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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 6, 1998
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FRISCH'S RESTAURANTS, INC.
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(Exact name of registrant as specified in its charter)
OHIO
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(State or other jurisdiction of incorporation or organization)
1-7323 31-0523213
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(Commission File Number) (I.R.S. Employer Identification No.)
2800 GILBERT AVENUE, CINCINNATI, OHIO 45206
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 513-961-2660
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Item 5. Other Events.
On January 6, 1998, Frisch's Restaurants, Inc. ("Frisch's"), an Ohio
corporation, and Golden Corral Franchising Systems, Inc. ("Golden Corral"), a
Delaware corporation, entered into an Area Development Agreement and an Addendum
thereto (collectively, the "Area Development Agreement"). Pursuant to the Area
Development Agreement, Frisch's obtained the development rights to establish and
operate twenty-three Golden Corral restaurants in certain markets in Ohio,
Indiana and Kentucky, each pursuant to a separate Franchise Agreement. The
development schedule calls for twenty-three restaurants to be opened over a
seven year period, with the first two to be opened in 1998. To secure the
development rights for the twenty-three restaurants, Frisch's paid Golden Corral
a development fee of $230,000 upon execution of the Area Development Agreement
($10,000 per restaurant). For each restaurant opened, Ten Thousand Dollars
($10,000) of the development fee will be credited toward the initial franchise
fee payable under each Franchise Agreement.
Malcolm M. Knapp, a Director and Co-Chairperson of the Strategic Planning
Committee of Frisch's, acts as a franchise broker for Golden Corral and will
receive a $5,000 commission upon the opening of each restaurant pursuant to the
Area Development Agreement.
The Press Release dated January 6, 1998 attached hereto as Exhibit 1 is hereby
incorporated herein by reference.
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SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FRISCH'S RESTAURANTS, INC.
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(registrant)
DATE January 12, 1998
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January 12, 1998
BY /s/ DONALD H. WALKER
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Donald H. Walker
Vice President - Finance and
Principal Financial Officer
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Exhibit 1
FOR IMMEDIATE RELEASE
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Cincinnati, Ohio. January 6, 1998
Frisch's Restaurants, Inc. and Golden Corral Franchising Systems, Inc.
announced today that they have signed an area development agreement whereby
Frisch's will open and operate twenty-three Golden Corral restaurants during the
next seven years in the Cincinnati, Dayton and Louisville markets. The agreement
calls for the first two restaurants to be opened in 1998.
Craig F. Maier, President and CEO of Frisch's said, "As part of our
strategic planning process, we have been looking for another restaurant concept
to complement our Big Boy family restaurants. We definitely believe that Golden
Corral is the answer. We look forward to working with the people at Golden
Corral. The markets which we have agreed to develop fit perfectly with our
existing Big Boy operations."
Theodore M. Fowler, Jr., President and CEO of Golden Corral Corporation
said, "Frisch's decision to invest over $45,000,000 during the next seven years
in the Golden Corral system is an important vote of confidence for our concept
and brand. We are extremely pleased to welcome Frisch's into our franchising
system. They have a proven record of success in operating restaurants and
hotels. We look forward to a long-term relationship with them."
Golden Corral, with headquarters in Raleigh, North Carolina, is the
leading restaurant chain in the grill-buffet segment of the restaurant industry,
ranking first in systemwide sales and market share according to the June, 1997
NATION'S RESTAURANT NEWS Top 100 survey. Golden Corral, whose menu features
steaks and a wide variety of buffet items, opened its first restaurant in 1973,
and currently operates and franchises a total of 455 restaurants located in 38
states.
Frisch's Restaurants, Inc. operates and licenses family restaurants
with drive-thru service under the name Frisch's Big Boy. These operations are
located in Ohio, Indiana, and Kentucky. Additionally, the Company operates two
Quality Hotels with restaurants in metropolitan Cincinnati, where it is
headquartered.
