In April of this year the Board of Directors voted to increase its holdings in Kokopelli through an offer of $250,000 to the other 50% holder of Kokopelli. Contingent upon the closing Franchise Capital sold 10% of their holdings to a franchisee in Phoenix for $50,000 which in turn was used as the down payment. As per the sales agreement the remaining $200,000 will be paid quarterly over three years.

Edward C. Heisler, Franchise Capital Corporation President and CEO stated, "Over the past few months we have worked very hard to complete this goal. Increasing our holdings in Kokopelli is a huge accomplishment for Franchise Capital and its shareholders. Kokopelli is already the most valuable company in our portfolio. It's awesome that we have increased those holdings to 90%. At the current rate of franchise sales I feel confident our portfolio will only continue to grow in value."

About Franchise Capital Corporation:

Franchise Capital Corporation is a Business Development Company pursuant to Section 54 of the Investment Company Act of 1940. The company currently has five operating, synergistic investments holdings: Kokopelli's Mexican Grill Franchise Company, LLC; Cousin Vinnie's Franchise Company, LLC; Kirby Foo's Asian Grill Franchise Company, LLC; Comstock Jake's Franchise Company, LLC; and Fathom Business Systems, Inc., all of which are engaged in business related to restaurant franchise development.

Safe Harbor Statement: The statements in this release that relate to future plans, expectations, events, performance, and the like are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Actual results or events could differ materially from those described in the forward-looking statements due to a variety of factors, including those set forth in the company's report on Form 10-KSB for fiscal year 2004 filed with the Securities and Exchange Commission.

Source: Business Wire