about getting back into FCCN.

Here are some of the reasons I sold FCCN:

1) I was very dissapointed by the news that came out on Friday August 19th.  FCCN sold its interest in Fit-n-Healthy Market Cafe to CEAT and apparently they both have the same CEO or at one point they did. It was sold for $50,000.

The CEO of CEAT was quoted saying: "I feel Creative Eateries has just acquired an innovative concept in the health food industry," stated Frank Holdraker, president and CEO of Creative Eateries Corp. He continued by saying, "Our goal is to have the first Fit-n-Healthy Market Cafe open in the second quarter of 2006 and over 20 units sold within the year following. Each unit is estimated to generate $850,000 in annual revenue."

So why would FCCN sell a concept that is estimated to generate $850,000 in annual revenue for EACH UNIT to CEAT for $50,000? This is the main reason that I sold. It seems like something very corrupt might have happened here.

2) If they sold Fit-n-Healthy Market Cafe to CEAT then they can easily turn around and sell Kokopelli's to CEAT for $50,000 too.  As a matter of fact, there is nothing really that can keep them from moving all of their assets to CEAT. 

3) The authorized shares is 5 billion  and they will probably be using all of it.

4) I was told FCCN is a Business Development Company but never got an explanation as to what it means.  When I questioned Andrew in IR about the float, he said they are allowed to raise 5 million dollars a quarter by selling shares without announcing it because they are a Business Development Company. Therefore, they can use up the 5 billion shares authorized easily. Outstanding shares 2-11-05 was 5.34 million...outstanding shares 4-07-05 was 18.927 million....and now according to the CEO it is 60 million and heading to 100 million.  As one poster on another website said "hmmm...no shortage of shares here and someone's making some $$$$...OS up 1100% in last 6 months....makes me wonder.... "   Andrew in IR thought it might be a lot more than 100 million shares just based on the volume alone.  The CEO told me that it is being shorted and because of the naked shorts out there is no way of really knowing the exact amount of shares in the float.

If they have raised 5 million dollars a quarter  then where did all the money go?

5) Ed Heisler (the CEO) owns only 253,709 shares. Why do you want to own more? 
http://finance.yahoo.com/q/it?s=FCCN.OB

That said, I would trade very cautiously.  There are a lot of people on raging bull who own FCCN and are looking for an opportunity to get out. One poster says, "I haven't seen one post thanking Ramsburg for the Cramer like bounce. Thanks from me Ramsburg, we needed that to hold us over."  And you know why he is thanking Ramsburg because it was heading to zero.  IMO.

 

Hi Shootingstar,

To be honest with you, I believe you are being too pessimistic about FCCN, and making a lot of premature assumptions and calculations. I don't think it's a scam.
Where did you get the information of authorised shares being 5 billion? And outstanding being 60M right now ?

About ragingbull.com, I don't follow that website like most big message boards like yahoo, etc. Concerning the pennies, most of the boards are just a big fight between pumpers and bashers.
I talk about a lot of pennies everyday, and most of the times I see no upside effect on them after I post any bullish comment, that's not my goal when I talk about pennies... so if people are blaming the big up-move on me, I can't agree with that, I'm not a pumper.
If you take a look to Level2 before I just posted the message, there were a lot of buyers @ 20, if stock just jumped so fast, its only because people don't want to sell at these levels, volume has been very low, which is bullish in my opinion.

Of course its always a risk to buy a small cap / float OTCBB like FCCN, but that's other story.

Regards,

Rambsburg,

The authorized shares is 5 billion.  I am sure you can confirm this by calling IR, the company or by looking at the SEC fillings.  I got this information from investor relations and the CEO when I called but feel free to do your own dd.  The outstanding shares is over 60 million right now and again you can confirm this by calling the company.

Here are the questions and answers I got from the CEO at the time.  I faxed and emailed the questions but I did not get a response so I sold my shares.   I guess the CEO is busy reading the raging bull because only after I posted a message on Raging Bull that I had sold my shares did he respond to my email.

My email: My Questions and answers from the CEO:

Dear Mr. Edward Heisler,

I have some questions about FCCN.

1) Since we last spoke I found out on the FCCN message board at Raging Bull that there are 5 CD's and 3 of the 5 have been retired. Can you please explain to me exactly what these CD's are, and when are the remaining 2 going to expire?

answer: "CD's" are convertible debentures. Three have been converted through the issuance of shares. The four one was released with "Fit-n-Healthy." The company is now only left with one.

2) On the message board I read that the new float is now 60 million and yet when I spoke to you I thought you said it is around 100 million. Is it 60 million or is it a 100 million? I think 100 million shares on the market is too much.

answer: The float is currently around 57 million. The outstanding is currently around 60 million. It is my goal to keep the outstanding under a 100 million.

3) The last time we spoke I asked you if management owned shares in the company and you said no but I have some. Can you please clarify on this. I am a little surprised that management doesn't own any shares. It tells me that management doesn't have enough confidence to invest their money in a company they have started and running.

answer: Management does own shares. I believe your question was if management has been buying shares, which is no. Although, it does not mean we won't.

4) The last time we spoke you said FCCN is a 50% owner of kokopelli's and you said FCCN gets 50% of the $60,000 franchise fee and later when I questioned you more I found out that that is not the case. So I feel I am still in the dark as far as to how much is the actual money you end up keeping from selling a franchise? How does your firm make money?

answer: Let me be clear. Franchise Capital Corporation is a Business Development Company (BDC) under the securities laws of 1940. We do not sell a product or service. We invest in separate portfolio companies. Our value is based on the value of the portfolio company. As an example, Franchise Capital is 50% invested in Kokopelli Franchise Company, LLC. When a Kokopelli's restaurant is sold there is an initial franchise fee on $25,000. The franchise fee is split between American Restaurant Development Company and Kokopelli Franchise Company. After the store is open it is estimated that it will generate around $60,000 per year in franchise royalty fees for Kokopelli Franchise Company, LLC. The more revenues Kokopelli Franchise Company, LLC receives, the more value for Franchise Capital.

5) The last time we spoke you referred me to the FCCN chart and you said people are holding on to their stocks and they are not selling based on the volume. Well, I added up the volume for both the up days and the down days and it is quiet clear that just as many shares have been sold. Maybe the shares that have been sold are the shares your firm has sold via the CD's and now the remaining share holders or bag holders are people like me. When did you start selling these CD's on the market?

answer: I find it hard to believe that the volume has been equal on the up days as compared to the down days since July 6th. Although, it is possible. Regarding FCCN selling CD's, we can not sell our own stock. Debenture conversions started at the beginning of the year when the company became a BDC.

6) There are errors on your website, both you and Mr. Frank Holdraker were listed as the CEO has this been fixed?

answer: I did not know. I will look into it.

7) Why was Mr. Frank Holdraker listed as the CEO of Franchise Capital Corp. on FCCN's website?

answer: I did not know. I will look into it.

How many employees do you have and what is their salary and how are they being compensated?

answer: It will be listed in the upcoming 10K

9) What is your salary and how are you being compensated?
answer: It will be listed in the upcoming 10K

10) How many actual restaurants have opened up to date? And what are the plans for the remainder of the year? Since we are talking only another 4 1/2 months you must have that info.

answer: Kokopelli has two open in the Phoenix with possibly another to open in Toledo before the end of the year. Comstock Jake's will open its first location in November.

11) What is FCCN's relationship with CEAT?

answer: We share office space and some personal. Other then that, it is a separate company.


12) What is FCCN's relationship with Mr. Holdraker?

answer: He is president of several of the portfolio companies that FCCN is invested into