<PAGE>

                                                                    Exhibit 10.7
                                                                    ------------

                  AMENDED AND RESTATED COLLATERAL ASSIGNMENT
                  ------------------------------------------
                                      OF
                                      --
                             PARTNERSHIP INTEREST
                             --------------------

     This COLLATERAL ASSIGNMENT OF PARTNERSHIP INTEREST (this "Assignment"),
dated as of June 29, 2001, from AmeriKing Indiana Holdings, Inc. (the
"Assignor") in favor of Fleet National Bank (f/k/a BankBoston, N.A., the
"Assignee"), a national banking association, as agent (hereinafter, in such
capacity, the "Agent") for itself and other lending institutions (hereinafter,
collectively, the "Banks"), which are or may become parties to the Credit
Agreement dated as of the date hereof (as hereinafter defined).

     WHEREAS, National Restaurant Enterprises, Inc. (the "Borrower"), AmeriKing,
Inc. ("AmeriKing"), the Agent and the Banks entered into a Fourth Amended and
Restated Revolving Credit Agreement dated as of December 24, 1998 (as amended
and in effect from time to time, the "Revolver Credit Agreement"), pursuant to
which the Banks, subject to the terms and conditions contained therein, provided
certain financial accommodations to the Borrower; and

     WHEREAS, the Borrower, AmeriKing, the Agent and the Banks entered into an
Acquisition Revolving Credit Agreement dated as of December 24, 1998 (as amended
and in effect from time to time, the "Acquisition Credit Agreement," and
collectively with the Revolver Credit Agreement, the "Existing Credit
Agreements") pursuant to which the Banks, subject to the terms and conditions
contained therein, provided certain financial accommodations to the Borrower;
and

     WHEREAS, the parties to the Existing Credit Agreements and National
Restaurant Enterprises Holdings, Inc. ("Holdings") have agreed to consolidate,
amend and restate the Existing Credit Agreements in their entirety by entering
into the Consolidated, Amended and Restated Revolving Credit Agreement, dated as
of the date hereof, among the Borrower, AmeriKing, Holdings, the Agent and the
Banks (as amended and in effect from time to time, the "Credit Agreement"); and

     WHEREAS, the Assignor is the legal and beneficial owner of a limited
partnership interest in AmeriKing Indiana, L.P., a Delaware limited partnership
(the "Partnership"); and

     WHEREAS, the Borrower and the Assignor are members of a group of related
corporations, the success of any one of which is dependent in part on the
success of the other members of such group; and

     WHEREAS, in connection with the Existing Credit Agreements, the Assignor
and the Agent executed a Collateral Assignment of Partnership Interest dated as
of December 24, 1998 (as amended and in effect from time to time, the "Existing
Partnership Assignment Agreement"); and

     WHEREAS, it is a condition precedent to the Agent and the Banks making
loans or otherwise extending credit to the Borrower under the Credit Agreement
<PAGE>

                                      -2-



that the Assignor execute and deliver to the Agent, for the benefit of the Banks
and the Agent, an amended and restated collateral assignment of partnership
interest in substantially the form hereof; and

     WHEREAS, each of the Assignor and the Agent wishes to amend and restate in
its entirety the Existing Partnership Assignment Agreement for the benefit of
the Agent and the Banks as herein provided, which shall amend and restate in its
entirety the Existing Partnership Assignment Agreement, and the Existing
Partnership Assignment Agreement shall remain in full force and effect only as
set forth herein; and

     WHEREAS, the Assignor is expected to receive substantial direct and
indirect benefits from the making of loans and other extensions of credit to the
Borrower by the Banks pursuant to the Credit Agreement (which benefits are
hereby acknowledged); and

     WHEREAS, the Assignor has executed a Guaranty in favor of the Agent and the
Banks dated as of the date hereof (the "Guaranty") pursuant to which the
Assignor guaranteed the payment and performance of the Borrower's Obligations to
the Banks and the Agent under or in respect of the Credit Agreement; and

     WHEREAS, the Assignor has executed a Security Agreement dated as of the
date hereof between the Assignor and the Agent (the "Security Agreement"); and

     WHEREAS, the Assignor wishes to pledge its limited interest in the
Partnership in favor of the Agent, for the benefit of the Banks and the Agent,
as herein provided;

     NOW, THEREFORE, in consideration of the premises contained herein and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

                               1.  DEFINITIONS.
                                   -----------

     All capitalized terms used herein without definitions shall have the
respective meanings provided therefor in the Credit Agreement.  All terms
defined in the Uniform Commercial Code of the Commonwealth of Massachusetts and
used herein shall have the same definitions herein as specified therein.  The
following terms shall have the following meanings herein:

     Acquisition Credit Agreement.  See preamble.
     ----------------------------

     Assignee, Assignor.  See preamble.
     ------------------

     Assigned Interests.  See (S)2.1 hereof.
     ------------------

     Cash Collateral.  See (S)4.2.
     ---------------

     Cash Collateral Account.  See (S)4.2.
     -----------------------
<PAGE>

                                      -3-

     Collateral.  The Assigned Interests and all other property now or hereafter
     ----------
pledged or assigned to the Assignee by the Assignor hereunder, and all income
therefrom, increases therein and proceeds thereof.

     Credit Agreement.  See preamble.
     ----------------

     Event of Default.  See (S)5.
     ----------------

     Existing Credit Agreements.  See preamble.
     --------------------------

     General Partner.  As defined in the Partnership Agreement.
     ---------------

     Guaranty.  See preamble.
     --------

     Partnership.  See preamble.
     -----------

     Partnership Agreement.  The Agreement of Limited Partnership dated as of
     ---------------------
January 22, 1998, as amended, modified, supplemented or restated from time to
time.

     Revolver Credit Agreement.  See preamble.
     -------------------------

     Security Agreement.  See preamble.
     ------------------

     Time Deposits.  See (S)4.2.
     -------------

                                2.  ASSIGNMENT.
                                    ----------

     2.1.  Grant of Security Interest.  The Assignor hereby pledges, grants a
           --------------------------
security interest in, mortgages, and collaterally assigns and transfers to the
Assignee, as security for the payment and performance in full when due of all of
the Obligations, all the right, title and interest of the Assignor in and to the
Assignor's partnership interest in the Partnership, wherever located and whether
now owned or hereafter acquired or arising, including, without limitation, (a)
all payments or distributions, whether in cash, property or otherwise, at any
time owing or payable to the Assignor on account of its interest as a partner in
the Partnership or in the nature of a management, investment banking or other
fee paid or payable by the Partnership to the Assignor, (b) all of the
Assignor's rights and interests under the Partnership Agreement, including all
voting and management rights and all rights to grant or withhold consents or
approvals, (c) all rights of access and inspection to and use of all books and
records, including computer software and computer software programs, of the
Partnership, (d) all other rights, interests, property or claims to which the
Assignor may be entitled in its capacity as a partner of the Partnership, and
(e) all proceeds and products of any of the foregoing (all of the foregoing
rights, title and interest described in the foregoing clauses (a) through (e)
being herein referred to collectively as the "Assigned Interests").
<PAGE>

                                      -4-

          2.2.  Pledge of Cash Collateral Accounts. The Assignor also hereby
                ----------------------------------
pledges and assigns to the Assignee a security interest in, the Cash Collateral
Account and all of the Cash Collateral, subject to the terms of this Agreement.

          2.3.  Waiver of Certain Partnership Agreement Provisions. The Assignor
                --------------------------------------------------
irrevocably waives any and all provisions of the Partnership Agreement that (a)
prohibit, restrict, condition or otherwise affect the grant hereunder of any
lien, security interest or encumbrance on any of the Collateral or any
enforcement action which may be taken in respect of any such lien, security
interest or encumbrance, or (b) otherwise conflict with the terms of this
Assignment.

          2.4.  Limitations.  Notwithstanding the foregoing provisions of this
                -----------
(S)2, such grant of security interest shall not extend to, and the term
"Collateral" shall not include, any general intangibles, including, without
limitation, a partnership interest or right to a distribution by virtue of
ownership of such partnership interest, which is now or hereafter held by the
Assignor as partner in the Partnership, to the extent that (a) such general
intangibles are not assignable or capable of being encumbered as a matter of law
or under the terms of the Partnership Agreement or other agreement applicable
thereto) or would cause a default by the Assignor or the Partnership (but solely
to the extent that any such restriction referred to in this clause (a) shall be
enforceable under applicable law), without the consent of one or more of the
other partners thereof or other applicable party thereto and (b) such consent
has not been obtained; provided, however, that the foregoing grant of security
                       --------  -------
interest shall extend to, and the term "Collateral" shall include, (i) any and
all proceeds of such general intangibles to the extent that the assignment or
encumbering of such proceeds is not so restricted and (ii) upon any such other
partner's or other applicable party's consent with respect to any such otherwise
excluded general intangibles being obtained, thereafter such general intangibles
as well as any and all proceeds thereof that might theretofore have been
excluded from such grant of a security interest and the term "Collateral".

          3.  REPRESENTATIONS, WARRANTIES AND COVENANTS OF ASSIGNOR.
              -----------------------------------------------------

          3.1.  Representations and Warranties. The Assignor hereby represents
                ------------------------------
and warrants to, Assignee as follows:

             (a)  The Partnership is duly organized, validly existing, and in
          good standing under the laws of the State of Delaware and all other
          jurisdictions where the Partnership does business; the Partnership
          Agreement is in full force and effect; the Assignor is a duly
          constituted partner of the Partnership pursuant to the Partnership
          Agreement; the persons and entities listed as partners in the
          Partnership Agreement are the only partners of the Partnership; and
          the Assigned Interests are validly issued, non-assessable and, except
          as set forth in (S)3.1(g) hereof, fully paid partnership interests in
          the Partnership.
<PAGE>

                                      -5-

             (b)  The Assignor has full right, power and authority to make this
     Assignment (including the provisions enabling the Assignee or its nominee,
     upon the occurrence of an Event of Default, to exercise the rights provided
     for herein), under the Partnership Agreement and under applicable law,
     without the consent, approval or authorization of, or notice to, any other
     person, including any regulatory authority or any person having any
     interest in the Partnership, other than any consents to this Assignment
     required to be given by the other partners under the Partnership Agreement,
     which consents, if any, have been duly received.

             (c)  The execution, delivery, and performance of this Assignment
     and the transactions contemplated hereby (i) have been duly authorized by
     all necessary corporate proceedings on behalf of the Assignor, (ii) do not
     conflict with or result in any breach or contravention of any applicable
     law, regulation, judicial order or decree to which such Assignor is
     subject, (iii) do not conflict with or violate any provision of the
     corporate charter or bylaws of the Assignor, and (iv) do not violate,
     conflict with, constitute a default or event of default under, or result in
     any rights to accelerate or modify any obligations under any material
     agreement, instrument, lease, mortgage or indenture to which such Assignor
     is party or subject, or to which any of its assets are subject.

             (d)  This Assignment has been duly executed and delivered by the
     Assignor and is the legal, valid, and binding obligation of the Assignor
     enforceable against it in accordance with the terms hereof except as
     enforceability is limited by bankruptcy, insolvency, reorganization,
     moratorium, or other laws relating to or affecting generally the
     enforcement of creditors' rights and except to the extent that availability
     of the remedy of specific performance or injunctive relief is subject to
     the discretion of the court before which any case or proceeding therefor
     may be brought.

             (e)  The Assignor is the sole, direct, legal and beneficial owner
     of all Assigned Interests, which Assigned Interests constitute the
     Assignor's entire limited partnership interest in the Partnership
     (reflecting a 1% interest in the Partnership), and has good and marketable
     title thereto, free and clear of any lien, security interest, mortgage or
     other encumbrance, other than the liens and security interest granted to
     the Assignee hereunder or liens under the Securities Act of 1933, as
     amended; and the liens and security interests hereunder constitute valid
     and perfected first priority liens and security interests.

             (f)  The Assignor's principal place of business, chief executive
     office, and the place where its records concerning the Collateral are kept
     is located at 2215 Enterprise Drive, Suite 1502, Westchester, IL  60154.

             (g)  Except as otherwise provided in (S)6 of the Partnership
     Agreement, the Assignor has no obligation to make any contribution, capital
<PAGE>

                                      -6-


     call or other payment to the Partnership with respect to the Assigned
     Interests.

             (h)  The copy of the Partnership Agreement attached hereto as
     Exhibit A is a true, correct, and complete copy thereof, and the
     ---------
     Partnership Agreement has not been amended or modified in any respect,
     except for such amendments or modifications as are attached to the copy
     thereof delivered to the Assignee.

             (i)  The partnership interest of the Assignor in the Partnership is
     not evidenced by any certificate issued by the Partnership.

     3.2.  Covenants.  The Assignor covenants to the Assignee as follows:
           ---------

             (a)  The Assignor will not permit or agree to any amendment or
     modification of the Partnership Agreement (except for ministerial or other
     non-substantive amendments or modifications) as in effect on the date
     hereof (or other governing document with respect to the Assigned
     Interests), or waive any rights or benefits under the Partnership Agreement
     (or such other governing document), without the prior written consent of
     the Assignee.

             (b)  Without the prior written consent of the Assignee, the
     Assignor will not sell, dispose of or assign, beneficially or of record, or
     grant, create, permit or suffer any lien or encumbrance on, any of the
     Assigned Interests except for (i) the collateral assignment and security
     interest provides herein and (ii) any sale or other disposition by Assignor
     which is expressly permitted by or provided for in the provisions of
     (S)9.5.2 of the Credit Agreement, or withdraw as a limited partner of the
     Partnership.

             (c)  Without the prior written consent of the Assignee, the
     Assignor shall not cast any vote or give or grant any consent, waiver or
     ratification or take any other action which could reasonably be expected to
     (i) directly or indirectly authorize or permit the dissolution, liquidation
     or sale of the Partnership or the sale, lease, assignment, transfer or
     other disposition of any of the assets of the Partnership (except for
     personal property which is disposed of in the ordinary course of business
     and so long as no Event of Default has occurred and is continuing), whether
     by operation of law or otherwise, (ii) have the result of materially and
     adversely affecting any of the Assignee's rights under this Assignment or
     under any of the other Revolver Loan Documents, (iii) violate the terms of
     this Assignment or any of the other Revolver Loan Documents, (iv) have the
     effect of impairing the validity, perfection or priority of the security
     interest of the Assignee in any manner whatsoever, or (v) cause an Event of
     Default.

             (d)  The Assignor will comply with all laws, regulations, judicial
     orders or decrees applicable to the Collateral or any portion thereof, and
     perform and observe its duties under the Partnership Agreement or other
     governing documents with respect to the Assigned Interests.
<PAGE>

                                      -7-

             (e)  The Assignor will (i) keep and maintain at its own cost and
     expense at its principal place of business satisfactory and complete
     records of the Collateral including a record of all payments received and
     all other dealings of a material nature with the Collateral, and (ii) mark
     its books and records pertaining to the Collateral and its books and
     records kept in its jurisdiction of organization to evidence this
     Assignment and the liens and security interests granted hereby.

             (f)  The Assignor will pay promptly when due any taxes,
     assessments, and governmental charges or levies imposed upon the Collateral
     or in respect of its income or profits therefrom, as well as all claims of
     any kind except that no such charge need be paid if (i) the validity
     thereof is being diligently contested in good faith by appropriate
     proceedings; (ii) such proceedings do not involve any danger of the sale,
     forfeiture, or loss of any of the Collateral or any interest therein; and
     (iii) such charge is adequately reserved against in a manner reasonably
     acceptable to the Assignee.

             (g)  The Assignor will advise the Assignee promptly, in reasonable
     detail, of (i) any lien, charge, claim or other encumbrance made or
     asserted against any of the Collateral; (ii) any material change in the
     composition of the Collateral; (iii) the occurrence of any other event or
     condition which to its knowledge would have a material adverse effect on
     the validity, perfection or priority of the liens and security interests
     granted hereunder; and (iv) any bankruptcy or litigation case or proceeding
     relating to any of the Collateral.

             (h)  The Assignor will not (i) change its principal place of
     business or chief executive office or the location of the records
     concerning the Collateral without giving prior written notice to the
     Assignee and taking such actions as may be necessary or appropriate in the
     reasonable opinion of the Assignee duly to perfect and continue the
     perfection of the Assignee's first priority lien and security interest in
     the Collateral pursuant to the laws of any jurisdiction into which such
     place of business, chief executive office, or records is or are
     transferred, and (ii) change its name, identity, or organizational
     structure in any matter that might make any financing statement filed
     hereunder misleading or invalid unless the Assignor shall have notified the
     Assignee thereof and taken all such actions as may be necessary or
     appropriate in the reasonable opinion of the Assignee to make any financing
     statement filed in favor of the Assignee not misleading or invalid.

             (i)  The Assignor shall do or cause to be done all things necessary
     to preserve, renew and keep in full force and effect its legal existence
     and that of the Partnership, the power and authority of each of the
     Assignor and the Partnership to own its property and carry on its business,
     the qualification of each of the Assignor and the Partnership to do
     business in its jurisdiction of organization, and the qualification of each
     of the Assignor and the Partnership to do business in each other
     jurisdiction where such
<PAGE>

                                      -8-

     qualification is necessary except where the failure so to qualify would not
     have a material adverse effect on the rights and interests of the Assignee
     hereunder.

             (j)  Within one hundred twenty (120) days after the end of each tax
     year, the Assignor shall furnish to the Assignee complete copies of the
     federal income tax returns of the Assignor and of the Partnership except
     where such returns have already been delivered to the Assignee pursuant to
     any of the Revolver Loan Documents.

                            4.  RIGHTS OF ASSIGNEE.
                                ------------------

     4.1.  Assignee Appointed Attorney-in-Fact.  The Assignor hereby irrevocably
           -----------------------------------
constitutes and appoints the Assignee, its successors and assigns, its true and
lawful attorney-in-fact, with full power and authority and with full power of
substitution, at the expense of the Assignor, either in the Assignee's own name
or in the name of the Assignor, at any time and from time to time, in each case
as the Assignee in its sole discretion may determine (i) to execute, deliver and
file financing statements with respect hereof and to execute, deliver and file
amendments to and continuations of such financing statements as the Assignee may
deem necessary or appropriate, and (ii) upon the occurrence and during the
continuance of an Event of Default:

     (A)  to take any action and execute any instruments that such attorney-in-
          fact may deem necessary or advisable to accomplish the purposes
          hereof;

     (B)  to ask, demand, collect, receive, receipt for, sue for, compound, and
          give acquittance for any and all sums or properties that may be or
          become due, payable, or distributable in respect of the Collateral or
          that constitute a part thereof, with full power to settle, adjust, or
          compromise any claim thereunder or therefor as fully as the Assignor
          could do;

     (C)  to endorse or sign the name of the Assignor on all instruments given
          in payment or in part payment thereof and all documents of
          satisfaction, discharge, or receipt required or requested in
          connection therewith; and

     (D)  to file or take any action or institute any case or proceeding that
          the Assignee may deem necessary or appropriate to collect or otherwise
          realize upon any or all of the Collateral, or effect a transfer
          thereof, or that may be necessary or appropriate to protect and
          preserve the right, title, and interest of the Assignee in and to the
          Collateral and the security intended to be afforded hereby.

     4.2.  Cash Collateral Account.  Unless applied by the Assignee to
           -----------------------
Obligations then due and payable, all sums of money that are paid to the
Assignee
<PAGE>

                                      -9-


pursuant to this Assignment shall be deposited into an interest bearing account
with the Assignee or another financial institution selected by the Assignee in
its sole discretion (the "Cash Collateral Account"). Some or all of the funds
                          ---- ---------- -------
from time to time in the Cash Collateral Account may be invested in time
deposits, including certificates of deposit issued by the Assignee or another
financial institution selected by the Assignee in its sole discretion (such
certificates of deposit or other time deposits being hereinafter referred to,
collectively, as "Time Deposits") that are satisfactory to the Assignee after
                  ---- --------
consultation with the Assignor, provided that nothing contained herein shall
                                --------
require the Assignor's consent to such Time Deposits, provided, in any such
case, arrangements satisfactory to the Assignee are made to perfect, and to
ensure the first priority of, its lien and security interest in such Time
Deposits. Interest earned on the Cash Collateral Account and on the Time
Deposits, and the principal of the Time Deposits at maturity that is not
invested in new Time Deposits, shall be deposited in the Cash Collateral
Account. The Cash Collateral Account, all sums from time to time standing to the
credit of the Cash Collateral Account, any and all Time Deposits, any and all
instruments or other writings evidencing Time Deposits, and any and all proceeds
of any thereof are hereinafter referred to as the "Cash Collateral."
                                                   ---------------

     4.3.  Distributions, Conversion, Voting, etc. So long as no Event of
           --------------------------------------
Default shall have occurred and be continuing and to the extent permitted under
the Credit Agreements, the Assignor shall be entitled to:

     (i)   receive all cash and other distributions paid in respect of the
           Assigned Interests not authorized or made in violation of the Credit
           Agreement;

     (ii)  exercise any management or voting rights relating to the Assigned
           Interests; and

     (iii) give consents, waivers, approvals, and ratifications in respect of
           the Assigned Interests.

All such rights of the Assignor to receive cash and other distributions shall
cease if an Event of Default shall have occurred and be continuing, and in each
such case the Assignor shall (A) at the request of the Assignee, issue
appropriate instructions that any such distributions be paid directly to the
Assignee or to such account as the Assignee may designate, and (B) hold in trust
for the Assignee and immediately pay over to the Assignee any such distributions
received by the Assignor.  All such rights of the Assignor referred to in
clauses (ii) and (iii) shall, at the Assignee's sole option, as evidenced by the
Assignee's notifying the Assignor in writing of its exercise of such option,
cease in case an Event of Default shall have occurred and be continuing.

     4.4.  No Assignment of Duties. This Assignment constitutes an assignment of
           -----------------------
the Assigned Interests and the other Collateral only and not an assignment of
any duties or obligations of the Assignor with respect thereto, and by its
acceptance hereof and whether or not the Assignee shall have exercised any of
its rights or remedies hereunder, the Assignee does not undertake to perform or
discharge, and shall not be responsible or liable for the performance or
discharge of,
<PAGE>

                                      -10-

any such duties or responsibilities, including, without limitation, for capital
calls. The Assignor agrees that, notwithstanding the exercise by the Assignee of
any of its rights hereunder, the Assignor shall remain liable for the full and
prompt performance of all of the Assignor's obligations and liabilities under
the Partnership Agreement. Under no circumstances shall the Assignee or any
holder of any of the Obligations as such be deemed to be a partner of the
Partnership by virtue of the provisions of this Assignment unless expressly
agreed to in writing by the Assignee. Without limiting the generality of the
foregoing, the Assignee shall have no partnership fiduciary duty to the
Assignor, whether by virtue of the security interests and liens hereunder, or
any enforcement action in respect of such security interests and liens, unless
and until the Assignee is admitted to the Partnership as a substitute partner
after exercising enforcement rights under (S)9-504 or (S)9-505 of the Uniform
Commercial Code of the Commonwealth of Massachusetts, or otherwise.

                            5.  EVENTS OF DEFAULT.
                                -----------------

     Any one or more of the following events shall constitute an "Event of
Default" hereunder:

          (a) The Assignor shall fail to perform any of its obligations under
     the Partnership Agreement;

          (b) The occurrence of any "Event of Default" or other like occurrence
     under the Credit Agreement, the other Revolver Loan Documents or any other
     agreement between the Assignor and the Assignee or under any other
     instrument executed by the Assignor in favor of the Assignee.

                                 6.  REMEDIES.
                                     --------

     6.1. Remedies. During the continuance of an Event of Default, the Assignee
          --------
shall have, in addition to the rights, powers and authorizations to collect the
sums assigned hereunder, all rights and remedies of a secured party under the
Uniform Commercial Code of the Commonwealth of Massachusetts and under other
applicable law with respect to the Assigned Interests and any other Collateral
hereunder, including, without limitation, the following rights and remedies:

          (a) if the Assignee so elects and gives written notice of such
     election to the Assignor, the Assignee may, in its sole discretion, (i)
     exercise any management or voting rights relating to the Assigned Interests
     (whether or not the same shall have been transferred into its name or the
     name of its nominee or nominees) for any lawful purpose, including for the
     amendment or modification of the Partnership Agreement or other governing
     documents or the liquidation of the assets of the Partnership, (ii) give
     all consents, waivers, approvals, and ratifications in respect of such
     Assigned Interests, and (iii) otherwise act with respect thereto as though
     it were the outright owner thereof (the Assignor hereby irrevocably
     constituting and appointing the Assignee the proxy and attorney-in-fact of
     the Assignor, with full power and authority of substitution, to do so);
<PAGE>

                                      -11-

          (b) the Assignee may, in its sole discretion, demand, sue for,
     collect, compromise, or settle any rights or claims in respect of any
     Collateral, as attorney-in-fact pursuant to (S)4.1 or otherwise;

          (c) (i)  the Assignee may, in its sole discretion, sell, resell,
     assign, deliver, or otherwise dispose of any or all of the Collateral, for
     cash or credit or both and upon such terms, in such manner, at such place
     or places, at such time or times, and to such persons or entities as the
     Assignee thinks expedient, all without demand for performance by the
     Assignor or any notice or advertisement whatsoever except as expressly
     provided herein or as may otherwise be required by applicable law; and (ii)
     at the time of any such sale or other disposition, the Assignee or its
     nominee or any purchaser of the Collateral at a foreclosure sale may, in
     its sole discretion, cause the Partnership to make an election under (S)754
     of the Internal Revenue Code as to the basis of any Assigned Interest being
     sold or otherwise disposed of.

          (d) the Assignee may, in its sole discretion, cause all or any part of
     the Assigned Interests held by it to be transferred into its name or the
     name of its nominee or nominees; and

          (e) the Assignee may, in its sole discretion, set off against the
     Obligations or place an administrative hold or freeze on any and all sums
     deposited with it or held by it, including any sums standing to the credit
     of the Cash Collateral Account and any Time Deposits issued by the
     Assignee, with any withdrawal penalty relating to Time Deposits being an
     expense of collection.

     6.2. Remedies Not Exclusive. No single or partial exercise by the Assignee
          ----------------------
of any right, power or remedy hereunder shall preclude any other or further
exercise thereof or the exercise of any other right, power or remedy. Each
right, power and remedy herein specifically granted to the Assignee or otherwise
available to it shall be cumulative, and shall be in addition to every other
right, power, and remedy herein specifically given or now or hereafter existing
at law, in equity, or otherwise. Each such right, power and remedy, whether
specifically granted herein or otherwise existing, may be exercised at any time
and from time to time and as often and in such order as may be deemed expedient
by the Assignee in its sole discretion.

     6.3. Public Sale. In the event of any disposition of the Collateral as
          -----------
provided in (S)6.1(c), the Assignee shall give to the Assignor at least ten (10)
Business Days prior written notice of the time and place of any public sale of
the Collateral or of the time after which any private sale or any other intended
disposition is to be made. The Assignor hereby acknowledges that ten (10)
Business Days prior written notice of such sale or sales shall be reasonable
notice. The Assignee may enforce its rights hereunder without any other notice
and without compliance with any other condition precedent now or hereafter
imposed by law, regulation, judicial order or decree or otherwise (all of which
are hereby expressly waived by the Assignor, to the fullest extent permitted by
law). The Assignee may buy any part or all of the
<PAGE>

                                      -12-

Collateral at any public sale and if any part or all of the Collateral is of a
type customarily sold in a recognized market or is of a type which is the
subject of widely-distributed standard price quotations, the Assignee may buy at
private sale and may make payments thereof by any means. The Assignee may apply
the cash proceeds actually received from any sale or other disposition to the
reasonable expenses of retaking, holding, preparing for sale, selling, and the
like, to reasonable attorneys' fees, travel, and all other expenses which may be
incurred by the Assignee in attempting to collect the Obligations or to enforce
this Assignment or in the prosecution or defense of any case or proceeding
related to this Assignment, and then to the Obligations in accordance with the
requirements of the Credit Agreement with any surplus being applied as set forth
in (S)13.4 of the Credit Agreement. To the extent that any of the Obligations
are to be paid or performed by a person or entity other than the Assignor, to
the extent permitted by applicable law, the Assignor waives and agrees not to
assert any rights or privileges which it may have under (S)9-112 of the Uniform
Commercial Code of the Commonwealth of Massachusetts.

     6.4.  Private Sale. The Assignor recognizes that the Assignee may be unable
           ------------
to effect a public sale of the Collateral by reason of the lack of a ready
market for the Collateral, of the limited number of potential buyers of the
Collateral or of certain prohibitions contained in the Securities Act of 1933,
state securities laws, federal banking laws, and other applicable laws, and that
the Assignee may be compelled to resort to one or more private sales thereof to
a restricted group of purchasers. The Assignor agrees that any such private
sales may be at prices and other terms less favorable to the seller than if sold
at public sales and that such private sales shall not solely by reason thereof
be deemed not to have been made in a commercially reasonable manner. The
Assignee shall be under no obligation hereunder or otherwise (except as provided
by applicable law) to delay a sale of any of the Collateral for the period of
time necessary to permit the registration of such securities for public sale
under the Securities Act of 1933 and applicable state securities laws. Any such
sale of all or a portion of the Collateral may be for cash or on credit or for
future delivery and may be conducted at a private sale where the Assignee or any
other person or entity may be the purchaser of all or part of the Assigned
Interests so sold. The Assignor agrees that to the extent notice of sale shall
be required by law, at least ten (10) Business Days prior notice to the Assignor
of the time and place of any public sale or the time after which any private
sale is to be made shall constitute reasonable notification. Subject to the
foregoing, the Assignee agrees that any sale of the Assigned Interests shall be
made in a commercially reasonable manner. The Assignee shall incur no liability
as a result of the sale of any of the Collateral, or any part thereof, at any
private sale which complies with the requirements of this (S)6.4. The Assignor
hereby waives, to the extent permitted by applicable law, any claims against the
Assignee arising by reason of the fact that the price at which any of the
Collateral, or any part thereof, may have been sold at such private sale was
less than the price that might have been obtained at a public sale, even if the
Assignee accepts the first offer deemed by the Assignee in good faith deemed to
be commercially reasonable under the circumstances and does not offer any of the
Collateral to more than one offeree.
<PAGE>

                                      -13-

     6.5.  Title. The Assignor further acknowledges its obligation for payment
           -----
of any deficiency remaining beyond the amount of the sale price of the Assigned
Interests, or any of them, less any payment or expenses incurred by the Assignee
in connection with such sale, and the Assignor will promptly pay the amount of
any such deficiency to the Assignee. Nothing contained in this Assignment shall
be construed to require the Assignee to take any action with respect to the
Assigned Interests, whether by way of foreclosure or otherwise and except as
required by the Partnership Agreement, in order to permit the Assignee to become
a substitute limited partner of the Partnership under the Partnership Agreement.

                  7.  ASSIGNMENT NOT AFFECTED BY OTHER ACTS.
                      -------------------------------------

     The Assignor acknowledges and agrees that the security interests and
collateral assignments herein provided for shall remain in full force and effect
and shall not be impaired by any acceptance by the Assignee of any other
collateral security for or guaranty of any of the Obligations, or by any failure
or neglect or omission on the part of the Assignee to realize upon, collect or
protect any Obligations or any Collateral.  The security interests and
collateral assignments herein provided for shall not in any manner be affected
or impaired by any renewal, extension, modification, amendment, waiver, or
restatement of any of the Obligations or of any collateral security therefor, or
of any guaranty thereof.  In order to sell, dispose or otherwise realize upon
the security interests and assignments herein granted and provided for, and
exercise the rights granted the Assignee hereunder and under applicable law,
there shall be no obligation on the part of the Assignee at any time to first
resort for payment to any guarantors of the Obligations or any part thereof or
to resort to any other collateral security, property, liens or other rights or
remedies whatsoever, and the Assignee shall have the right to enforce the
security interests and collateral assignments herein provided for irrespective
of whether or not other proceedings are pending for realization upon or from any
of the foregoing.

                         8.  REGISTRATION AND FILING.
                             -----------------------

     The Assignor (i) has caused the Partnership to duly register the security
interests granted hereby on the books of the Partnership as required by (S)(S)8-
108, 8-313 and 8-321 of the Uniform Commercial Code of the Commonwealth of
Massachusetts, and has furnished the Assignee with evidence thereof (including,
without limitation, appropriate initial transaction statements), in form and
substance satisfactory to the Assignee, (ii) has duly executed and caused any
financing statements with respect to the Assigned Interests to be filed in such
a manner and in such places as may be required by law in order to fully protect
the rights of the Assignee hereunder, and (iii) will cause any financing
statements with respect to the Assigned Interests at all times to be kept
recorded and filed at its own expense in such a manner and in such places as may
be required by law in order to fully perfect the interests and protect the
rights of the Assignee hereunder.
<PAGE>

                                      -14-

                              9.  MISCELLANEOUS.
                                  -------------

     9.1.  Additional Instruments and Assurances. The Assignor hereby agrees, at
           -------------------------------------
its own expense, to execute and deliver, from time to time, any and all further,
or other, instruments, and to perform such acts, as the Assignee may reasonably
request to effect the purposes of this Assignment and to secure to the Assignee
the benefits of all rights and remedies conferred upon the Assignee by the terms
of this Assignment.

     9.2.  Release. If and only if all of the Obligations shall have been
           -------
indefeasibly paid, performed, and discharged in full in cash, any commitments to
lend under the Credit Agreement shall have been canceled, the Assignee shall,
upon demand and at the sole expense of the Assignor, release this Assignment and
the lien hereof by proper instrument or instruments, at the request and expense
of the Assignor.

     9.3.  Assignee's Exoneration. Under no circumstances shall the Assignee be
           ----------------------
deemed to assume any responsibility for or obligation or duty with respect to
any part or all of the Collateral of any nature or kind or any matter or
proceeding arising out of or relating thereto, other than (i) to exercise
reasonable care in the physical custody of the Collateral and (ii) if an Event
of Default shall have occurred and be continuing, to act in a commercially
reasonable manner in exercising its rights and remedies with respect to the
Collateral. Subject to the foregoing, the Assignee shall not be required to take
any action of any kind to collect, preserve or protect its or the Assignor's
rights in the Collateral.

     9.4.  No Waiver, etc. Any term of this Assignment may be amended or
           --------------
modified with, but only with, the written consent of the Assignor and the
Assignee. Any term of this Assignment may be waived by a writing executed by the
party to be charged with such waiver. No act, failure, or delay by the Assignee
shall constitute a waiver of its rights and remedies hereunder or otherwise. No
single or partial waiver by the Assignee of any default, right, or remedy that
it may have shall operate as a waiver of any other default, right, or remedy or
of the same default, right, or remedy on a future occasion.

     9.5.  Waiver By Assignor. The Assignor hereby waives presentment, notice of
           ------------------
dishonor, and protest of all instruments included in or evidencing any of the
Obligations or the Collateral, and any and all other notices and demands
whatsoever (except as expressly provided herein or in the Credit Agreement or
for notices required in connection with judicial proceedings).

     9.6.  Notice, etc. All notices, requests, and other communications
           -----------
hereunder shall be made and effective in the manner and at the address set forth
in (S)20 of the Credit Agreement or at such other address as may be set forth or
in a notice from the notifying party to the other parties hereto.

     9.7.  Overdue Amounts. Until paid, all amounts due and payable by the
           ---------------
Assignor hereunder shall be a debt secured by the Collateral and shall bear,
whether
<PAGE>

                                      -15-

before or after judgment, interest at the rate of interest for overdue principal
set forth in the Credit Agreement.

     9.8.  Governing Law; Consent to Jurisdiction.  THIS ASSIGNMENT IS INTENDED
           --------------------------------------
TO TAKE EFFECT AS A SEALED INSTRUMENT AND SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS. The Assignor
agrees that any proceeding for the enforcement of this Assignment may be brought
in the courts of the Commonwealth of Massachusetts or any federal court sitting
therein and consents to the non-exclusive jurisdiction of such court and to
service of process in any such proceeding being made upon the Assignor by mail
at the address specified in (S)9.6. The Assignor hereby waives any objection
that it may now or hereafter have to the venue of any such proceeding or any
such court or that such proceeding is brought in an inconvenient court.

     9.9.  Waiver of Jury Trial.  THE ASSIGNOR HEREBY WAIVES ITS RIGHT TO A JURY
           --------------------
TRIAL WITH RESPECT TO ANY PROCEEDING ARISING OUT OF ANY DISPUTE IN CONNECTION
WITH THIS ASSIGNMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER, OR THE PERFORMANCE OF
ANY SUCH RIGHTS OR OBLIGATIONS.

     9.10. Limitation of Liability. Except as prohibited by applicable law, each
           -----------------------
of the Assignor and assignee waives any right which it may have to claim or
recover in any proceeding referred to in the preceding sentence any special,
exemplary, or punitive damages or any damages other than, or in addition to,
actual or consequential damages. The Assignor (i) certifies that neither the
Assignee nor any representative, agent, or attorney of the Assignee has
represented, expressly or otherwise, that the Assignee would not, in the event
of any proceeding, seek to enforce the foregoing waivers and (ii) acknowledges
that, in entering into the Credit Agreement, and the other Revolver Loan
Documents to which the Assignee is a party, the Assignee is relying upon, among
other things, the waivers and certifications contained in this (S)9.10.

     9.11. Severability and Enforceability. All provisions hereof are severable
           -------------------------------
and the invalidity or unenforceability of any of such provisions shall in no
manner affect or impair the validity and enforceability of the remaining
provisions hereof.

     9.12. Successors and Assigns. This Assignment shall be binding upon the
           ----------------------
Assignor and upon the legal representatives, successors and assigns of the
Assignor and shall inure to the benefit of the Assignee and its successors and
assigns.

     9.13. Counterparts. This Assignment may be executed in any number of
           ------------
counterparts, each constituting an original, but all together one and the same
instrument.

     9.14. Entire Agreement. This Assignment and the Revolver Loan Documents
           ----------------
and any other document executed in connection herewith or therewith express the
entire understanding of the parties with respect to the transactions
<PAGE>

                                      -16-

contemplated hereby. Neither this Assignment nor any terms hereof may be
changed, waived or terminated except by a writing signed by each party hereto.

     9.15. Transitional Arrangements. This Assignment shall amend and restate
           -------------------------
in its entirety the Existing Partnership Assignment Agreement on the Closing
Date. On the Closing Date, the rights and obligations of the respective parties
under the Existing Partnership Assignment Agreement shall be subsumed within and
governed by this Assignment, provided that, the provisions of the Existing
                             -------- ----
Partnership Assignment Agreement shall remain in full force and effect prior to
the Closing Date.
<PAGE>

                                      -17-

     IN WITNESS WHEREOF, the Assignor and the Assignee have executed this
Assignment as of the date first above written, as an instrument under seal.

                                          AMERIKING INDIANA HOLDINGS, INC.

                                          By: /s/ A. Richard Caputo, Jr.
                                              --------------------------
                                              Title: Vice President


                                          FLEET NATIONAL BANK, as Agent

                                          By: /s/ James J. O'Brian
                                              --------------------------
                                              Title: Authorized Officer



     The undersigned, general partner of the Partnership, consents to the
assignment of the limited partnership interest set forth in this Assignment.



                                          NATIONAL RESTAURANT ENTERPRISES, INC.



                                          By: /s/ A. Richard Caputo, Jr.
                                              --------------------------
                                              Title: Vice President