Document:

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                                                                 EXHIBIT 10.27

                               FRANCHISE AGREEMENT

THIS FRANCHISE AGREEMENT ("AGREEMENT"), entered into on this 7th day of January,
2005 by and between BACK YARD BURGERS, INC., a Delaware corporation
("Franchisor"), with its principal place of business at 1657 Shelby Oaks Drive,
Suite #105, Memphis, Tennessee 38134 and WILLIAM N. GRIFFITH ("Franchisee[s]"),
whose principal place of business is 2770 Tugboat Lane, #104, Cordova, TN 38016.

                               W I T N E S S E T H

         WHEREAS, Franchisor has created a method for establishing and operating
quick-service restaurants which are known as Back Yard Burgers(R) restaurants
and has also created a system for the establishment and operation of such
restaurants selling standardized menu items (the "System"), all of which is set
out in the Franchise Administration Manual and the Restaurant Operations Manual
(hereinafter collectively the "Manuals"), which are loaned to the Franchisee for
the duration of this Agreement; and

         WHEREAS, Franchisor has, by considerable expenditure, created
substantial goodwill associated with its marks described hereinafter; and

         WHEREAS, Franchisee desires to operate a Back Yard Burgers(R)
restaurant (the "Restaurant") in a certain territory hereinafter defined (the
"Territory"); and

         WHEREAS, Franchisee desires to use the System and trademarks and/or
trade names "Back Yard Burgers(R)", the logo associated with the name "Back Yard
Burgers(R)" (an outdoor grill with flames emanating therefrom) and other
trademarks now or hereafter owned and used by Franchisor in the operation of
restaurants (hereinafter collectively the "Marks");

         NOW, THEREFORE, in consideration of the mutual promises, and covenants
herein contained, the parties hereto agree as follows:

1. GRANT OF RIGHT.

         (a)      Franchisor grants to Franchisee the right to open and operate
                  a Restaurant in the Territory using the System and the Marks.

         (b)      Franchisee agrees to use the System and the Marks in the
                  manner prescribed by Franchisor.

         (c)      Franchisee agrees to use the Marks only in accordance with the
                  provisions of this Agreement and the Manuals, and to notify
                  Franchisor of any improper use of the Marks by others of which
                  Franchisee becomes aware. Franchisee shall not use any of the
                  Marks as part of its corporate name, other business name or
                  internet domain name, whether alone or in prefix, suffix, or
                  in combination with other

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                  modifying words, without the prior written permission of
                  Franchisor. Any and all goodwill associated with the Marks,
                  including any goodwill which might be deemed to have arisen
                  through Franchisee's activities, shall inure directly and
                  exclusively to the benefit of Franchisor, and Franchisee shall
                  not at any time acquire any rights in the Marks. Franchisee
                  further agrees that it will not challenge Franchisor's
                  ownership of the Marks, and that it will not register or
                  attempt to register the Marks in its own name or that of any
                  other firm, person or corporation. If requested by Franchisor,
                  Franchisee will assign to Franchisor any domain name
                  registrations which contain one or more of the Marks.

         (d)      The license granted by this Agreement does not include the
                  right to operate mobile units, trailers, concessions, and/or
                  catering off the premises of the Restaurant; however, if you
                  obtain our specific prior written permission, you will be
                  allowed to prepare product for off-premise sales. All such
                  off-premise operations by Franchisee shall be subject to and
                  in accordance with the terms and provisions of this Agreement
                  and the Manuals.

2.       TERRITORY. Franchisor agrees that, during the term of this Agreement,
         it will not sell or establish any other franchised or company-owned
         Restaurant or any other restaurant which sells hamburgers and/or
         chicken sandwiches in the following territory: A site to be determined
         with a one (1) mile exclusive radius (the "Territory"), except in or in
         conjunction with any military installation, zoo, amusement park, or
         stadium/arena/coliseum. Franchisee expressly acknowledges and agrees
         that Franchisor shall retain the exclusive right to sell within the
         Territory in grocery stores, specialty shops, or other non-restaurant
         retail outlets both food and non-food products (now existing or
         hereafter developed) bearing one or more of the Marks. This Agreement
         applies only to the Territory.

3. COVENANTS OF FRANCHISOR

         (a)      Franchisor will provide, without charge and at a training
                  facility designated by Franchisor, Franchisee and/or employees
                  designated by Franchisee with an approximate eight-week
                  training session which will include classroom as well as
                  "on-the-job" training. Franchisee shall be responsible for its
                  travel and room and board expenses incurred in connection with
                  training and the cost of uniforms. Franchisee or Franchisee's
                  representative must successfully complete training, and three
                  of its restaurant managers must be certified by Franchisor
                  prior to commencement of operations by Franchisee.

         (b)      Franchisor shall furnish Franchisee with copies of the Manuals
                  which set forth the standard operating policies and procedures
                  of Franchisor.

         (c)      Franchisor will provide site guidance to Franchisee by
                  delivering suggested dimensions and design plans for the
                  Restaurant. Franchisors acceptance of the site does not
                  guarantee the success of the location.

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                  Franchisor will provide Franchisee with prototypical
                  construction documents indicating the site and construction
                  work required. Determination that these documents are in
                  compliance with any local statutes, ordinances, codes, or
                  regulations is the responsibility of Franchisee. Franchisor
                  shall provide consultation regarding preparation of actual
                  construction documents at no additional charge. Franchisor
                  will assist Franchisee and Franchisee's consultants in the
                  selection of a general contractor by providing guidelines and
                  suggested stipulations to be included in agreements between
                  Franchisee and its general contractor. Franchisor will
                  periodically review the progress of the Restaurant
                  development. The actual day-to-day supervision of the
                  Restaurant development shall be the responsibility of
                  Franchisee.

         (d)      Franchisor will perform lease or purchase agreement review and
                  will provide guidance in negotiations of such agreements.
                  However, it is strongly recommended that Franchisee have such
                  documents examined by legal counsel or other competent advisor
                  prior to their execution. Franchisor disavows any
                  responsibility for the legality or contents of such agreement
                  or any of those documents referenced in paragraph 3(c) hereof.

         (e)      Franchisor will furnish Franchisee with lists of equipment,
                  supplies, and other items which are to be utilized in the
                  operation of the Restaurant. Franchisor will also assist in
                  locating sources of supply for all such items. Currently,
                  Franchisee is required to purchase three items from
                  Franchisor, namely, Miz Grazi's Hot Sauce(TM), Back Yard
                  Burgers(R) Lemon Butter Spice Packs, and Back Yard Burgers(R)
                  Blackened Seasoning. Formulas for these items are "trade
                  secrets" of Franchisor (or its suppliers) and any substitution
                  therefore would substantially alter the recognized taste and
                  presentation of products in which these items are used.
                  Additional proprietary items may be introduced in the future
                  which Franchisee will be required to purchase from Franchisor
                  or its designated suppliers. Franchisee is further required to
                  use certain brands of products in the preparation of products
                  for sale. Franchisor believes that, because of national
                  contract pricing, those required brands will be competitively
                  and reasonably priced. Franchisee is not required to purchase
                  any other items from Franchisor or its designated suppliers.
                  In any event, all items utilized in the Restaurant must meet
                  the quality standards of Franchisor. Franchisor will permit
                  Franchisee to obtain equipment, fixtures, supplies, and other
                  services from sources of Franchisee's choice provided that the
                  chosen suppliers meet the Franchisor's quality, service,
                  safety and health standards, and have the capacity to supply
                  Franchisee's requirements. Additionally, any such supplier
                  must demonstrate sound financial condition and business
                  reputation, and must supply to a sufficient number of
                  franchisees of Franchisor to enable Franchisor economically to
                  monitor compliance with Franchisor's standards,
                  specifications, and requirements.

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         (f)      Prior to commencement of operations of the Restaurant,
                  Franchisor will send a representative to the Restaurant
                  premises to perform a final inspection, including equipment
                  check-out, proper stocking of goods and materials, staffing,
                  sign installation, landscaping, fixtures and the actual
                  building structure, and to conduct an overall review of the
                  plans to begin operations. In the event that all conditions
                  necessary to commence operations have been met, the Franchise
                  Representative will issue a written opening authorization
                  ("Opening Authorization") to the Franchisee which shall
                  certify Franchisor's approval for the Franchisee to open for
                  business. Should any items be noted as deficient or improperly
                  prepared, the Franchisee will be required to correct
                  satisfactorily such items prior to commencing actual
                  operations. In addition, Franchisor will have its New Store
                  Opening Team at the Restaurant to assist Franchisee in hiring,
                  training, opening, and operating the restaurant for at least
                  the first five (5) days of operations.

         (g)      Following commencement of operations, a Franchisor
                  representative will make periodic visits to the Restaurant.
                  Periodically, the Franchisor representative will make a
                  written inspection report of the physical condition, and
                  Franchisee's performance of all primary aspects of the
                  Restaurant business. Copies of these reports will be furnished
                  to the Franchisee, or manager designated by the Franchisee.
                  Any deficiencies or any violations of the Agreement or the
                  Manuals noted in the report must be corrected. Failure to make
                  such corrections can result in termination of this Agreement
                  pursuant to Paragraph 7 hereof.

4. COVENANTS OF FRANCHISEE.

         (a)      Simultaneously with the execution of this Agreement Franchisee
                  shall pay Franchisor a franchise fee of Twenty Five Thousand
                  Dollars ($25,000.00). This fee is non-refundable.

         (b)      Franchisee agrees to submit to Franchisor a site selected for
                  the Restaurant as soon as practicable, but in no event more
                  than 120 days following the execution of this Agreement.
                  Franchisee further agrees that commencement of retail
                  operations of the Restaurant shall begin not more than 270
                  days following the execution of this Agreement.

                  Franchisee shall provide Franchisor with complete engineering
                  surveys of the selected site prepared by an engineer or
                  surveyor currently licensed in the state in which the site is
                  located. Franchisee may use the above prototypical
                  construction documents to convey the intent of Franchisor to
                  its architects and engineers who shall be currently licensed
                  in the state in which the Restaurant is to be constructed.
                  Franchisee shall have actual construction documents prepared
                  by such duly licensed professionals for use in obtaining
                  competitive bids, securing required permits, constructing the
                  project, ascertaining in consultation with professional
                  consultants the suitability of the soil and subsurface
                  conditions of the site for placement of the construction shown
                  on the prototype construction documents,

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                  and modifying the prototype design as necessary to comply with
                  local statute, ordinances, regulations and codes.

         (c)      Franchisee agrees to pay Franchisor a royalty of four percent
                  (4%) of the gross receipts (less sales tax) derived from all
                  sales of goods (whether food or non-food) and services made
                  by, at or from the Restaurant, including, but not limited to,
                  catering and off-premises sales ("Gross Receipts"). Such
                  royalty payments shall be made on a weekly basis (accounting
                  period Sunday through Saturday) and forwarded by mail so as to
                  arrive at Franchisor's headquarters within seven (7) days of
                  each Saturday. Failure to pay royalties as herein called for
                  can result in cancellation of this Agreement as provided
                  below.

         (d)      Franchisee agrees to maintain books and records of all
                  operations of the Restaurant and to make such books and
                  records available to Franchisor for inspection. Franchisor
                  reserves the right to have such books and records of the
                  Restaurant audited. Should such audit result in the
                  determination that reports to Franchisor have been understated
                  by an amount exceeding 1%, then the Franchisee shall pay for
                  all audit costs incurred and royalties owing plus interest at
                  the maximum rate allowable by applicable law.

         (e)      Franchisee agrees to spend a sum equal to not less than two
                  percent (2%) of gross receipts (less any sales tax) on local
                  promotion and advertising such as radio, television,
                  Duratrans, banners, other point-of-purchase materials,
                  printing of coupons, direct mail, and other collateral
                  materials. Franchisor will furnish suggested promotional
                  programs and advertisements, and Franchisee may prepare its
                  own. All advertisements and promotions must have prior written
                  approval from Franchisor.

                  In addition, Franchisor shall have the right at any time, and
                  from time to time, to create Co-op Advertising Regions. If and
                  when Franchisor creates a Co-op Advertising Region for the
                  region in which the Franchisee's Restaurant is located,
                  Franchisee shall become a member thereof and participate
                  therein. The size and content of such regions, when and if
                  established by the Franchisor, shall be binding upon
                  Franchisee and all other Back Yard Burgers franchisees
                  similarly situated who are required by the terms of their
                  franchise agreements to so participate. At all meetings of
                  such Co-op Advertising Region each participating Franchisee,
                  and Franchisor, shall be entitled to one (1) vote for each of
                  its Restaurants located within such Co-op Advertising Region.
                  Twenty percent (20%) of the eligible member votes, or
                  Franchisor by itself, may call a meeting of all members of a
                  Co-op Advertising Region. All matters concerning operation of
                  a Co-op Advertising Region shall be decided by majority vote,
                  provided that a quorum is present, and such vote shall bind
                  all members of said region, including Franchisor. For purposes
                  hereof, a quorum shall consist of members entitled to cast at
                  least 50% of the total number of votes in such Co-operative
                  Advertising Region. Upon the approval of at least a majority
                  of the votes represented by all of

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                  the members of the Co-op Advertising Region, the Co-op
                  Advertising Region members may vote to require each member to
                  contribute up to, but not greater than, six percent (6%) and
                  not less than one percent (1%) of the Gross Receipts (less
                  sales tax) of all such member's Restaurants in said Co-op
                  Advertising Region for a regional co-op advertising program or
                  programs. In the event of approval of such additional regional
                  advertising contributions as aforesaid, each franchisee,
                  including Franchisee, and Franchisor, shall contribute to the
                  Co-op Advertising Region in accordance with said vote.
                  Expenditures made by Franchisee pursuant to any Co-op
                  Advertising Region program shall be credited against
                  Franchisee's local advertising requirement described in
                  Paragraph 4(e) above. Notwithstanding any contrary provision
                  hereinabove, Franchisor shall have the right to approve the
                  content of all advertising and promotional materials of the
                  Co-op Advertising Region.

                  Franchisor may require all of its Franchisees to participate
                  periodically in certain national marketing promotions.

         (f)      Franchisee agrees to contribute to a National Advertising Fund
                  (the "Fund") which shall be administered by Franchisor.
                  Contributions shall be in an amount equal to one percent (1%)
                  of the Gross Receipts. Payments to the Fund shall be made on a
                  weekly basis and submitted along with royalty payments.
                  Franchisor shall apply at least fifty percent (50%) of
                  contributions to the creation of marketing tools, such as
                  advertising copy for use on local radio and television, ad
                  slicks, four-color art, design, and other collateral pieces.
                  As a general rule, Franchisor will not use the Fund for the
                  purchase and placement of media advertising. Franchisee agrees
                  that Franchisor shall be authorized to spend the remaining
                  funds on such items as new product testing and development,
                  market research, improvements in operating methods and
                  techniques, or for other such purposes that Franchisor shall
                  deem to be in the interest of improving operations and
                  earnings of Restaurants. Franchisor shall furnish Franchisee
                  with a yearly report of the status of the Fund which shall
                  disclose contributions made and uses thereof. Franchisor shall
                  make contributions on behalf of its company-owned Restaurants
                  at the same rate as required of Franchisee herein.

         (g)      Franchisee shall submit for review a weekly Form 45 and a
                  monthly profit and loss statement to Franchisor together with
                  all other reports as required by the Manuals.

         (h)      Franchisee agrees to operate the Restaurant and the off
                  premises operations in accordance with all standards,
                  specifications, methods, techniques, and procedures set forth
                  in the Manuals which may be amended, replaced, and
                  supplemented from time to time by Franchisor.

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         (i)      Franchisee agrees to obtain and maintain in full force during
                  the term of this Agreement or any renewal hereof an insurance
                  policy or policies affording at least the following coverage:

         (1)      (A)      Commercial General Liability with a general aggregate
                           limit (other than products-completed operations) of
                           $1,000,000.00.
                  (B)      Products-Completed Operations aggregate limit of
                           $1,000,000.00.
                  (C)      Personal and Advertising Injury limit of
                           $1,000,000.00.
                  (D)      Each occurrence limit of $1,000,000.00.
                  (E)      Fire damage limit (any one fire) of $50,000.00.
                  (F)      Umbrella Liability over the above with a $1,000,000
                           limit, thereby providing total coverage of
                           $2,000,000.

         (2)      (A)      Liability coverage shall include the above, and
                           i)  blanket contractual liability, and
                           ii) broad form property damage
                  (B)      Non-owned automobiles limit of $1,000,000.00.
                  (C)      Hired automobiles limit of $1,000,000.00.

         (3)      Workmen's Compensation in the amount required by applicable
                  law.

                  It is suggested the building, contents, and equipment be
                  insured at replacement cost. All such required policies shall
                  name Franchisor an additional insured against any loss,
                  liability, or expense arising or occurring in connection with
                  the Franchisee's operation of the Restaurant. Franchisee must
                  provide Franchisor with a certificate of insurance evidencing
                  satisfaction of the above requirements. All such policies
                  shall include a provision that the issuer shall give
                  Franchisor not less than 30 days prior written notice of
                  cancellation of said policies.

         (j)      Should the Restaurant close for any reason relating to natural
                  disaster, accident or other unforeseeable events, Franchisee
                  will vigorously pursue reopening at the same or a new
                  location. If Franchisee has not resumed operations within a
                  period of one hundred eighty (180) days from the time of
                  closing, this Agreement shall be canceled by Franchisor unless
                  Franchisor in its sole discretion has granted a written
                  extension because of unusual circumstances beyond the control
                  of the Franchisee that have resulted in undue delay.

         (k)      Franchisee agrees to operate the Restaurant in compliance with
                  all federal, state, and local laws and regulations and shall
                  obtain all permits, certificates, and licenses necessary for
                  proper operation of the business.

         (l)      Franchisee agrees, to the extent permitted by applicable law,
                  to indemnify and hold harmless Franchisor and its officers,
                  employees, agents, successors and assigns (collectively,
                  "Indemnitees") from any liability or damage Indemnitees may
                  incur, including reasonable attorneys', experts' and
                  accountants' fees, as a

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                  result of claims, demands, costs of judgments, of any kind or
                  nature, by anyone whomsoever, arising out of, or otherwise
                  connected with, the ownership, maintenance or operation of the
                  Restaurant by Franchisee; any Agreement breaches by the
                  Franchisee; and/or any act or omission of the Franchisee or
                  any of its employees, agents or suppliers.

         (m)      Royalty or National Advertising Fund fees provided for in this
                  agreement respectively in Paragraphs 4(c) and 4(f) which are
                  not received within thirty (30) days of the payment due date
                  shall be charged interest on all past due balances at the rate
                  of 1% monthly or the highest amount permitted under applicable
                  law, whichever is less.

         (n)      Franchisor shall have the right, but not the obligation, at
                  any time during the Term hereof (as hereinafter defined) to
                  require Franchisee to instruct its bank to pay the amounts
                  identified in Paragraphs 4(c) and 4(f) hereof directly to
                  Franchisor from Franchisee's account, by such automatic
                  payment mechanism as Franchisor may reasonably designate and
                  upon the terms and conditions set forth herein. Upon
                  Franchisor's written notice of such election, Franchisee shall
                  so instruct its bank.

5.       TERM.  The term of this Agreement is for ten (10) years from the date
         of execution (the "Term"). Franchisee may renew this Agreement for
         successive five (5) year periods by providing written notice of intent
         to renew to Franchisor and executing the then-current franchise
         agreement not less than one hundred twenty (120) days prior to
         expiration of the existing term and submitting with such written notice
         a renewal fee of One Thousand Dollars ($1,000.00), provided that (a)
         there is no material non-compliance or default by Franchisee at the
         time such notice is given or upon the expiration of the existing term,
         and (b) prior to giving written notice of intent to renew, Franchisee
         shall have modernized, or contracted to modernize within a reasonable
         time, the Restaurant and its premises including, but not limited to,
         the building, signs, equipment, decor, and furnishings, if applicable,
         so as to reflect the then-current image required by Franchisor.

6. TRANSFERABILITY OF INTERESTS.

         (a)      Neither any interest in the Restaurant nor any rights under
                  this Agreement may be sold, assigned, transferred, conveyed,
                  given away, or disposed of in any manner without the prior
                  written consent of Franchisor, provided, however, that
                  Franchisee is granted the right to assign this Agreement to a
                  corporation solely owned by Franchisee. If Franchisee is a
                  corporation, partnership, unincorporated association or
                  similar entity, the terms of this paragraph 6 shall apply to
                  any sale, resale, pledge, assignment, transfer or encumbrance
                  of the voting stock of, or other ownership interest in,
                  Franchisee, which alone or together with other related,
                  previous, simultaneous or proposed transfers, would result in
                  a change of control of Franchisee.

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                  Any proposed transfer other than to a corporation solely owned
                  by Franchisee is subject to the following conditions:

                  1.       Franchisee must be in substantial compliance with the
                           terms and conditions of this Agreement.

                  2.       The proposed transferee must meet all qualifications
                           imposed upon new franchisees by Franchisor at the
                           time the proposed transfer is to take place.

                  3.       Franchisor has determined not to exercise its right
                           of first refusal as specified in paragraph 6(b) of
                           this Agreement.

                  4.       Transferee must execute the then-current franchise
                           agreement.

                  5.       A transfer fee of $1,000.00 shall be paid to
                           Franchisor. The transfer fee shall be paid at the
                           time the transferee executes the franchise agreement.

         (b)      With respect to a proposed transfer by Franchisee of any right
                  or interest which requires the prior written consent of
                  Franchisor, Franchisor shall have the right within 30 days to
                  match any bona fide offer of purchase, for the price and on
                  the terms and conditions contained in such bona fide offer.
                  The thirty-day period shall commence upon receipt by
                  Franchisor of a copy of such written offer of purchase. Should
                  Franchisor elect not to express its right of first refusal,
                  Franchisee may proceed with the transfer provided Franchisor
                  approves the prospective buyer. Such approval shall not be
                  unreasonably withheld.

         (c)      In the event of the death or disability of the Franchisee,
                  Franchisor shall consent to the transfer of the interest to
                  Franchisee's spouse, heirs, or relative, by blood or by
                  marriage, whether such a transfer is made by Will or by
                  operation of law if, at the sole discretion and judgment of
                  Franchisor, such person or persons obtaining said interest
                  shall be capable of conducting said business in a manner
                  satisfactory to Franchisor. In the event Franchisor does not
                  consent to such transfer, Franchisee's rights hereunder shall,
                  at Franchisor's option, terminate. This paragraph shall only
                  apply to the extent Franchisee owns the rights hereunder
                  personally and has not assigned such rights to a corporation,
                  limited liability company, partnership, or any other entity.

         (d)      In the event of new ownership or change of personnel, the new
                  franchisee and/or its designated employees must complete the
                  training program prescribed by Paragraph 3(a) hereof.

         (e)      This agreement is fully transferable by Franchisor.

7.       TERMINATION. The following shall constitute events of default under
         this Agreement and are good and sufficient cause for Franchisor to
         cancel this Agreement.

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         (a)      AUTOMATIC TERMINATION BY FRANCHISOR. Franchisor shall
                  automatically terminate this Agreement without any notice or
                  action required by Franchisor under the following
                  circumstances:

                  (i)      Insolvency of Franchisee or, unless otherwise
                           prohibited by law, upon the filing by Franchisee of
                           any proceeding under the Bankruptcy Act or any
                           similar state insolvency act or upon the filing of
                           any involuntary petition against Franchisee under any
                           such laws which is not dismissed within thirty (30)
                           days after filing; or

                  (ii)     Franchisee has made a general assignment for the
                           benefit of creditors; or

                  (iii)    A receiver shall be appointed by any court for
                           Franchisee; or

                  (iv)     The assignment or transfer or attempt to assign or
                           transfer any interest in the Restaurant or this
                           Agreement by Franchisee without the prior written
                           approval of Franchisor whenever such approval is
                           required.

         (b)      TERMINATION BY FRANCHISOR ON IMMEDIATE NOTICE. Franchisor may
                  terminate this Agreement on immediate notice to Franchisee and
                  without giving Franchisee any opportunity to cure the event of
                  default under the following circumstances:

                  (i)      Franchisee duplicates any portion of the System in
                           any food service outlet not franchised by Franchisor;
                           or

                  (ii)     Franchisee has knowingly maintained false books and
                           records, has knowingly submitted false reports to
                           Franchisor, or has submitted false information in
                           connection with the original application to
                           Franchisor.

                  (iii)    If in the judgment of Franchisor reasonably
                           exercised, the continued operation of the Restaurant
                           would result in imminent danger to public health or
                           safety; or

                  (iv)     Franchisee violates or is convicted of violating any
                           federal, state, or local law or any administrative
                           regulation materially applicable to the operation of
                           the Restaurant.

         (c)      TERMINATION BY FRANCHISOR ON TEN (10) DAYS NOTICE. Franchisor
                  may terminate this Agreement by giving Franchisee ten (10)
                  days written notice under the following circumstances:

                  (i)      Franchisee has failed to remain open for business or
                           has abandoned the Restaurant for more than three (3)
                           business days other than for reasons of casualty or
                           circumstances beyond the control of Franchisee; or

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                  (ii)     Franchisee has failed to cure to Franchisor's
                           satisfaction within ten business days following
                           written notice by Franchisor to submit required
                           reports including, but not limited to, Form 45's as
                           required by Paragraph 4(g) hereof and monthly profit
                           and loss statements as required by Paragraph 4(g)
                           hereof.

                  (iii)    Franchisor may terminate this Agreement upon
                           Franchisee's failure to cure to Franchisor's
                           satisfaction, within ten (10) days following written
                           notice by Franchisor, any default in payment of the
                           royalties or other sums owed to Franchisor pursuant
                           to this Agreement.

         (d)      TERMINATION BY FRANCHISOR ON THIRTY (30) DAYS NOTICE.
                  Franchisor may terminate this Agreement upon Franchisee's
                  failure to cure to Franchisor's satisfaction, within thirty
                  (30) days following written notice by Franchisor, any of the
                  following:

                   (i)     Any other violations of this Agreement or one or more
                           of the Manuals.

                  (ii)     Franchisee's denial, obstruction, or restriction of
                           Franchisor's right to inspect the Restaurant, receive
                           samples for testing, or examine any of Franchisee's
                           business records applicable to the Restaurant.

                  (iii)    Franchisee's refusal to participate in certain
                           national marketing programs as required by Paragraph
                           4(e) hereof.

                  (iv)     Franchisee's failure on three or more occasions
                           within any twelve-month period to comply with the
                           provisions of this Agreement or the Manuals whether
                           or not such failures have been corrected after notice
                           [the provisions of this paragraph 7(d)(4) are
                           inapplicable unless Franchisor shall have given
                           Franchisee notice of each such failure].

8.       OBLIGATIONS OF THE FRANCHISEE AFTER TERMINATION. Upon expiration or
         termination of this Agreement, including voluntary termination by
         Franchisee, Franchisee shall have the immediate obligation to:

         (a)      Relinquish all interest of every kind and description in the
                  franchise granted hereunder;

         (b)      Pay within fifteen (15) days to Franchisor any royalties,
                  fees, and/or other monies owed by Franchisee to Franchisor;

         (c)      Not own, maintain, operate, engage in, or have any interest in
                  a restaurant with a fast food format, with or without a drive
                  through, that offers charbroiled hamburgers, charbroiled
                  chicken breast, hand-dipped milk shakes, and seasoned

                                       11
<PAGE>

                  french fries within ten miles of the former franchisee's
                  former franchise location or locations or locations of any
                  other franchise or company-owned restaurants for a period of
                  one year after the date of termination of the franchise
                  agreement;

         (d)      Surrender all copies of any of the Manuals, and any other
                  materials bearing the Marks; and, at Franchisor's request,
                  cancel or assign to Franchisor any domain name registration
                  which contains, or would likely be confused with, one or more
                  of the Marks.

         (e)      Comply with the provisions of Paragraphs 9 and 14 of this
                  Agreement;

         (f)      Remove all signs, canopy, and other items from the Restaurant
                  premises necessary to insure that it does not continue to
                  resemble a Back Yard Burgers restaurant;

         (g)      Allow a final inspection of the Restaurant premises and
                  business records of the Restaurant; and

         (h)      Release to Franchisor all telephone numbers used in listing or
                  advertising under the Marks.

9.       NONCOMPETITION. The Franchisee acknowledges that, pursuant to this
         Agreement, Franchisee will receive valuable specialized training,
         confidential information, and trade secrets, including, without
         limitation, the contents of the Manuals, and information regarding the
         operational, sales, promotional, and marketing methods and techniques
         all of which are owned by Franchisor as part of the System and are
         collectively hereinafter referred to as "Confidential Information." In
         consideration for the use and license of the Confidential Information,
         Franchisee agrees that it shall not, during the term of this Agreement
         and for a period of one (1) year from termination, transfer, or
         expiration of this Agreement, either directly, or indirectly, for
         itself, or through, on behalf of, or in conjunction with, any person,
         persons, partnership, or corporation:

         (a)      divert or attempt to divert any business or customer of the
                  Restaurant to any competitor, by direct or indirect inducement
                  or otherwise, or do or perform, directly or indirectly, any
                  other act injurious or prejudicial to the goodwill associated
                  with the names and marks and other proprietary rights of
                  Franchisor;

         (b)      employ or seek to employ any person who is at the time
                  employed by Franchisor or by another franchisee of Franchisor,
                  or otherwise directly or indirectly induce any such person to
                  leave his or her employment;

         (c)      own, maintain, operate, engage in, or have any interest in any
                  business which sells goods or services of a like competitive
                  nature, more specifically, hamburger or chicken sandwich
                  restaurants, and which is located within ten (10) miles of the
                  protected territory of any company-owned or franchised
                  Restaurant. This subsection shall not apply to ownership by
                  Franchisee as a passive investor of less

                                       12
<PAGE>

                  than five percent (5%) interest in a publicly-held corporation
                  listed on a national stock exchange or traded on the
                  over-the-counter market.

         Franchisee expressly acknowledges that it possesses skills and
         abilities of a general nature and has other opportunities for
         exploiting such skills. Therefore, enforcement of the covenants made by
         Franchisee herein will not deprive it of its personal goodwill or
         ability to earn a living. In the event that a court of competent
         jurisdiction determines that the provisions of this paragraph 9 are
         unreasonably broad or of unreasonable duration, the restrictions
         contained in this paragraph shall be reduced to the longest period and
         the largest geographical area which such court deems reasonable under
         the circumstances.

         Franchisee will cause its general partners, officers, directors and
         management employees to execute non-competition agreements containing
         the same provisions as those contained in this paragraph 9.

10.      INDEPENDENT CONTRACTOR. Franchisee and Franchisor recognize that each
         is an independent contractor and in no way an agent, servant,
         fiduciary, or employee of the other.

11.      INTERPRETATION. This agreement shall be interpreted according to the
         internal laws of the State of Tennessee without regard to its conflict
         of law provisions.

12.      BINDING EFFECT. This Agreement shall be binding upon the parties
         hereto, their respective heirs, successors, assigns, or legal
         representatives.

13.      SEVERABILITY; WAIVER. Any provision of this Agreement deemed to be
         invalid shall be severable and will be automatically modified to the
         extent necessary to make it valid. No waiver of any provisions herein
         contained shall be construed as a waiver of any subsequent breach of
         the same or any other covenant or provision.

14.      CONFIDENTIALITY. Franchisee agrees that, during the term of this
         Agreement and thereafter for the longest time permitted by applicable
         law, it will preserve the confidentiality of the Confidential
         Information. Franchisee shall comply with all instructions in the
         Manuals for preserving the confidentiality of Confidential Information.
         Franchisee shall use Confidential Information only in furtherance of
         this Agreement, shall divulge Confidential Information only to its own
         employees or representatives who need to know the same to discharge
         their responsibilities in connection with the Restaurant, and shall,
         upon termination of this Agreement, return to Franchisor all
         Confidential Information fixed in any tangible medium of expression
         (within the meaning of the U.S. Copyright Act), now known or later
         developed. Franchisee will require its general partners, officers,
         directors and management employees, as well as any other persons to
         whom any Confidential Information is disclosed, to execute
         Confidentiality Agreements containing the same provisions as are
         contained in this Section 14. Franchisee agrees that Franchisor shall
         be entitled to injunctive relief to enforce these confidentiality
         provisions.

                                       13
<PAGE>

15.      FORUM SELECTION CLAUSE, WAIVER OF RIGHT TO JURY TRIAL, AND WAIVER OF
         CLAIMS FOR PUNITIVE DAMAGES. The Franchisee and Franchisor hereby
         mutually agree that this franchise agreement was negotiated, in its
         entirety or in part, at Franchisor's headquarters in Memphis,
         Tennessee, was accepted in Memphis, Tennessee, and that any and all
         disputes either arising out of the franchise agreement or out of the
         transactions and relationships between the parties, shall be brought in
         the Chancery or Circuit Court of Tennessee for the Thirtieth Judicial
         District at Memphis, which shall have exclusive jurisdiction to hear
         the claims of the parties. Franchisee and Franchisor further agree to
         waive their rights, if any, to trial by jury. Franchisee and Franchisor
         further agree to waive their claims, if any, for punitive damages.

16.      ATTORNEYS' FEES. Owner agrees that in the event that Back Yard Burgers
         is forced to incur costs, including attorneys' fees, to enforce
         compliance with this agreement or is forced to defend lawsuits or other
         claims brought by owner, owner will pay Back Yard Burgers its costs,
         including reasonable attorneys' fees incurred.

17.      EARNINGS CLAIMS. Franchisee confirms that no officer, director, sales
         person, or other representative of Franchisor has made any claims,
         promises or forecasts regarding sales, earnings, break-even points, or
         potential profits relative to the ownership of a Back Yard Burgers
         franchise.

18.      ENTIRE AGREEMENT. This instrument constitutes the entire agreement
         between the parties. There are no other covenants, promises or
         agreements, written or oral, not set forth herein except for such other
         Agreements that may be executed concurrently herewith. No covenant or
         provision of this Agreement may be changed or modified, unless it is in
         writing and with the mutual consent of both parties hereto. Franchisee
         has reviewed this Agreement in its entirety and understands its
         contents.

19.      NOTICE. All notices, offers, acceptances, waivers and other
         communications made with respect to this Agreement shall be in writing,
         and shall be deemed to have been both given and received when delivered
         to the party in person or, if mailed, when deposited (i) in the U.S.
         Mails, by certified mail, postage prepaid, with return receipt
         requested, or (ii) with any nationally known commercial delivery
         service (such as Federal Express), third party at the address set forth
         in the first paragraph of this Agreement or to such other address as
         any party, by notice to all others, may designate from time to time.

                                       14
<PAGE>

IN WITNESS WHEREOF the parties hereto have executed this Agreement in duplicate.

                                            WILLIAM N. GRIFFITH, FRANCHISEE

                                            By: /s/ William N. Griffith
                                                --------------------------------

                                            Witness: /s/ Michael G. Webb
                                                     ---------------------------
                                            Date: January 7, 2005
                                                  ------------------------------

ACCEPTED AT MEMPHIS, TENNESSEE THIS 7TH DAY OF JANUARY, 2005.

                                            BACK YARD BURGERS, INC., FRANCHISOR

                                            By: /s/ Lattimore M. Michael
                                                --------------------------------
                                                   Lattimore M. Michael

                                            Title: Chief Executive Officer
                                                   -----------------------------

                                            Witness: /s/ Michael G. Webb
                                                     ---------------------------
                                            Date: January 7, 2005
                                                  ------------------------------

                                       15

<PAGE>

                                   ADDENDUM 1

                                    TERRITORY

       The first sentence of Section 2 of this Agreement is hereby deleted and
replaced with the following:

         Franchisor agrees that, during the term of this Agreement, it will not
sell or establish any other franchised or company-owned Restaurant or any other
restaurant which sells hamburgers and/or chicken sandwiches in the following
territory: Sites to be determined within Williamson County and Travis County,
Texas with a one (1) mile exclusive radius (the "Territory"), except in or in
conjunction with any military installation, zoo, amusement park, or
stadium/arena/coliseum.

                                       16
<PAGE>

                                   ADDENDUM 2

                             COVENANTS OF FRANCHISOR

         Section 3, part (d) of this Agreement is hereby deleted and replaced
with the following:

"(d) Prior to commencement of operations of the Restaurant, Franchisor may, at
its sole discretion, send a representative to the Restaurant premises to perform
a final inspection, including equipment check-out, proper stocking of goods and
materials, staffing, sign installation, landscaping, fixtures and the actual
building structure, and to conduct an overall review of the plans to begin
operations. In the event that all conditions necessary to commence operations
have been met, the Franchise Representative will issue a written opening
authorization ("Opening Authorization") to the Franchisee which shall certify
Franchisor's approval for the Franchisee to open for business. Should any items
be noted as deficient or improperly prepared, the Franchisee will be required to
correct satisfactorily such items prior to commencing actual operations.
Franchisor will have its New Store Opening Team at the first Franchisee
Restaurant to assist Franchisee in hiring, training, opening, and operating the
restaurant for at least the first five (5) days of operations. No such support
will be provided for any additional Franchisee Restaurants."

         Immediately after Section 3, part (g) of this Agreement, the following
is inserted:

"(h) For a period of two years beginning with the commencement of operations of
the Franchisee's first Restaurant, Franchisor agrees to spend one percent (1%)
of taxable sales to market the Franchisee's first Restaurant."

                                       17
<PAGE>

                                   ADDENDUM 3

                             COVENANTS OF FRANCHISEE

         Section 4, parts (a) and (b) of this Agreement are hereby deleted and
replaced with the following:

20. COVENANTS OF FRANCHISEE.

         (a)      Simultaneously with the execution of this Agreement Franchisee
                  shall pay Franchisor a franchise fee of Five Thousand Dollars
                  ($5,000.00). This fee is non-refundable.

         (b)      Franchisee agrees to submit to Franchisor a site selected for
                  the Restaurant as soon as practicable, but in no event more
                  than 120 days following the termination of the Consulting
                  Services Agreement. Franchisee further agrees that
                  commencement of retail operations of the Restaurant shall
                  begin not more than 270 days following the termination of the
                  Consulting Services Agreement.

                                       18<PAGE>

                                                                 EXHIBIT 10.28

                           AREA DEVELOPMENT AGREEMENT

         THIS AREA DEVELOPMENT AGREEMENT ("Agreement") is entered into as of the
7th day of January, 2005 by and between BACK YARD BURGERS, INC. ("Franchisor"),
and William N. Griffith ("Developer[s]").

                                    RECITALS

         A.       The Franchisor is the owner of the trade name and service mark
                  "BACK YARD BURGERS," certain valuable trade practices, and all
                  of the recipes, formulae, operating procedures, exclusive
                  systems, methods, techniques, designs, trademarks, service
                  marks, copyrights, manuals, training materials, and all other
                  items now or hereafter owned, used or provided by the
                  Franchisor (collectively "Trade Practices") in connection with
                  the retail sale of BACK YARD BURGERS franchises.

         B.       BACK YARD BURGERS, INC. ("Franchisor") operates and franchises
                  a number of drive-through and dine-in hamburger restaurants
                  under the trade name "BACK YARD BURGERS" which are operated in
                  accordance with the uniform standards of operation, including
                  without limitation, design of building, layout of equipment,
                  interior and exterior decoration, signs, operating methods,
                  menus, advertising, sales techniques, personnel management and
                  bookkeeping and accounting systems ("BACK YARD BURGERS
                  System").

         C.       Developer desires to obtain from the Franchisor a grant of the
                  exclusive right to develop and operate a number of BACK YARD
                  BURGERS Restaurants.

                           The grant pertains to Williamson County and Travis
                  County, Texas. The parties hereto desire to provide for such
                  grant upon the terms and conditions set forth herein.

         NOW, THEREFORE, in consideration of the mutual covenants and promises
hereinafter contained herein, Franchisor and Developer agree as follows:

         1. GRANT OF DEVELOPMENT RIGHTS

                  A.       The Franchisor hereby grants to Developer during the
                           term of this agreement the exclusive right to open
                           and operate BACK YARD BURGERS Restaurants
                           ("Restaurant[s]") or ("Unit[s]") under the
                           development schedule set forth in attached Addendum
                           1, incorporated herein by reference ("Development
                           Schedule, Division of Territory and Map"). Developer
                           shall be required and hereby agrees to open
                           additional BYB units under the following conditions;
                           unless otherwise agreed upon:

                           (1)      A minimum of one (1) unit per each 70,000
                                    population increase in the territory as
                                    reported by the U.S. Census Bureau;

                           (2)      Provided that, the increases occur after the
                                    Developer has met and

                                       1
<PAGE>

                                    finished the terms and time of the
                                    Development Schedule and, such unit
                                    increases are established within the time
                                    limitations of the Franchise Agreement and
                                    any renewal periods.

                  B.       The right of the developer to develop each Restaurant
                           is contingent upon Developer not being in default
                           under this Agreement, and in substantial compliance
                           with the terms and conditions of the Franchise
                           Agreements to which Developer is a party. Developer
                           must have opened and be operating all Restaurants
                           required by the Development Schedule.

                  C.       This Agreement is not a Franchise Agreement, and does
                           not grant to Developer any right to use Back Yard
                           Burgers Trade Practices, nor the Back Yard Burgers
                           System. Developer shall have no right under this
                           Agreement to license others to use the Trade
                           Practices or Back Yard Burgers System.

2. DEVELOPMENT FEE

         In consideration of the rights granted herein to Developer, Developer
shall pay the franchisor upon the execution hereof a Development fee of Five
Thousand Dollars ($5,000.00) per unit allocated to Developer under the
Development Schedule. The Development fees shall be fully earned by the
Franchisor upon execution hereof and is not refundable; provided, however that,
upon execution of the Franchise Agreement for each unit, the Franchisor shall
credit Developer $5,000.00 towards the franchise fee for that unit.

3. TERM

         The term of this Agreement shall be for a period of ten (10) years
commencing on the date hereof unless extended, or sooner terminated by the
Franchisor as provided for in this Agreement. Developer shall have such option
to renew and extend the term of each individual franchise agreement as is
provided for thereunder.

4. TERRITORY

         Exclusive Territory. During the term of this Agreement and any
extension hereof, the Franchisor shall not own, operate or grant a franchise for
any other Back Yard Burgers Restaurant within the following described territory:

                   Williamson County and Travis County, Texas
except in or in conjunction with any military installation, zoo, or amusement
park. A map showing the Territory is attached hereto and incorporated herein as
Addendum 1, Page 12 If Developer fails to meet a requirement of the Development
Schedule, the Franchisor may develop a Restaurant or grant a franchise for a
Restaurant within the Territory, but not within the protected territory of any
of Developer's Restaurants, or restaurant sites approved by the Franchisor as
such territory is described in the respective franchise Agreement unless such
failure is due to fire, flood, earthquake or other similar causes beyond the
Developer's control.

                                       2

<PAGE>

5. FRANCHISE AGREEMENTS

         Developer may only develop a Restaurant hereunder by executing a
Franchise Agreement with Franchisor ("Franchise Agreement") for such Restaurant,
to be located at site approved by Franchisor as provided therein. The Franchise
Agreement for each Restaurant developed under the Development Schedule shall be
the form of the Franchise Agreement then being offered by Franchisor which will
be substantially in the form provided as Exhibit D to the Uniform Franchise
Offering Circular. Such Franchise Agreement shall not be effective unless
executed by Franchisor; Franchisor need not execute a Franchise Agreement if
Developer is then in default under any provision hereof.

6. INITIAL FRANCHISE FEE

         For each Restaurant to be developed pursuant to the terms hereof,
Developer shall pay to Franchisor at the earlier of a.) submitting the building
plan to state or local regulatory authorities for approval, b.) the signing of
the property lease, c.) closing on the property, d.) or the signing of the
Franchise Agreement, a Franchise fee of Twenty-Five Thousand Dollars
($25,000.00) for the first franchise, and Twenty-Two Thousand Dollars
($22,000.00) for subsequent franchises developed under this Agreement. This fee
shall be fully earned upon execution of the Franchise Agreement, and will be
non-refundable. Franchisor shall credit Developer $5,000.00 towards the
Franchise fee for each unit developed, per paragraph 2 of this Agreement.

7. RESTAURANT OPERATION

         Each Restaurant to be developed by Developer must be opened and
operated in accordance with and pursuant to the respective Franchise Agreement.
Developer's rights with respect to each Restaurant will be governed by the
Franchise Agreement for each restaurant.

8. TERMINATION

         A.       Termination at end of term. This Agreement shall terminate as
                  to all parties at the end of the term hereof if not renewed
                  pursuant to the provisions of Paragraph 3.

         B.       Termination For Good Cause. This Agreement shall not be
                  terminated except for good cause. The occurrence of any of the
                  following events shall constitute good and sufficient cause
                  for Franchisor, at its absolute option and without prejudice
                  to any other rights or remedies provided for hereunder or by
                  law or equity, to terminate this Agreement:

                  1.  Immediately and without an opportunity to cure as follows:

                           (a)      If Developer shall be adjudicated bankrupt,
                                    or if any proceeding by or against Developer
                                    or his corporation is instituted under any
                                    section of the Bankruptcy Act, or if a
                                    receiver (permanent or temporary) of
                                    Developer's property or any part thereof is
                                    appointed by a court of competent authority;
                                    if Developer or his corporation

                                       3
<PAGE>

                                    makes a general assignment for the benefit
                                    of creditors, or if a final judgment remains
                                    unsatisfied of record for thirty (30) days
                                    or longer (unless a supersede as bond is
                                    filed) or if execution is levied against
                                    Developer's business or property, or suit to
                                    foreclose any lien or mortgage against the
                                    restaurant or equipment is instituted
                                    against Developer and not dismissed or
                                    stayed within thirty (30) days.

                           (b)      The Franchisor and Developer agree in
                                    writing to terminate the Agreement;

                           (c)      The Developer makes any material
                                    misrepresentations relating to the
                                    acquisition of the Development Agreement or
                                    the Developer engages in conduct which
                                    reflects materially and unfavorably upon the
                                    operation and reputation of the franchise
                                    business or system;

                           (d)      The Developer on three or more occasions
                                    within a one year period fails to comply
                                    with one or more requirements of this
                                    Agreement, or any Franchise Agreement,
                                    whether or not corrected after notice;

                           (e)      The Developer is convicted of a felony or
                                    any other criminal misconduct which is
                                    relevant to the operation of the business;

                           (f)      Developer's voluntary abandonment of any of
                                    the Restaurants except for reasons beyond
                                    Developer's control.

                  2.       Unless otherwise provided herein, after an
                           opportunity to cure as follows:

                           (a)      The Developer fails to pay any fees or other
                                    amounts due to the Franchisor within ten
                                    (10) days after receiving written notice
                                    that such fees are overdue;

                           (b)      If the Developer fails, for a period of
                                    fifteen (15) days after notification of
                                    noncompliance, to comply with any federal,
                                    state or local law or regulation applicable
                                    to the operation of the business; and

                           (c)      If Developer violates any other term or
                                    condition of this Agreement or any Franchise
                                    Agreement and Developer fails to cure such
                                    violation within thirty (30) days after
                                    written notice from Franchisor to cure same.

         C.       Monetary Obligations. In the event of termination of this
                  Agreement in its entirety, Franchisor may retain all fees paid
                  pursuant to this Agreement. In addition, all obligations of
                  Franchisor to Developer and all rights of Developer under this
                  Agreement shall then terminate; however, any obligations of
                  Developer

                                       4
<PAGE>

                  to take, or abstain from taking, any action upon termination
                  pursuant to this Agreement shall not be affected by such
                  termination, including the payment to Franchisor of all sums
                  earned and due from Developer at the time of termination. No
                  franchise fees or sums defined in this agreement which are
                  unearned at the time of termination shall be payable beyond
                  the termination date.

9. ASSIGNMENT BY DEVELOPER

         A.       Restriction on Transfer. This Agreement is personal to
                  Developer and shall not be assigned, either voluntarily or by
                  operation of law, except as provided herein, without the prior
                  written consent of Franchisor, which consent shall not be
                  unreasonably withheld. No partial assignment of this Agreement
                  shall be allowed. No assignment may be made to a corporation
                  or control transferred to anyone through the sale of corporate
                  shares either voluntarily or by operation of law, except as
                  provided herein, except Developer retains at least fifty-one
                  percent (51%) ownership of said corporation, without the prior
                  written consent of Franchisor, which consent shall not be
                  unreasonably withheld.

         B.       Corporation as Proposed Assignee. If the proposed assignee is
                  a corporation, Franchisor shall have the right in its' sole
                  discretion, as a condition to granting its consent, to require
                  responsible officers and principal shareholders of the
                  corporation to guarantee the performance of the corporation
                  hereunder.

         C.       Other Agreements. If Franchisor consents to the assignment of
                  this Agreement, it shall also consent to the assignment of any
                  and all other agreements between Franchisor, its affiliates
                  and Developer in connection with the Restaurants. Developer,
                  in the event of assignment of this Agreement, shall also
                  assign all leases and other agreements in connection with the
                  Restaurants to the same assignee.

         D.       Execution of Then-Current Agreements. In any approved sale or
                  assignment of this Agreement, the assignee shall complete and
                  sign all appropriate forms and agreements required by
                  Franchisor, including assignments of each Franchise Agreement
                  then in effect. The term to be conveyed to any purchaser or
                  assignee shall be the balance of the term of this Agreement as
                  to each Restaurant unless otherwise agreed upon by Franchisor.
                  The assignee and/or assignee's managerial employees will be
                  required to fulfill all of the Franchisor's training
                  requirements before operating any of the Restaurants.

         E.       Void Assignments. Any purported assignment of this Agreement
                  without the written consent of Franchisor shall be void and
                  any such attempt to assign or transfer this Agreement shall be
                  a breach hereof.

         F.       Franchisor's Right of First Refusal Regarding the Development
                  Agreement. Prior to the sale or assignment by Developer of
                  this Agreement in a transaction requiring Franchisor's
                  consent, Franchisor shall have the option, exercisable within
                  thirty (30) days after receipt

                                       5
<PAGE>

                  of notice from Developer of the proposed sale or assignment,
                  to purchase Developer's rights under this Agreement for the
                  price and on the terms and conditions of the proposed sale.
                  Such notice shall specify the name and address of the proposed
                  purchaser, and shall set forth the price, terms, conditions,
                  and date and place of closing of the proposed sale. Should
                  Franchisor not exercise this right and should the contemplated
                  sale not be completed, or should the terms and conditions
                  thereof be altered in any way, this right of first refusal
                  shall be reinstated and any subsequent proposed sale, or the
                  altered terms and conditions of the current transaction, must
                  again be offered to Franchisor in accordance with this
                  Section.

         G.       Release of Franchisor. Upon consent of Franchisor to any
                  assignment, Developer shall bring all accounts with Franchisor
                  current and shall execute a general release of all claims
                  against Franchisor.

10. DEATH OR DISABILITY OF DEVELOPER

         In the event of the death or disability of the Developer, Franchisor
shall consent to the transfer of the interest to Developer's spouse, heirs, or
relative, by blood or by marriage, whether such a transfer is made by Will or by
operation of law if, at the sole discretion and judgment of Franchisor, such
person or persons obtaining said interest shall be capable of conducting said
business in a manner satisfactory to Franchisor. In the event Franchisor does
not consent to such transfer, Franchisee's rights hereunder shall, at
Franchisor's option, terminate. This paragraph shall only apply to the extent
Developer owns the rights hereunder personally and has not assigned such rights
to a corporation, limited liability company, partnership, or any other entity.

11. IN-TERM COMPETITION

         During the term of this Agreement neither Developer nor his employees,
without Franchisor's written approval, shall own, maintain, operate, engage in,
or have any interest in any business which sells goods or services of a like
competitive nature, more specifically, hamburger or chicken sandwich
restaurants, and which is located within ten (10) miles of the protected
territory of any company-owned or franchised Restaurant. This subsection shall
not apply to ownership by Franchisee as a passive investor of less than five
percent (5%) interest in a publicly-held corporation listed on a national stock
exchange or traded on the over-the-counter market.

12. EMPLOYMENT OF FRANCHISOR'S EMPLOYEES

         Developer agrees that without the express written approval of
Franchisor, he shall not employ, nor seek to employ, any full or part-time
employee of Franchisor and will not, directly or indirectly, induce any such
person to leave his or her employment as aforesaid. This prohibition, shall
likewise apply to all such employees whose employment has been terminated, for
any reason, with Franchisor for a period of less than four (4) months prior to
being hired by Developer.

                                       6
<PAGE>

13. FRANCHISOR RESTAURANTS

         Developer acknowledges, approves, and consents to Franchisor having the
absolute right to own and operate or sell as many Restaurants as Franchisor, in
its sole discretion, may decide. Developer agrees not to raise any objections to
such Restaurants, nor to interfere in any way with their operation or management
by Franchisor, provided such Restaurants are not located within Developer's
Territory, except such Restaurants as Franchisor may develop pursuant to
Paragraphs 4 and 9 of this Agreement.

14. FRANCHISOR'S AND DEVELOPER'S RIGHT OF FIRST REFUSAL REGARDING RESTAURANTS

         If Franchisor or Developer desires to sell, assign or transfer its
rights in any Restaurant located within the Territory, it shall first notify the
other in writing of its intent to sell, assign, or transfer said rights upon the
same terms and conditions to the other, who shall then have thirty (30) days
after receipt within which to review and accept or reject the written offer;
provided, however, that if additional information is requested, it shall have
ten (10) days from receipt of the additional information to make its decision.
If the offer has not been accepted within thirty (30) days of receipt of the
offer or ten (10) days from receipt of additional information, whichever is
longer, the sale to the prospective purchaser, assignee or transferee may be
concluded.

15. INSURANCE, CONDEMNATION

         A.       Liability, Fire, Business Interruption, and Worker's
                  Compensation Insurance. During the term hereof, in the event
                  Developer obtains a Restaurant site by purchase or executed
                  lease prior to execution of a Franchise Agreement covering
                  such site, Developer shall obtain and maintain for such site
                  insurance coverage in accordance with Franchisor's current
                  insurance requirements for Franchisees. The coverage shall
                  also comply with the requirements of Developer's lease, if
                  any, for such site. Developer shall carry also such Workers'
                  Compensation insurance as may be required by applicable law.
                  Upon execution of a Franchise agreement covering the site,
                  Developer shall maintain insurance covering the site, in
                  accordance with the applicable provisions of such Franchise
                  Agreement.

         B.       Conditions of Coverage. Franchisor shall be named as an
                  additional insured, to the extent of its interest, on all of
                  such policies and shall be provided with certificates of
                  insurance evidencing such coverage. All public liability and
                  property damage policies shall contain a provision that
                  Franchisor, although named as an insured, shall nevertheless
                  be entitled to recover under such policies on any loss
                  occasioned to it, its affiliates, agents and employees by
                  reason of the negligence of Developer, its principals,
                  contractors, agents or employees. All policies shall provide
                  Franchisor with at least thirty (30) days notice of
                  cancellation or termination of coverage. Franchisor reserves
                  the right to specify reasonable changes in the types and
                  amounts of insurance coverage required by this Section. Should
                  Developer fail or refuse to procure the required insurance
                  coverage from an insurance carrier acceptable to Franchisor or
                  to maintain it as required hereby, Franchisor may procure such
                  coverage for Developer, in which event Developer agrees to pay
                  the required premiums or to reimburse Franchisor upon
                  Franchisor's demand. Failure to maintain the required
                  insurance or to promptly reimburse Franchisor for any premiums
                  paid on behalf of Developer by Franchisor shall constitute a
                  default hereunder.

                                       7
<PAGE>

16. RELATIONSHIP OF THE PARTIES

         Developer is and shall be an independent contractor. No employee of
Developer shall be deemed to be an employee of Franchisor. Nothing herein
contained shall be construed to create a partnership, joint venture or agency
between Developer and Franchisor.

         Neither party hereto shall be liable for the debts or obligations of
the other unless expressly assumed in writing.

17. NOTICE

         All notices under this Agreement shall be in writing and shall be
delivered by personal service, or by certified or registered mail, postage
prepaid, return receipt requested, to the parties.

18. HEIRS AND SUCCESSORS

         This Agreement shall be binding upon and inure to the benefit of the
parties, their heirs, successors, and assigns.

19. WAIVER

         Failure by either party to enforce any rights under this Agreement
shall not be construed as a waiver of such rights. Any waiver, including waiver
of default, in any one instance shall not constitute a continuing waiver or a
waiver in any other instance. Any acceptance of money or other performance by
Franchisor from Developer shall not constitute a waiver of any default except as
to the payment of the particular payment or performance so received.

20. ATTORNEY'S FEE

         If any action or proceeding is brought for the enforcement of this
Agreement, or because of an alleged dispute, breach, default or
misrepresentation in connection with any of the provisions of this Agreement, or
to interpret this Agreement or any of the provisions hereof, the successful or
prevailing party shall be entitled to recover reasonable attorneys fees and
other costs incurred in that action or proceeding, whether or not said action or
proceeding goes to final judgment, in addition to any other relief to which it
or they may be entitled.

21. GOVERNING LAW

         This Agreement shall be interpreted according to the internal laws of
the State of Tennessee without regard to its conflict of law provisions.

                                       8
<PAGE>

22. ENTIRE AGREEMENT

         This Agreement represents the entire understanding between the parties
and supersedes all other negotiations, agreements, representations and
covenants, oral or written, except any other agreement executed by the
Franchisor, and Developer in connection herewith. This Agreement may not be
modified except by a written instrument signed by all the parties hereto.

         Developer acknowledges and agrees that Franchisor has made no promises
or warranties to Developer concerning the profitability or of success of the
franchised business to be developed. Developer acknowledges that it has been
informed by Franchisor that there can be no guaranty of success in such
business. No other agreements, representations, promises, commitments or the
like, of any nature, exist between the parties except as set forth or otherwise
referenced herein.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                                 FRANCHISOR:
                                                 BACK YARD BURGERS, INC.
                                                 A DELAWARE CORPORATION

                                                 By: /s/ Lattimore M. Michael
                                                     --------------------------
                                                Title: Chief Executive Officer
                                                       ------------------------

                                                Witness: /s/ Michael G. Webb
                                                        ------------------------
                                                 Date: January 7, 2005
                                                       -------------------------

                                                 DEVELOPER:
                                                 William N. Griffith

                                                 By: /s/ William N. Griffith
                                                     ---------------------------

                                                 Witness: /s/ Michael G. Webb
                                                         -----------------------

                                                 Date: January 7, 2005
                                                       -------------------------

                                       9

<PAGE>

                                   ADDENDUM 1

                              DEVELOPMENT SCHEDULE,
                          DIVISION OF TERRITORY AND MAP

         (A) TERRITORY:

                   Williamson County and Travis County, Texas

<TABLE>
<CAPTION>

                                                           Total Units Operating
          Date                                               at End of Period
         <S>                                               <C>
         270 days after the termination/expiration of the
            Consulting Services Agreement                          1 Unit
         06/30/07                                                  2 Units
         12/31/07                                                  3 Units
         12/31/08                                                  5 Units
         12/31/09                                                  7 Units
         12/31/10                                                  9 Units
         12/31/11                                                  10 Units

</TABLE>

All locations shall be constructed according to the above schedule and the store
type limitations apply to each of the listed territories.

                  (B) GOVERNING LAW, JURISDICTION AND VENUE

                  1.       The provisions of the Area Development Agreement
                           concerning governing law, jurisdiction and venue
                           shall not constitute a waiver of any right conferred
                           upon Texas law. Tennessee law governs this agreement.
                           Jurisdiction and venue shall be in Tennessee.

         (C)      DIVISION OF TERRITORY

                  The exclusive territory is delineated on the map (Page 11)
                  attached hereto and incorporated herein, as set forth in
                  Section 4 Paragraph A. The territory is defined as

                   Williamson County and Travis County, Texas

                                       10
<PAGE>

                                   ADDENDUM 2

                                 DEVELOPMENT FEE

         Section 2 of this Agreement is herby deleted in its entirety and
replaced by the following:

     "2. DEVELOPMENT FEE

         Developer will not be required to pay any Development fees to the
Franchisor."

                                       11

<PAGE>

                                   ADDENDUM 3

                              INITIAL FRANCHISE FEE

         Section 6 of the Agreement is herby deleted in its entirety and
replaced by the following:

"6. INITIAL FRANCHISE FEE

For each Restaurant to be developed pursuant to the terms hereof, Developer
shall pay to Franchisor at the earlier of a.) submitting the building plan to
state or local regulatory authorities for approval, b.) the signing of the
property lease, c.) closing on the property, d.) or the signing of the Franchise
Agreement, a Franchise fee of Five Thousand Dollars ($5,000.00) for the first
franchise, Zero Dollars ($0.00) for the second franchise, and Twenty-Two
Thousand Dollars ($22,000.00) for each of the eight subsequent franchises
developed under this Agreement. This fee shall be fully earned upon execution of
the Franchise Agreement, and will be non-refundable.

                                       12
<PAGE>

                                   ADDENDUM 4

                             COVENANTS OF FRANCHISOR

The Company agrees to amend Section 3 item (h) of the Franchise Agreement for
the second franchise (once executed) to read as follows:

"(h) For a period of two years beginning with the commencement of operations of
the Franchisee's second Restaurant, Franchisor agrees to spend one percent (1%)
of taxable sales to market the Franchisee's second Restaurant."

                                       13

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