BALTIMORE, Sept. 16, 2002 (PRIMEZONE) -- Alpha Phi Alpha Fraternity, Inc., the nation's oldest fraternity established for college-educated African American men and Church's Chicken(TM), one of the world's largest quick-service chicken restaurant concepts, are taking on an historic initiative to stimulate economies in underserved communities by offering franchising opportunities to members of the fraternal organization.
Announced at Alpha Phi Alpha's 2002 economic development conference in Las Vegas, this first-of-its-kind agreement calls for the development of 20 Church's Chicken franchise restaurants over the next five years. The franchises initially are planned for the Washington, DC; Baltimore, MD; Cleveland, OH; Cincinnati, OH; and Columbus, OH metropolitan areas. Each location would be owned and operated by members and investment groups within the fraternity and the community at large.
"We have the power to make a difference in our individual communities," stated Harry Johnson, Alpha Phi Alpha National President. "Through financial support, business training and education, coupled with the backing of the Small Business Administration (SBA), we will be offering individuals an opportunity to create jobs in areas in need of economic stimulation."
The overall goal of Alpha Phi Alpha and Church's Chicken is to identify persons possessing keen business acumen and quick-service restaurant experience and assist them by providing the training, development and other resources needed to open a successful restaurant franchise.
"We see this as a wonderful opportunity to deepen our involvement in the communities we serve," said Hala Moddelmog, Church's Chicken President. "Alpha Phi Alpha will be an important conduit for sourcing future franchise partners to Church's and because of their long-standing tradition of leadership and excellence, I'm confident this partnership will be extraordinarily successful," added Moddelmog.
Supported by the SBA, the program also will offer participants the opportunity to receive business development training from that agency. Upon course completion, SBA trainees will have access to an 85% financial guarantee on any business loan taken out to fund their franchise. According to SBA Michigan Director Eugene Cornellus, the added incentive will encourage individuals who might lack initial resources to pursue ownership options through this program.
"President Bush has encouraged us (the SBA) to identify and assist qualified individuals who may need additional support in reaching their entrepreneurial endeavors," stated Cornellus. "This unique marriage between the non-profit, corporate and governmental structures of our society is a fulfillment of the President's vision of economic empowerment for all Americans in the new millennium."
Founded on December 4, 1906 at Cornell University in Ithaca, NY, Alpha Phi Alpha has continued to supply voice and vision to the struggle of African-Americans and people of color around the world, through civil rights, educational enhancement and leadership by example. The Fraternity has long stood at the forefront of the African-American community's fight for equal rights through leaders such as W.E.B. DuBois; Adam Clayton Powell, Jr.; Martin Luther King, Jr.; Thurgood Marshall; Paul Robeson; and many others. True to its form as the "firsts of firsts," Alpha Phi Alpha has been interracial since 1945.
Church's Chicken, a division of AFC Enterprises, Inc. (Nasdaq:AFCE), focuses on serving high quality food at a value price while utilizing its new tagline, Full Flavor, Full Pockets, Full Life(TM). Menu specialties include Southern-style chicken and side items such as corn on the cob, okra, mashed potatoes and gravy, and signature Honey Butter biscuits. Church's Chicken has more than 1,500 locations worldwide driving system-wide sales of approximately $900 million in 2001. Visit Church's Chicken on the World Wide Web at www.churchs.com.
MEDIA NOTES: Harry Johnson, President of Alpha Phi Alpha and Hala Moddelmog, Church's Chicken President are available for interviews. To arrange for Alpha Phi Alpha, please contact Jennifer Devlin at 202-414-0786 (jdevlin@susandavis.com) or Kim Brock at 202-414-0773 (kbrock@susandavis.com). To arrange for Church's Chicken, please contact Bob Jimenez at 770-350-3828 (rjimenez@afce.com).
Forward-Looking Statement: Certain statements in this release, and other written or oral statements made by or on behalf of AFC or its brands, are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the cost and availability of our principal food products, labor shortages or increased labor costs, our ability to franchise new units and expand our brands, our and our franchisees' ability to successfully operate existing units and open new units, changes in consumer preferences and demographic trends, competition, general economic, political and regulatory conditions and the risk factors detailed in our Annual Report on Form 10-K for the year ended December 30, 2001 and the other documents we file with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements, since those statements speak only as of the date they are made.