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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-Q

[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended   September 30, 2003

OR

[ ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from
_______ to _______

Commission file number:   333-9371

CAPTEC FRANCHISE CAPITAL PARTNERS L.P. IV
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation or organization)

38-3304096
(IRS Employer Identification Number)

24 Frank Lloyd Wright Drive, Lobby L, 4th FloorP.O. Box 544, Ann Arbor, Michigan 48106-0544
(Address of principal executive offices, including zip code)

(734) 994-5505
(Issuers telephone number)

Not Applicable
(Former name, former address and former fiscal year, if changed since last year)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or such shorter period that the registrant
was required to file such reports), and (2) has been subject to filing
requirements for the past 90 days.   Yes X No

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by court: Not applicable

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuers classes of
common equity, as of the latest practicable date: Not applicable





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TABLE OF CONTENTS



|                                        |                                                                                               |                                                                                          |  |  |  |  |  | 
|--------------------------------------- | --------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------- |  |  |  |  |  | 
|PART I            FINANCIAL INFORMATION
|                                        | Item 1. Financial Statements:                                                                
|                                        |                                                                                               | Balance Sheets, September 30, 2003 and December 31, 2002                                
|                                        |                                                                                               | Statements of Operations for the three and nine months ended September 30, 2003 and 2002
|                                        |                                                                                               | Statement of Changes in Partners Capital for the nine months ended September 30, 2003  
|                                        |                                                                                               | Statement of Cash Flows for the nine months ended September 30, 2003 and 2002           
|                                        |                                                                                               | Notes to Financial Statements                                                           
|                                        | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|                                        | Item 3. Quantitative and Qualitative Disclosures about Market Risk                           
|                                        | Item 4. Controls and Procedures                                                              
|PART II OTHER INFORMATION              
|                                        | Other Information                                                                            
|SIGNATURES                             
|302 Certification of CEO & CFO         
|906 Certification of CEO & CFO         



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CAPTEC FRANCHISE CAPITAL PARTNERS L.P. IV

Index to Form 10-Q

Item No.
    
    
    
    PagePART I
    
    FINANCIAL INFORMATIONItem 1.
    
    Financial Statements:Balance Sheets, September 30, 2003 and December 31, 2002
    
    3Statements of Operations for the three and nine monthsended September 30, 2003 and 2002
    
    4Statement of Changes in Partners Capital for the nine monthsended September 30, 2003
    
    5Statement of Cash Flows for the nine monthsended September 30, 2003 and 2002
    
    6Notes to Financial Statements
    
    7-8Item 2.
    
    Managements Discussion and Analysis of Financial Conditionand Results of Operations
    
    9-12Item 3.
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    12Item 4.
    
    Controls and Procedures
    
    12-13PART II
    
    OTHER INFORMATIONOther Information
    
    13SIGNATURES
    
    
    
    14CERTIFICATION
    
    Pursuant to Section 302(a) and 906 of the Sarbanes-Oxley Act of 2002
    
    15-17


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CAPTEC FRANCHISE CAPITAL PARTNERS L.P. IV

PART I  FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Captec Franchise Capital Partners L.P. IV
Balance Sheets

September 30,
    
    
    December 31,2003
    
    
    2002(Unaudited)AssetsCash and cash equivalents
    
    $
    540,705
    
    
    $
    1,132,891Restricted cash
    
    
    259,361
    
    
    
    234,178Investment in leases:Operating leases, net
    
    
    29,687,113
    
    
    
    28,910,393Financing leases, net
    
    
    1,785,080
    
    
    
    2,591,336Impaired financing leases, net
    
    
    15,000
    
    
    
    15,000Accounts receivable
    
    
    303,784
    
    
    
    90,785Unbilled rent, net
    
    
    1,423,695
    
    
    
    1,261,886Deferred financing costs, net
    
    
    327,520
    
    
    
    375,711Total assets
    
    $
    34,342,258
    
    
    $
    34,612,180Liabilities and Partners CapitalLiabilities:Notes payable
    
    $
    15,035,386
    
    
    $
    14,374,899Accounts payable and accrued expenses
    
    
    120,746
    
    
    
    157,241Due to related parties
    
    
    19,307
    
    
    
    19,938Total liabilities
    
    
    15,175,439
    
    
    
    14,552,078Partners capital:Limited partners capital accounts
    
    
    19,185,099
    
    
    
    20,091,845General partners capital account
    
    
    (18,280
    )
    
    
    (31,743
    )Total partners capital
    
    
    19,166,819
    
    
    
    20,060,102Total liabilities and partners capital
    
    $
    34,342,258
    
    
    $
    34,612,180


The accompanying notes are an integral part of the financial statements.

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Captec Franchise Capital Partners L.P. IV
Statements of Operations
(Unaudited)

Three months ended
    
    
    Nine months endedSeptember 30,
    
    
    September 30,2003
    
    
    2002
    
    
    2003
    
    
    2002Operating revenue:Rental income
    
    $
    873,485
    
    
    $
    840,954
    
    
    $
    2,588,993
    
    
    $
    2,522,862Finance income
    
    
    47,143
    
    
    
    72,891
    
    
    
    157,606
    
    
    
    245,276Total operating revenue
    
    
    920,628
    
    
    
    913,845
    
    
    
    2,746,599
    
    
    
    2,768,138Operating costs and expenses:Interest expense
    
    
    319,898
    
    
    
    314,943
    
    
    
    955,031
    
    
    
    953,600Depreciation
    
    
    128,018
    
    
    
    122,243
    
    
    
    378,280
    
    
    
    367,733General and administrative
    
    
    45,411
    
    
    
    47,240
    
    
    
    111,643
    
    
    
    133,431Total operating costs and expenses
    
    
    493,327
    
    
    
    484,426
    
    
    
    1,444,954
    
    
    
    1,454,764Income from operations
    
    
    427,301
    
    
    
    429,419
    
    
    
    1,301,645
    
    
    
    1,313,374Other income:Interest and other income
    
    
    110
    
    
    
    453
    
    
    
    412
    
    
    
    1,443Gain on sale of equipment
    
    
    24,099
    
    
    
    
    
    
    
    44,215
    
    
    
    Total other income
    
    
    24,209
    
    
    
    453
    
    
    
    44,627
    
    
    
    1,443Net income
    
    
    451,510
    
    
    
    429,872
    
    
    
    1,346,272
    
    
    
    1,314,817Net income allocable to general partner
    
    
    4,515
    
    
    
    4,299
    
    
    
    13,463
    
    
    
    13,148Net income allocable to limited partners
    
    $
    446,995
    
    
    $
    425,573
    
    
    $
    1,332,809
    
    
    $
    1,301,669Net income per limited partnership unit
    
    $
    15.29
    
    
    $
    14.49
    
    
    $
    45.54
    
    
    $
    44.31Weighted average number of limited partnership
units outstanding
    
    
    29,232
    
    
    
    29,371
    
    
    
    29,268
    
    
    
    29,378


The accompanying notes are an integral part of the financial statements.

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Captec Franchise Capital Partners L.P. IV
Statements of Changes in Partners Capital
for the nine months ended September 30, 2003
(Unaudited)

Limited
    
    
    Limited
    
    
    General
    
    
    TotalPartners
    
    
    Partners
    
    
    Partners
    
    
    PartnersUnits
    
    
    Accounts
    
    
    Account
    
    
    CapitalBalance, December 31, 2002
    
    
    29,341
    
    
    $
    20,091,845
    
    
    $
    (31,743
    )
    
    $
    20,060,102Distributions  ($73.80 per limited partnership unit)
    
    
    
    
    
    
    (2,160,000
    )
    
    
    
    
    
    
    (2,160,000
    )Repurchase of limited partnership units
    
    
    (109
    )
    
    
    (79,555
    )
    
    
    
    
    
    
    (79,555
    )Net income
    
    
    
    
    
    
    1,332,809
    
    
    
    13,463
    
    
    
    1,346,272Balance, September 30, 2003
    
    
    29,232
    
    
    $
    19,185,099
    
    
    $
    (18,280
    )
    
    $
    19,166,819


The accompanying notes are an integral part of the financial statements.

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Captec Franchise Capital Partners L.P. IV
Statement of Cash Flows
for the nine months ended September 30, 2003 and 2002
(Unaudited)

2003
    
    
    2002Cash flows from operating activities:Net Income
    
    $
    1,346,272
    
    
    $
    1,314,817Adjustments to net income:Depreciation
    
    
    378,280
    
    
    
    367,733Amortization of debt issuance costs
    
    
    60,467
    
    
    
    59,853Gain on sale of equipment
    
    
    (44,215
    )
    
    
    Increase in unbilled rent
    
    
    (161,809
    )
    
    
    (165,758
    )Increase in accounts receivable
    
    
    (212,999
    )
    
    
    (23,524
    )Decrease in accounts payable and accrued expenses
    
    
    (36,496
    )
    
    
    (20,087
    )Increase in restricted cash
    
    
    (25,183
    )
    
    
    (9,470
    )Decrease in due from related parties
    
    
    
    
    
    
    (78,350
    )Decrease in due to related parties
    
    
    (631
    )
    
    
    (60,574
    )Net cash provided by operating activities
    
    
    1,303,686
    
    
    
    1,384,640Cash flows from investing activities:Purchase of property subject to operating lease
    
    
    (1,155,000
    )
    
    
    Proceeds from sale of equipment
    
    
    220,947
    
    
    
    180,983Principal payments on financing leases
    
    
    629,525
    
    
    
    921,117Net cash (used in) provided by investing activities
    
    
    (304,528
    )
    
    
    1,102,100Cash flows from financing activities:Proceeds from issuance of notes payable
    
    
    920,000
    
    
    
    Debt issuance costs
    
    
    (12,276
    )
    
    
    Repayments of notes payable
    
    
    (259,513
    )
    
    
    (226,820
    )Repurchase of limited partnership units
    
    
    (79,555
    )
    
    
    (15,829
    )Distributions to limited partners
    
    
    (2,160,000
    )
    
    
    (2,306,836
    )Net cash used in financing activities
    
    
    (1,591,344
    )
    
    
    (2,549,485
    )Net decrease in cash and cash equivalents
    
    
    (592,186
    )
    
    
    (62,745
    )Cash and cash equivalents, beginning of period
    
    
    1,132,891
    
    
    
    1,257,402Cash and cash equivalents, end of period
    
    $
    540,705
    
    
    $
    1,194,657


The accompanying notes are an integral part of the financial statements.

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CAPTEC FRANCHISE CAPITAL PARTNERS L.P. IV
NOTES TO FINANCIAL STATEMENTS



|1. |  | THE PARTNERSHIP AND ITS SIGNIFICANT ACCOUNTING PRINCIPLES:
|-- |  | ----------------------------------------------------------



| |  | Captec Franchise Capital Partners L.P. IV (the Partnership), a Delaware
limited partnership, was organized on July 23, 1996 for the purpose of
acquiring income-producing commercial real properties and equipment
leased on a triple net or double net basis, primarily to operators of
national and regional chain franchised fast food and family style
restaurants, as well as other national and regional retail chains.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The initial general partners of the Partnership were Captec Franchise
Capital Corporation IV (the Corporation), a wholly-owned subsidiary of
Captec Financial Group, Inc. (Captec), an affiliate, and Patrick L.
Beach, the Chairman of the Board of Directors, President and Chief
Executive Officer of the Corporation and Captec. In August 1998, Captec
Net Lease Realty, Inc. (Captec Net Lease), an affiliate, acquired the
General Partnership interest of the Partnership. In December 2001, Captec
Net Lease merged with and into Commercial Net Lease Realty, Inc.
(Commercial Net Lease). In connection with the merger, Commercial Net
Lease agreed to sell and assign its General Partnership interest in the
Partnership to GP4 Asset Acquisition, LLC (GP4 Asset Acquisition),
which is wholly-owned by Mr. Beach and is an affiliate of Captec.
Effective January 15, 2002, the limited partners consented to the
transfer of the General Partnership interest. On September 11, 2003, the
Partnerships secured lender consented to the transfer of the general
partnership interest to GP4 Asset Acquisition. Upon receipt of the
secured lenders consent, the general partnership interest was
immediately transferred to GP4 Asset Acquisition. Therefore, as of
September 11, 2003, GP4 Asset Acquisition became the general partner of
the Partnership.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The Partnership commenced a public offering (the Offering) of up to
30,000 limited partnership units (the Units), priced at $1,000 per
Unit, registered under the Securities Act of 1933, as amended, by means
of a Registration Statement filed on Form S-11, which was declared
effective by the Securities and Exchange Commission on December 23, 1996.
The Partnership accepted subscriptions for the minimum number of Units on
March 5, 1997 and immediately commenced operations. The Offering was
fully subscribed in December 1998. Since 1999, 768 Units have been
repurchased by the Partnership pursuant to the terms of the Repurchase
Plan set forth in the Partnerships December 23, 1996 prospectus with
respect to the Offering. At September 30, 2003, the Partnership had
29,232 Units issued and outstanding.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The principal investment objectives of the Partnership are: (i)
preservation and protection of capital; (ii) distribution of cash flow
generated by the Partnerships leases; (iii) capital appreciation of
Partnership properties; (iv) generation of increased income and
protection against inflation through escalation of base rents or
participation in gross revenues of tenants of Partnership properties; and
(v) deferred taxation of cash distributions to the limited partners.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Allocation of profits, losses and cash distributions from operations and
cash distributions from sale or refinancing are made pursuant to the
terms of the Partnership Agreement. Profits and losses from operations
are allocated among the limited partners based upon the number of Units
owned.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Net income per limited partnership interest is calculated using the
weighted average number of limited partnership Units outstanding during
the period and the limited partners allocable share of the net income.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Distributions per limited partnership Unit are calculated using the
actual distributions disbursed during the period to the weighted average
number of limited partnership Units during the period. Actual individual
limited partner distributions realized may vary from this calculation as
a result of a variety of factors including: (i) actual distributions are
computed based on quarterly operating
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| |  | results and outstanding limited partnership Units, which are disbursed in
the subsequent quarter; (ii) certain limited partners have elected to
receive monthly distribution versus quarterly distributions which creates
timing differences between comparative calculations, and (iii) the
calculation ignores the timing of repurchases.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The balance sheet of the Partnership as of September 30, 2003, the
statements of operations and cash flows for the periods ending September
30, 2003 and September 30, 2002 and the statements of changes in
partners capital for the period ending September 30, 2003 have not been
audited. In the opinion of Management, these unaudited financial
statements contain all adjustments necessary to present fairly the
financial position and results of operations and cash flows of the
Partnership for the periods then ended. Results of operations for the
interim periods are not necessarily indicative of results for the full
year. These unaudited financial statements should be read in conjunction
with the financial statements and notes thereto included in the
Partnerships annual report on Form 10-K for the year ended December 31,
2002 filed with the United States Securities and Exchange Commission on
March 31, 2003.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|2. |  | LAND AND BUILDING SUBJECT TO OPERATING LEASES:
|-- |  | ----------------------------------------------



| |  | The net investment in operating leases as of September 30, 2003 and
December 31, 2002 is composed of the following:
| |  | -------------------------------------------------------------------------------------------------------------------

September 2003
    
    
    December 2002Land
    
    $
    11,428,200
    
    
    $
    11,197,200Building and improvements
    
    
    20,473,580
    
    
    
    19,549,58031,901,780
    
    
    
    30,746,780Less accumulated depreciation
    
    
    (2,214,667
    )
    
    
    (1,836,387
    )Total
    
    $
    29,687,113
    
    
    $
    28,910,393




| |  | In April 2003, the Partnership acquired a property from an affiliate.
The property is leased to a Taco Bell operator. The allocation of purchase
price has not yet been determined.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|3. |  | NET INVESTMENT IN FINANCING LEASES:
|-- |  | -----------------------------------



| |  | The net investment in financing leases as of September 30, 2003 and
December 31, 2002 is composed of the following:
| |  | -------------------------------------------------------------------------------------------------------------------

September 2003
    
    
    December 2002Minimum lease payments to be received
    
    $
    2,753,360
    
    
    $
    3,567,069Estimated residual value
    
    
    32,160
    
    
    
    183,485Gross investment in financing leases
    
    
    2,785,520
    
    
    
    3,750,554Less unearned income
    
    
    ( 998,230
    )
    
    
    (1,147,432
    )Less direct origination costs
    
    
    ( 2,210
    )
    
    
    (11,786
    )Net investment in financing leases
    
    $
    1,785,080
    
    
    $
    2,591,336




|4. |  | NOTES PAYABLE:
|-- |  | --------------



| |  | In December 1998, the Partnership entered into a $6.4 million term note.
The note has a ten-year term, is collateralized by certain properties
subject to operating leases, and bears interest at a rate of 8.13% per
annum.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| |  | In March 1999, the Partnership entered into an additional $3.3 million
term note. The note has a ten-year term, is collateralized by certain
properties subject to operating leases, and bears interest at a rate of
8.5% per annum.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | In October 2000, the Partnership assumed a $3.75 million term note in
connection with the acquisition of a property. The note has a ten-year
term and bears interest at a rate of 8.35% per annum.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | In November 2001, the Partnership entered into an additional $1.5 million
term note. The note has a two-year term, is collateralized by certain
properties subject to operating leases, and bears interest at a rate of
prime plus 2% per annum. The lender has approved a renewal of the
note subject to definitive documentation.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | In April 2003, the Partnership entered into two term notes for $862,500
and $57,500 in connection with the acquisition of a property from an
affiliate. The notes each have a five-year term and bear interest at a
rate of 6.25% and 4.75% per annum, respectively.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Aggregate debt issuance costs of $634,710 were incurred in
connection with the issuance of the notes, and are being amortized to
interest expense over the term of the notes using the straight-line
method of accounting which is not materially different than the interest
rate method.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS




| |  | When used in this discussion, words such as intends, anticipates,
expects, will, could, estimate, and similar expressions are
intended to identify forward-looking statements. Such statements are
subject to certain risks and uncertainties, which could cause actual
results to differ materially from those described herein. Such risks and
uncertainties, some of which are beyond the Partnerships control,
include, but are not limited to, the following: (i) the possibility that
tenants and lessees may default in making rent payments, (ii) the risk of
fire or other casualty interrupting cash flow from a property, (iii) the
inability to enter into leases at the assumed rental rates, (iv)
unexpected expenses, and (v) the inability to sell properties at
anticipated prices and/or times.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | As a result of these and other factors, the Partnership may experience
material fluctuations in future operating results on a quarterly or
annual basis, which could materially and adversely affect its business,
financial condition and operating results. Any statements contained in
this report or any document incorporated herein by reference that are not
statements of historical fact may be deemed to be forward-looking
statements. These statements by their nature involve substantial risks
and uncertainties, some of which are beyond the Partnerships control,
and actual results may differ materially depending on a variety of
important factors, many of which are also beyond the Partnerships
control. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this report. The
Partnership disclaims, except as may be required by law, any obligations
to update or release revisions to these forward-looking statements to
reflect events or circumstances after the date of this report or to
reflect the occurrence of unanticipated events.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | RESULTS OF OPERATIONS
| |  | ---------------------



| |  | Three Months Ended September 30, 2003.During the three months ended
September 30, 2003 total operating revenue was $921,000, relatively
unchanged compared to approximately $914,000 for the three months ended
September 30, 2002. In comparison to the same quarter in 2002, income
for the three months ended September 30, 2003 included an increase in
rental income of
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| |  | approximately $32,000 due to the acquisition of a Taco Bell property in
April 2003 offset by a decrease in earned income from financing leases of
approximately $26,000 due to the amortization of principal balances and
the disposition of two equipment leases in August 2003 and the expiration
of two equipment leases in September 2003.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Operating expenses increased 1.8% to approximately $493,000 for the three
months ended September 30, 2003, compared to approximately $484,000 for
the three months ended September 30, 2002. The increase in operating
expenses for the three months ended September 30, 2003 compared to the
prior period is primarily due to an increase in the depreciation expense
on the acquisition of the Taco Bell property in April 2003 and an
increase in interest expense due to the issuance of additional debt in
connection with the purchase of that property.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Other income for three months ended September 30, 2003 was approximately
$24,000 due to the disposition of two equipment leases in August 2003 for
net cash proceeds of approximately $108,000, resulting in a gain of
approximately $24,000.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | As a result of the foregoing, the Partnerships net income increased 5.0%
to $452,000 for the three months ended September 30, 2003, compared to
$430,000 for the three months ended September 30, 2002.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The Partnership announced third quarter distributions of $560,000, of
which $487,437 was distributed to its limited partners on October 15,
2003 and the remaining $72,563 will be distributed to limited partners
who elected to receive distributions on a monthly basis.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Nine Months Ended September 30, 2003.During the nine months ended
September 30, 2003, total operating revenue was approximately $2,747,000
nearly unchanged compared to approximately $2,768,000 for the nine months
ended September 30, 2002. Rental revenue from operating leases for the
nine months ended September 30, 2003 increased 2.6% to approximately
$2,589,000 compared to approximately $2,523,000 for the nine months ended
September 30, 2002 due to the purchase of the Taco Bell property in April
2003. Earned income from financing leases for the nine months ended
September 30, 2003 decreased 35.7% to approximately $158,000 compared to
approximately $245,000 for the nine months ended September 30, 2002 due
to the amortization of principal balances and the expiration and
disposition of equipment leases in 2003.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Operating expenses were nearly unchanged at approximately $1,445,000 for
the nine months ended September 30, 2003 compared to approximately
$1,455,000 for the nine months ended September 30, 2002. The decrease in
operating expenses for the nine months ended September 30, 2003 compared
to the prior period in 2002 is primarily due to the decrease in general
and administrative expenses as a result of reduced professional fees
partially offset by the increase in the depreciation expense due to the
acquisition of the Taco Bell property in April 2003 and an increase in
interest expense due to the issuance of additional debt in connection
with the purchase of that property.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Other income for the nine months ended September 30, 2003 was
approximately $45,000 due to the disposition of an equipment lease in
April 2003 and two equipment leases in August 2003 for net cash proceeds
of approximately $196,000, resulting in a gain of approximately $44,000.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | As a result of the foregoing, the Partnerships net income increased 2.4%
to $1,346,000 for the nine months ended September 30, 2003, compared to
$1,315,000 for the three months ended September 30, 2002.
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CAPTEC FRANCHISE CAPITAL PARTNERS L.P. IV
PART I  FINANCIAL INFORMATION



| |  | LIQUIDITY AND CAPITAL COMMITMENTS
| |  | ---------------------------------



| |  | In December 1996, the Partnership commenced its Offering of up to 30,000
Units. The Offering was fully subscribed in December 1998. Net proceeds
after Offering expenses were approximately $26.1 million.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | In December 1998, the Partnership entered into a $6.4 million term note.
The Partnership entered into an additional $3.3 million term note in
March 1999. Proceeds from the notes were used to acquire additional
properties. The notes have a ten-year term, are collateralized by certain
properties subject to operating leases, and bear interest at a rate of
8.13% and 8.50% per annum, respectively.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The Partnership purchased one net leased real estate property in October
2000 and assumed a $3.75 million term note in connection with the
acquisition. The note has a ten-year term and bears interest at a rate of
8.35% per annum.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | In November 2001, the Partnership entered into an additional $1.5 million
term note. The note has a two-year term, is collateralized by certain
properties subject to operating leases and bears interest at a rate of
prime plus 2% per annum. Proceeds from this note were used to repay
approximately $700,000 of short-term borrowings and to provide working
capital intended to be used to fund Unit repurchases and potential
property acquisitions. The lender has approved a renewal of the note
subject to definitive documentation.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | In April 2003, the Partnership entered into two term notes in the
aggregate principal amount of $862,500 and $57,500 respectively. The
notes each have a five-year term and bear interest at a rate of 6.25% and
4.75% per annum, respectively. Proceeds from these notes were used to
purchase a property for approximately $1.2 million from an affiliate.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Debt issuance costs of approximately $635,000 incurred in connection with
the issuance of the notes are being amortized into interest expense over
the life of the notes using the straight-line method.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | In April 2003, the Partnership acquired a property located in Harrison,
Ohio subject to an existing lease with a Taco Bell Franchisee. The
property was purchased from an affiliate for a price of $1,155,000, which
the Partnership funded with $230,000 of cash and $920,000 of proceeds
from two term notes issued in connection with the purchase. The lease is
an absolute net lease that expires in September 2019. Under the terms of
the lease, annual rent is presently $115,000 and will increase 10.4% in
September 2004 and every five years thereafter.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | As of September 30, 2003, the Partnership had a portfolio of 22
properties located in 11 states, with a cost basis of $33.0 million, 10
performing equipment leases with an original investment of $2.4 million
and one repossessed equipment package related to a defaulted equipment
contract. The remaining net investment in the Partnerships leased
equipment is $533,000, net of $1.8 million of aggregate principal
collections on financing leases during the life of those investments.
Inclusive of the above amount, the Partnership has received approximately
$6.7 million of aggregate principal collections on its financing leases
during the life of those investments. As of September 30, 2003, the
Partnership has two properties for which rental payments have been
delinquent for approximately 330 days. The tenant experienced financial
difficulties that resulted in the stores recent closure. The
Partnership is actively seeking to re-tenant the property as well as
pursuing rights and remedies under the leases to collect all the amounts
owed. The General Partner does not have sufficient evidence at this time
to believe impairment exists.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| |  | The Partnership semi-annually considers written requests to repurchase
Units pursuant to the terms of the Repurchase Plan set forth in the
Partnerships December 23, 1996 prospectus with respect to the Offering.
Since 1999, 768 Units have been repurchased by the Partnership. At
September 30, 2003, the Partnership had 29,232 Units issued and
outstanding. The Partnership expects to fund any future Unit repurchases
out of working capital reserves and net sale or refinancing proceeds, but
may also fund such repurchases out of cash flow. The Partnership is not
obligated to accept Unit repurchase requests if the Partnership does not
have the liquidity to fund such requests and/or if the Partnership does
not have sufficient cash flow to distribute the 10% current preferred
return.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The Partnership expects that only limited amounts of liquid assets will
be required for existing properties since its property and equipment
leases require tenants and lessees to pay all taxes and assessments,
maintenance and repairs and insurance premiums, including casualty
insurance, thereby minimizing the Partnerships operating expenses and
capital requirements. The General Partner expects that the cash flow to
be generated by the Partnerships properties and equipment will provide
adequate liquidity and capital resources to pay operating expenses and
provide distributions to Limited Partners.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK



| |  | Credit risk relates to investment in leases and accounts receivable
balances and results from the possibility that a lessee defaults on its
contractual obligation to the Partnership. Both the ability of the
lessees to pay rent on a timely basis and the amount of the rent (which
is the Partnerships principal source of income) are affected by general
economic conditions. A default by a lessee or other premature
termination of a lease agreement will interrupt rental payments and
Partnership cash flows would be temporarily impacted. In such an
instance, the General Partner expects that it would find a substitute
lessee, however there can be no assurances that the property or equipment
could be leased on comparable or acceptable terms. The Partnership
monitors this risk by performing ongoing credit evaluations of lessees
and maintains allowances for potential credit losses.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The Partnership is exposed to interest rate risks, primarily as a result
of its long-term fixed rate debt used to finance its investments. The
Partnerships approach to interest rate risk management is to limit the
impact of interest rate changes on earnings and cash flows by matching
investments with long-term fixed rate borrowings to the extent possible.
A change in interest rates will not affect the interest expense
associated with the fixed rate debt. Changes in the interest rate
environment upon maturity of this fixed rate debt could have an effect on
the Partnerships future cash flows and earnings, depending on whether
the debt is replaced with other fixed rate debt, variable rate debt, or
equity or repaid by the sale of assets. Current Notes Payables mature
in 2003 (in final negotiations for refinancing) and in the years 2008
through 2010.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ITEM 4. CONTROLS AND PROCEDURES



| |  | Mr. Beach, acting in his capacity as the principal executive officer of
GP4 Asset Acquisition, is ultimately responsible for the disclosure
controls and procedures of the Partnership. Disclosure controls and
procedures are established and maintained by the Partnership to ensure
the information required to be disclosed by the Partnership in the
reports that it files or submits pursuant to the Securities Exchange Act
of 1934, as amended (the Act), is recorded, processed, summarized and
reported within the time periods specified in the rules and forms of the
United States Securities and Exchange Commission. Mr. Beach has evaluated
the effectiveness of the Partnerships disclosure controls and procedures
as of the end of the period covered by this report and has determined
that the Partnerships disclosure controls and procedures effectively
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| |  | communicate the information required to be disclosed by the Partnership
in the report it files or submits under the Act in a manner that allows
timely decisions regarding such disclosure.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | During the period covered by this report, there have been no material
changes in the Partnerships internal control over financial reporting
that has materially affected, or is reasonably likely to materially
affect, the Partnerships internal control over financial reporting.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

PART II  OTHER INFORMATION



| |  | ITEM 1. LEGAL PROCEEDINGS.    On November 19, 2002, the Partnership was
named as one of the defendants in a personal injury and liability suit
relating to an alleged unsafe walkway at a property. The General Partner
and Partnership have denied any wrongdoing and intend to vigorously
contest the matter. The Partnership has insurance, which would cover any
amounts less retention that may ultimately be paid
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ITEM 2.
    
    
    
    CHANGES IN SECURITIES. None.ITEM 3.
    
    
    
    DEFAULTS UPON SENIOR SECURITIES. None.ITEM 4.
    
    
    
    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. None.ITEM 5.
    
    
    
    OTHER INFORMATION. NoneITEM 6.
    
    
    
    EXHIBITS AND REPORTS ON FORM 8-K




|(a) |  | The following exhibits are included herein or incorporated by
reference:
|--- |  | ------------------------------------------------------------------------

Number
    
    Exhibit4
    
    Amended Agreement of Limited Partnership of Registrant.
(Incorporated by reference to the corresponding exhibit in the
Registrants Form 10-K for the year ended December 31, 1998)10.1
    
    Promissory Note dated November 28, 1998 between Registrant
and National Realty Funding L.C. (Incorporated by reference to the
corresponding exhibit in the Registrants Form 10-K for the year
ended December 31, 1998)10.2
    
    Promissory Note dated March 31, 1999 between Registrant and
National Realty Funding L.C. (Incorporated by reference to the
corresponding exhibit in the Registrants Form 10-Q for the quarter
ended March 31, 1999)31
    
    Certification Pursuant to Section 302 of the Sarbanes-Oxley
Act of 200232
    
    Certification Pursuant to 18 U.S.C. section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(b)
    
    Reports on Form 8-K:(b)
    Reports on Form 8-K:




| |  | There were no reports filed on Form 8-K for the quarter ended September
30, 2003.
| |  | ---------------------------------------------------------------------------------

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SIGNATURES

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.

By:
    
    Captec Franchise Capital Partners L.P. IVGP4 Asset Acquisition, LLCIts ManagerBy:
    
    /s/ Patrick L. BeachPatrick L. BeachPresidentDate:
    
    November 14, 2003


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10-Q EXHIBIT INDEX



EXHIBIT NO.
    
    DESCRIPTION4
    
    
    Amended Agreement of Limited Partnership of Registrant.
(Incorporated by reference to the corresponding exhibit in the
Registrants Form 10-K for the year ended December 31, 1998)10.1
    
    
    Promissory Note dated November 28, 1998 between Registrant
and National Realty Funding L.C. (Incorporated by reference to the
corresponding exhibit in the Registrants Form 10-K for the year
ended December 31, 1998)10.2
    
    
    Promissory Note dated March 31, 1999 between Registrant and
National Realty Funding L.C. (Incorporated by reference to the
corresponding exhibit in the Registrants Form 10-Q for the quarter
ended March 31, 1999)31
    
    
    Certification Pursuant to Section 302 of the Sarbanes-Oxley
Act of 200232
    
    
    Certification Pursuant to 18 U.S.C. section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002


15