Famous Bands and IDC Sign R25.5m Franchisee Financing Agreement

Famous Bands and IDC Sign R25.5m Franchisee Financing Agreement                 
FAMOUS BRANDS LIMITED                                                           
(Incorporated in the Republic of South Africa)                                  
(Registration number 1969/004875/06)                                            
Share code: FBR & ISIN code: ZAE000053328                                       
("Famous Brands" or "the company")                                              
VOLUNTARY ANNOUNCEMENT - FAMOUS BRANDS AND IDC SIGN R25.5m FRANCHISEE           
FINANCING AGREEMENT                                                             
The Industrial Development Corporation of South Africa (IDC) has undertaken     
to provide a wholesale loan facility of R25.5 million to potential              
franchisees of Famous Brands for the establishment of Wimpy, Steers,            
Debonairs Pizza and FishAways franchised stores under their Pro SME Job         
Scheme.                                                                         
Loans ranging from R500 000 up to a maximum of R1.5 million will be granted     
to approved candidates. Loan funding is for furniture, fittings, equipment      
and working capital. The repayment terms are extremely favourable.              
Prospective candidates will be pre-screened by the group via the company`s      
standard franchisee selection process, whereafter final selection will be       
made by the IDC. Consequently, Famous Brands is not liable to stand surety      
for the loans approved to franchisees by the IDC.                               
Kevin Hedderwick, Chief Operating Officer of Famous Brands says: "The           
facility we have put in place underpins our Enterprise Development goal         
whereby we intend to make our brands more easily accessible to franchisees      
of colour. Currently comprising 15% of our franchise network - the short        
term goal is to increase that representation to 20%. This joint initiative      
with the IDC will go a long way towards providing previously disadvantaged      
candidates with access to a premium brand," he adds.                            
Katinka Schumann-Bester, IDC Executive Vice-President for Services, says:       
"We view the facility as an intervention from us to ease the entry into the     
franchising sector by black SMEs. We are committed to partner with Famous       
Brands to advance entrepreneurial development and extend their network in       
the townships. The facility is part of our Leadership in Development            
strategy to create jobs through our funding. Significantly, the loan            
facility will be supported by a mentorship programme, managed by the group,     
to enhance the success of new franchisees."                                     
Hedderwick concludes: "The IDC`s preparedness in making this loan facility      
available is evidence of their comfort in our processes and brands - the        
strength of our franchise system, the aspirational value of our brands and      
the appeal they hold for potential franchisees."                                
The franchise industry has been identified by government as an important        
growth area in supporting its strategy to establish a sustainable small         
business sector in South Africa.                                                
Midrand                                                                         
11 December 2006                                                                
Sponsor                                                                         
Java Capital (Proprietary) Limited                                              
Date: 11/12/2006 10:00:03 Supplied by www.sharenet.co.za                     
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