Document:

Exhibit 10.40

                               AMENDMENT
                                  TO
                             LOAN AGREEMENT

     THIS AMENDMENT TO LOAN AGREEMENT  ("Amendment") is made as of October
25, 2001 (the "Effective Date") by and between SHONEY'S PROPERTIES GROUP 6,
LLC, a Delaware limited liability company ("Debtor"), and GE CAPITAL
FRANCHISE FINANCE CORPORATION, a Delaware corporation, successor by merger to
FFCA FUNDING CORPORATION ("FFC").

                         PRELIMINARY STATEMENT

     Debtor and FFC entered into that certain Loan Agreement dated as of
September 6, 2000 (the "Loan Agreement").

     The Loan Agreement provided for FFC to provide the Loans to Debtor for
the Premises, with each Loan to be evidenced by a Note and secured by a first
priority security interest in the corresponding Premises pursuant to a
Mortgage.

     This Amendment to Loan Agreement is being executed and delivered by
Debtor and Trustee pursuant to that Substitution Agreement of even date
herewith made by Debtor and Trustee, among others (the "Substitution
Agreement").  The Substitution Agreement provides for the release of the real
property described on attached Exhibit A (the "Released Premises") from the
provisions of the Loan Agreement and all of the Loan Documents (the
"Release"), pursuant to Section 13.A.(i) of the Loan Agreement.  For purposes
of this Amendment, all capitalized terms used and not otherwise defined
herein shall have the meaning ascribed to such terms as are contained in the
Substitution Agreement and the Loan Agreement.

                              AGREEMENT

     In consideration of the mutual agreements contained herein and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree to amend the Loan Agreement as
follows:

     1. DEFINITIONS.  All references to the Loan Agreement and the Loan
Documents referring to "FFCA", or any other definitions in the Loan Agreement
containing the term "FFCA" in all or part of its defined term, such as "FFCA
Entities", "FFCA Payments", etc., shall be amended to mean and refer to "FFC"
which means GE Capital Franchise Finance Corporation, a Delaware corporation,
and successor by merger to both FFCA Acquisition Corporation and FFCA Funding
Corporation.

     2. DELETION; CONTINUING OBLIGATIONS.

     (i) Pursuant to Section 13.B of the Loan Agreement, on and after the
Effective Date:  the Released Premises shall be deemed, and is hereby,
deleted and removed as one of the Premises for all purposes of the Loan
Agreement; the Released Premises shall be excluded from

the Aggregate Fixed Charge Coverage Ratio requirement set forth in the Loan
Agreement and the Master Lease; the Released Premises shall be excluded from
the definition of "Premises" as that term is defined and used in the Loan
Agreement and other Loan Documents; and other defined terms in the Loan
Agreement and other Loan documents shall be deemed modified to exclude the
corresponding information for the Released Premises, as appropriate.

     (ii) Exhibit A to the Loan Agreement is hereby modified to delete the
address and FFC File Number for the Released Premises.

     (iii) Notwithstanding the deletion and removal of the Released Premises
from the Loan Agreement, this Amendment and such deletion and removal shall
not surrender, relinquish, discharge or release and shall not be interpreted
or construed as modifying, amending, terminating, limiting or affecting in
any manner Debtor's obligations and liabilities to FFC and the other FFC
Entities which have accrued or arisen under the Loan Agreement with respect
to the Released Premises prior to the Effective Date of this Amendment,
including, without limitation, the following (the "Debtor's Continuing
Obligations"):

          (a) the indemnification and hold harmless obligations of Debtor to
the Indemnified Parties, including, without limitation, FFC, set forth in the
Loan Agreement, including, without limitation, the provisions of Section 12
thereof;

          (b) Debtor's obligations and liabilities arising under the Loan
Agreement which have accrued as to the Released Premises prior to the
Effective Date; and

          (c) the provisions of the Loan Agreement which the Loan Agreement
provides shall survive the expiration or termination thereof.

Debtor shall be obligated to pay and perform all of the Debtor's Continuing
Obligations in accordance with the corresponding terms and provisions of the
Loan Agreement.

     3. NO FURTHER AMENDMENTS.  Except as specifically modified, amended or
changed herein in connection with the Release, all terms and provisions of
the Loan Agreement shall remain in full force and effect, unchanged and
unmodified.  Without limiting the generality of the foregoing, the
representations, warranties and covenants of Debtor made in the Loan
Agreement  are hereby restated and affirmed.

     4. COUNTERPARTS.  This Amendment may be executed in one or more
counterparts, each of which shall be deemed an original.

     5. EXHIBIT.  The exhibits attached hereto are incorporated herein by
this reference as though fully set forth herein.

                                    2

     IN WITNESS WHEREOF Debtor and FFC have executed this Amendment as of the
date first above written.

                            GE CAPITAL FRANCHISE FINANCE
                            CORPORATION, a Delaware corporation,
                            successor by merger to FFCA FUNDING
                            CORPORATION

                            By  /s/ Andrew G. Kent
                              -----------------------------------------------
                            Printed Name  Andrew G. Kent
                                        -------------------------------------
                            Its  Senior Vice President, Associate General
                                 Counsel and Assistant Secretary
                               ----------------------------------------------

                            SHONEY'S PROPERTIES GROUP 6, LLC, a
                            Delaware limited liability company

                            By:  Shoney's, Inc., a Tennessee corporation, its
                                 managing member

                            By /s/ F. E. McDaniel, Jr.
                              -----------------------------------------------
                            Printed Name  F. E. McDaniel, Jr.
                                        -------------------------------------
                            Its  Secretary
                               ----------------------------------------------

                                     3

STATE OF ARIZONA    )
                    ) SS.
COUNTY OF MARICOPA  )

     The foregoing instrument was acknowledged before me on October 24,
2001 by Andrew G. Kent, Senior VP, Assistant General Counsel and Assistant
Secretary of GE CAPITAL FRANCHISE FINANCE CORPORATION, a Delaware corporation,
successor by merger to FFCA Funding Corporation, on behalf of the corporation.

                                          /s/ Tammi McNeil
                                          -----------------------------------
                                          Notary Public
My Commission Expires:

4/22/05
----------------------

STATE OF TENNESSEE  )
                    ) SS.
COUNTY OF DAVIDSON  )

     The foregoing instrument was acknowledged before me on October 23, 2001
by F. E. McDaniel, Jr., Secretary of Shoney's, Inc., a Tennessee corporation,
managing member of Shoney's Properties Group 6, LLC, a Delaware limited
liability company, on behalf of the corporation and limited liability
company.

                                          /s/ Monica A. Carlson
                                          -----------------------------------
                                          Notary Public
My Commission Expires:

Jan. 25, 2003
----------------------

                                      4

Exhibit omitted due to immateriality.Exhibit 10.42

        PARTIAL TERMINATION OF MASTER LEASE AND PARTIAL MUTUAL RELEASE

     THIS PARTIAL TERMINATION OF MASTER LEASE AND PARTIAL MUTUAL RELEASE
(this "Partial Termination Agreement") is made and entered into as of October
25, 2001 (the "Effective Date"), by and between SHONEY'S PROPERTIES GROUP 6,
LLC, a Delaware limited liability company ("Lessor"), whose address is 1727
Elm Hill Pike, Nashville, Tennessee 37210, and SHONEY'S, INC., a Tennessee
corporation ("Lessee"), whose address is 1727 Elm Hill Pike, Nashville,
Tennessee 37210.

                                WITNESSETH:

     WHEREAS, Lessor is the owner of that certain real estate legally
described in Exhibit A attached hereto, together with all rights, privileges
and appurtenances associated therewith, and all buildings, fixtures and other
improvements now located thereon (the "Released Premises");

     WHEREAS, Lessor, as lessor, and Lessee, as lessee, entered into that
certain Master Lease dated as of  September 6, 2000, with respect to the
Released Premises and other properties (as amended from time to time, the
"Master Lease");

     WHEREAS, Lessor and Lessee, among others, have entered into that certain
Substitution Agreement of even date herewith (the "Substitution Agreement"),
providing for, among other things, the removal of the Released Premises, but
not any other properties, from the scope and effect of the Master Lease,
effective as of the Effective Date;

     WHEREAS, the parties intend that all of the properties subject to the
Master Lease other than the Released Premises (the "Remaining Premises") will
remain subject to the terms and provisions of the Master Lease (as the same
may be modified or amended as a result of this Partial Termination
Agreement); and

     WHEREAS, Lessor and Lessee desire to partially terminate the Master
Lease solely as to the Released Premises and all of their rights and
obligations as to the Released Premises, except as otherwise set forth in
this Partial Termination Agreement.

     NOW, THEREFORE, in consideration of the mutual agreements contained
herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Lessor and Lessee agree as
follows:

     1. As to the Released Premises only, the Master Lease is hereby
terminated as of the Effective Date; provided, however, such partial
termination shall not be construed or interpreted as: (a) terminating,
limiting or affecting in any manner the obligations and liabilities of Lessee
pursuant to the Master Lease as to the Remaining Premises, and such
obligations under the Master Lease as to the Remaining Premises shall survive
any partial cancellations or partial termination of the Master Lease and the
Master Lease shall remain in full force and effect as to such Remaining
Premises and shall survive the execution and delivery of the Substitution
Agreement and all instruments contemplated thereby, except that the partial
termination shall cause an adjustment in the amount of the Base Annual Rental
and Additional Rental from the

amounts otherwise payable in accordance with the terms of the Master Lease as
follows:  The term "Base Annual Rent" shall mean One Million One Hundred
Eighty-Six Thousand Three Hundred Ninety-Nine and 92/100 Dollars
($1,186,399.92); or (b) modifying, amending, terminating, limiting or
affecting in any manner the obligations and liabilities of Lessee pursuant to
the Master Lease as set forth in the following Section 2.

     2. As to the Released Premises only, Lessee hereby surrenders,
relinquishes and releases unto Lessor all of its right, title and interest in
and to the Master Lease and the Released Premises, and in consideration of
the release of the remainder of the term of the Master Lease as it pertains
to the Released Premises and other good and valuable consideration, Lessor
hereby agrees that Lessee shall be discharged, relieved and released from any
liability for rents or other charges and all other Master Lease obligations
arising and accruing with respect to the Master Lease as to the Released
Premises only from and after the Effective Date; provided, however, such
partial surrender, relinquishment, discharge and release shall not be
interpreted or construed as modifying, amending, terminating, limiting or
affecting in any manner (the "Continuing Obligations"):

          (i) Lessee's obligations and liabilities arising under the Master
Lease which have accrued as to the Released Premises prior to the Effective
Date;

          (ii) Lessee's indemnification and hold harmless obligations to
Lessor set forth in Section 19 of the Master Lease as to the Released
Premises; and

          (iii) any obligations and liabilities of Lessee to Lessor which
have accrued prior to the Effective Date that are contained in any estoppel
certificate relating to the Released Premises delivered by Lessee to Lessor
under the Master Lease.

As to the Released Premises, Lessee shall be obligated to pay and perform all
of the Continuing Obligations in accordance with the corresponding terms and
provisions of the Master Lease.

     3. Lessee agrees to and does hereby release and discharge Lessor, its
employees, officers, directors, shareholders, agents, representatives,
affiliates, successors and assigns, as applicable (collectively, the
"Released Parties"), from all claims, and demands of any nature (known or
unknown, matured or unmatured) whatsoever which Lessee may now have or
hereafter have or claim to have against any of the Released Parties with
respect to the Master Lease and/or the Released Premises, whether arising on,
prior to or after the Effective Date, except as expressly set forth in the
Substitution Agreement.

     4. Pursuant to Section 1 of this Partial Termination Agreement, upon the
execution and delivery of this Partial Termination Agreement by the parties,
the parties acknowledge and agree that this partial termination shall have no
effect on the Remaining Premises and/or the Master Lease as it applies to
such Remaining Premises and an appropriate notation of the removal of the
Released Premises shall be made by Lessor to Exhibit A and Exhibit A-1 of the
Master Lease and Lessee shall be deemed to request Lessor to make such
notation, deleting the Released Premises from such Exhibit A and Exhibit A-1
and thereafter no further amendment, modification or change shall be required
to be made to the Master Lease.

                                     2

     5. This Partial Termination Agreement sets forth all of the terms,
conditions and understandings between Lessor and Lessee with respect to the
partial termination of the Master Lease, and there are no terms, conditions
or understandings, either oral or written, between the parties hereto with
regard to the partial termination of the Master Lease other than as set forth
herein.  No alteration, amendment, change or addition to this Partial
Termination Agreement shall be binding unless reduced to writing and signed
by all of the parties hereto.

     6. This Partial Termination Agreement shall inure to the benefit of and
be binding upon the parties hereto and their respective successors and
assigns.

     7. This Partial Termination Agreement may be executed in one or more
counterparts, each of which shall be deemed an original.

                [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                     3

     IN WITNESS WHEREOF, Lessor and Lessee have caused this Partial
Termination Agreement to be duly executed as of the Effective Date.

                                LESSOR:

                                SHONEY'S PROPERTIES GROUP 6, LLC, a
                                Delaware limited liability company

                                By: Shoney's, Inc., a Tennessee corporation,
                                    its managing member

                                By  F. E. McDaniel, Jr.
                                   ------------------------------------------
                                Printed Name  F. E. McDaniel, Jr.
                                            ---------------------------------
                                Its  Secretary
                                   ------------------------------------------

                                LESSEE:

                                SHONEY'S, INC., a Tennessee corporation

                                By /s/ F. E. McDaniel, Jr.
                                  -------------------------------------------
                                Printed Name  F. E. McDaniel, Jr.
                                            ---------------------------------
                                Its  Secretary
                                   ------------------------------------------

                                    4

STATE OF TENNESSEE
COUNTY OF DAVIDSON

     Before me, the undersigned, a Notary Public of the state and county
mentioned, personally appeared F. E. McDaniel, Jr., with whom I am personally
acquainted (or proved to me on the basis of satisfactory evidence), and who,
upon oath, acknowledged himself to be the Secretary of Shoney's, Inc., a
Tennessee corporation and the managing member of Shoney's Properties Group 6,
LLC, the within named bargainor, a Delaware limited liability company, and
that he as such Secretary of the managing member of Shoney's Properties Group
6, LLC, executed the foregoing instrument for the purpose therein contained,
by personally signing the name of Shoney's Properties Group 6, LLC, by
himself as Secretary of the managing member.

     Witness my hand and seal, at office in Nashville, Tennessee this 23 day
of October, 2001.

                                            /s/ Monica A. Carlson
                                            ---------------------------------
                                            Name: Monica A. Carlson
                                                 ----------------------------
                                            Notary Public
                                                             [SEAL]
My Commission Expires: Jan. 25, 2003
                      --------------------

STATE OF TENNESSEE
COUNTY OF DAVIDSON

     Before me, the undersigned, a Notary Public of the state and county
mentioned, personally appeared F. E. McDaniel, Jr., with whom I am personally
acquainted (or proved to me on the basis of satisfactory evidence), and who,
upon oath, acknowledged himself to be the Secretary of Shoney's, Inc., the
within named bargainor, a corporation, and that he as such Secretary,
executed the foregoing instrument for the purpose therein contained, by
personally signing the name of the corporation by himself as Secretary.

Witness my hand and seal, at office in Nashville, Tennessee this 23 day of
October, 2001.

                                            /s/ Monica A. Carlson
                                            ---------------------------------
                                            Name: Monica A. Carlson
                                                 ----------------------------
                                            Notary Public

                                                          [SEAL]
My Commission Expires: Jan. 25, 2003
                      --------------------

                                     5

Exhibit omitted due to immateriality.

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