3SOF

Franchise Capital Corporation Sells its Interest in Fathom Business Systems
Sep 30, 2005 9:15:00 AM
Copyright Business Wire 2005
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Sept. 30, 2005--

Franchise Capital Corporation (OTCBB:FCCN) announced today that its Board of Directors, with the recommendation of the Investment Committee, voted to sell its interest in Fathom Business Systems, Inc. Fathom Business Systems is a licensed dealer of Point of Sale (POS) systems which was originally purchased in late 2003.

In a Board of Directors meeting held on Tuesday September 27, 2005, the Audit Committee recognized Fathom's continual losses and the negative effect to Franchise Capital Corporation's financials. The Board voted unanimously for the sale.

Franchise Capital Corporation President & CEO Edward C. Heisler stated, "This is a very wise decision the Company has made. Fathom has not been profitable and continues to be an expense to the Company. Removing Fathom from our portfolio companies will help us to improve the Company's bottom line."

With news coming next week, I like the developments thus far.

Get rid of the debt.  FCCN is a cash cow moving forward.
1-2 locations opening per month at the sole expense of the Franchisee.

Build a base and let's move forward.   

Adding here for the string of news next week.

Very pleased about the developments.  And taking the shares from 5 Billion to 200 million was a solid news for investors that was certainly unexpected.  More to come.   

Why is this good news??? FFCN will be left with 200K cash and Stock/Shares in the Third PArty which could be a private or a public entity! Not to forget the outstanding debt of $200k or so. I am lost as to why next week will be a great week!!!!

I'm out to save a small profit...didn't like the PPS/low volume reaction to the filing...my enthusiasm about short term rise is waning...but I'm just looking short term...and still watching for possible reentry. 

You need to realize that a BDC valuation is based on the subsidiary value.
KoKopelli's is ready to begin opening along with Comstock Jake's.  73 locations of KoKopelli's sold.  The balance sheet will improve exponentially.  Show me a penny with locations that are open and 73 are sold.  FCCN does not have to pay for the locations to open.  All just my opinion.  Gary and Ed keep saying the news next week will be great.  Willing to give them the benefit.  What caused the ride to 7 cents last time ? 

They now have 40% more ownership, more are sold, fewer Outstanding shares and selling more locations. 

Quote from: fill_the_gap on September 30, 2005, 02:24:39 PM
You need to realize that a BDC valuation is based on the subsidiary value.
KoKopelli's is ready to begin opening along with Comstock Jake's.  73 locations of KoKopelli's sold.  The balance sheet will improve exponentially.  Show me a penny with locations that are open and 73 are sold.  FCCN does not have to pay for the locations to open.  All just my opinion.  Gary and Ed keep saying the news next week will be great.  Willing to give them the benefit.  What caused the ride to 7 cents last time ? 

They now have 40% more ownership, more are sold, fewer Outstanding shares and selling more locations. 

Fill the Gap.... here is a sentence from their latest 10K;
"
Subsequent to June 30, 2005, the Company entered into an agreement with a third party where it intends to sell all of its remaining portfolio companies for $200,000 cash and stock in the third party.
"
My understanding of the above is that they are selling everything including Kokopellis!!

if they sell of their portfolio companies and most probably will acquire a stake in the acquirer's company, then what will be the value of CCN which will have 200K cash and about 200K debt? The value of the third party is unknown at this time!

As the PR Says, Monday should bring a PR about the new Restaurants.
Management waiting for the New Fiscal Year , October.

Hi !



Good luck.
Evgeny.

They are not selling KoKopelli's without increasing value after taking a 90% stake in them a few weeks ago.  And the company would not reduce shares and issue press saying positive announcements are coming in a matter of days.  Besides, I have spoken with management several times.  They have no reason to lie about anything. 

The company does not have many shares.  So why would they pump it up ?  Call them and you will feel better.  Tuesday may be the day according to Gary and Ed.  And Ed hinted in the e-mails about not being able to buy shares before positive news.  And if the company were sold, then it would be favorable to shareholders.  If not, management would be in serious trouble.  These people are alot smarter than they are being given credit for. 

Trade the plan.  The news has not arrived yet.
And the news about reducing shares from 5 Billion to 200 million was a bonus to the plan.

You know where the chart has been.

I am not pumping the stock, so do what makes you feel comfortable.  The buyers willl arrive if the news is positive regardless of a message board.   

Copied from a RB poster.

By: mbw1al1 
03 Oct 2005, 10:13 AM EDT
Msg. 7081 of 7093
Jump to msg. #   
Since someone else said they talked to Gary this morning, I decided to do so, as well. Gary was very positive that the outcome of all this would be very positive to the shareholders of FCCN. I indicated my feelings that I thought the buyer was FCCN, but would not ask him. He did not state otherwise, but assured me that everyone was excited about what's happening and that it would be positive. He indicated an eventual goal of being a holding company on a bigger exchange. He mentioned this Friday, as well. I asked him if the plan to move to a bigger exchange included a reverse split. He said as far as he knew that was not a part of the plan. He did not think that would happen. I asked about CEAT and their apparent lack of assets worthy of their present market cap. To paraphrase, he basically said that CEAT had some things going on that would reflect more value. I got the impression that with the block of shares we receive that we will immediately see a mathematical increase of several times what we are now in terms of value.

0.028 -0.006 would you say this is a mm shake?  don't have much on it, so maybe let it ride.  hope fill_in_the_gap is right.  Have a great position in this?

  Looks bad on not that much volume...if it breaks .02, it could get worse...unless some news turns it around...then it might be a great buy here...hmmm...just watching for now. 

May have to start a FCCN sympathy club.

Franchise Capital Corp. Appoints Bob McCoy to the Board of Directors
Oct 3, 2005 4:12:00 PM
Copyright Business Wire 2005
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Oct. 3, 2005--

Franchise Capital Corp. (OTCBB: FCCN) announced today that on Tuesday, Sept. 27, the board of directors appointed Bob McCoy to the board of directors to replace Alan Smith whose resignation was accepted at the same meeting. McCoy will also serve as a member of the audit and investment committees.

McCoy is an experienced senior executive. As president of Marquis Elevator Inc. from 1975 to 1990, he built and then later sold the largest independent elevator company in Nevada. Subsequent to selling Marquis Elevator, McCoy was the general manager of Canyon Investments Inc. in Las Vegas from 1990 to 1996. Since 1996, McCoy has served as facilities manager for the Church of Jesus Christ of Latter-day Saints, responsible for 487,000 square feet of facilities in the Las Vegas area. McCoy is a graduate of the University of Tennessee.

"It is a privilege to have Mr. McCoy on our board. His experience is a great addition to our team," stated Edward C. Heisler, Franchise Capital Corp. president and CEO. He continued by saying, "I would also like to thank Mr. Alan Smith for his service. We all wish him well and are very grateful for his years with the company."

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; and Comstock Jake's Franchise Co., LLC, 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.

  Maybe I'm wrong, but I don't think news of a new appointee will make this stock run, unless it's someone like Warren Buffet.