Annual Report

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Form 10-K

Brand Profiles

      Popeyes® Chicken & Biscuits. Founded in New Orleans, Louisiana in 1972, our Popeyes brand is renowned for its signature spicy and mild fried chicken and its Louisiana inspired side items. As of December 29, 2002, there were 1,712 Popeyes restaurants worldwide. Whether measured by number of QSRs or system-wide sales, Popeyes is currently the second largest chicken QSR concept in the world.

      As of December 29, 2002, Popeyes restaurants were located in 42 states, the District of Columbia, Puerto Rico and 19 foreign countries. Our 96 company-operated Popeyes restaurants were concentrated in Georgia, Louisiana, North Carolina, South Carolina and Tennessee. Over 70% of our 1,298 domestic franchised Popeyes restaurants were located in California, Florida, Illinois, Louisiana, Maryland, Mississippi, New York, Texas and Virginia. Over 60% of Popeyes’ 318 international franchised restaurants were located in Korea.

      Church’s Chicken™ . Founded in San Antonio, Texas in 1952, our Church’s brand is one of the oldest QSR systems in the United States. Church’s restaurants focus on serving traditional Southern fried chicken and other Southern specialties. As of December 29, 2002, there were 1,509 Church’s restaurants worldwide. Measured by number of QSRs, Church’s is currently the third largest chicken QSR concept in the world (measured by sales it is the fourth largest chicken QSR concept).

      As of December 29, 2002, Church’s restaurants were located in 28 states, Puerto Rico and 11 foreign countries. Our 284 company-operated Church’s restaurants were concentrated in Alabama, Arizona, Georgia, Mississippi, Tennessee and Texas. Over 70% of our 963 domestic franchised Church’s restaurants were located in Alabama, California, Florida, Georgia, Illinois, Louisiana, Michigan, Mississippi, New York, Ohio and Texas. Over 90% of Church’s 262 international franchised restaurants were located in Canada, Honduras, Indonesia, Mexico and Puerto Rico.

      Cinnabon® . Founded in Seattle, Washington in 1985, our Cinnabon brand is the market leader among cinnamon roll bakeries. Cinnabon serves fresh, aromatic, oven-hot cinnamon rolls as well as a variety of other baked goods and specialty beverages. As of December 29, 2002, Cinnabon had 612 bakeries worldwide.

      As of December 29, 2002, Cinnabon bakeries were located in 38 states, the District of Columbia, Puerto Rico and 20 foreign countries, primarily in high traffic venues such as shopping malls, airports, train stations and travel plazas. Our 84 company-operated Cinnabon bakeries were concentrated in California, Colorado, Georgia, Massachusetts and Pennsylvania. Over 60% of our 369 domestic franchised Cinnabon bakeries were located in California, Florida, Illinois, Maryland, Nevada, New York, North Carolina, Ohio, Pennsylvania, Texas and Washington. Over 60% of our 159 international franchised Cinnabon bakeries were located in Canada, Japan, Korea, the Philippines, Saudi Arabia and Venezuela.

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      Seattle’s Best Coffee® and Torrefazione Italia® Coffee. In 1994, Seattle Coffee Company (“Seattle Coffee”) was created from the combination of Seattle’s Best Coffee, Inc. and Torrefazione Italia, Inc. As of December 29, 2002, we had 217 Seattle’s Best Coffee cafes and 21 Torrefazione Italia Coffee cafes. Of these, 75 were company-operated and 163 were franchised. These cafes were located in 16 states and eight foreign countries. As of December 29, 2002, Seattle’s Best Coffee and Torrefazione Italia Coffee had 3,775 wholesale accounts with approximately 11,000 points of distribution.

      On July 14, 2003, we sold our Seattle Coffee subsidiary to Starbucks Corporation (“Starbucks”) for $72.0 million. Net proceeds of the sale, after transaction costs and other adjustments, are expected to be approximately $63.0 million, which is subject to adjustment based upon the determination of certain financial results of Seattle Coffee for pre-closing periods of operations. In this transaction, we sold substantially all of the continental U.S. and Canadian operations of Seattle Coffee, which included 52 company-operated Seattle’s Best Coffee cafes, 21 company-operated Torrefazione Italia cafes, Seattle Coffee’s existing franchise business in North America (which consisted of 76 Seattle’s Best Coffee cafes) and its wholesale coffee business. Following the transaction, we continue to franchise the Seattle’s Best Coffee brand in retail locations in Hawaii, in certain international markets outside North America and on certain U.S. military bases.

Overall Business Strategy

      AFC’s business strategy incorporates the following seven elements:

	1.	Building and managing a portfolio of recognizable QSR brands. We will continue to focus on enhancing the value of our portfolio of recognizable QSR brands. Toward this end, we see our success and that of our shareholders and our franchisees as integrally linked.

We will continue our ongoing efforts to improve our brands and our brand portfolio in ways that offer promising opportunities to increase shareholder value. These efforts include both strategic acquisitions and strategic divestitures where appropriate. The sale of our Seattle Coffee subsidiary in the third quarter of 2003 constitutes a strategic divestiture designed to improve our brand portfolio. To our franchisees, we will provide exceptional support, systems and services. We are committed to being the Franchisor of Choice ®.

	2.	Growing Through Our Franchise Network. We will fuel our business growth principally through franchising activities. From time-to-time, we will also sell company-operated units to franchisees, when strategically desirable. We believe that our focus on franchising provides us with higher profit margins and enhanced investment returns. In addition, a franchising-based growth strategy requires significantly less operating capital. As of December 29, 2002, over 85% of our brands’ 4,071 system-wide units were franchised, and we had development commitments from existing and new franchisees to open 2,622 additional units. As of November 30, 2003, we had commitments to open 2,351 additional units. However, we have been required to temporarily suspend certain domestic franchising activities due to the delay in releasing our financial statements for 2002 and our quarterly financial information for 2003.
	3.	Building Our Model Markets Program. Each of our brands will continue to own and operate units in one or more markets. The objective is to have a limited number of company-operated units that are concentrated in only a few geographic markets. This will allow us to focus on establishing best practices and developing new menu items for each of our brands, thereby creating model markets. Innovations and best practices established in each of these model markets will be shared with our franchisees. We believe these best practices, combined with our marketing initiatives, will aid our efforts to improve same-store sales and operating margins throughout our systems.
	4.	Promoting Uniquely Positioned Brands. We continually promote and refresh the image of our brands in order to increase consumer interest and sales. In the fourth quarter of 2000, we implemented a new re-imaging program that is designed to update the general public’s perception

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		of our brands. We plan to have substantially all of the QSRs in our systems re-imaged by the end of 2007. Most of our Popeyes and Church’s franchisees are contractually required to re-image their restaurants every six to seven years. Most of our Cinnabon franchisees are contractually required to re-image their bakeries within a time frame specified by us. The re-imaging program typically involves an interior and exterior makeover of the QSR along with new logos, dining room upgrades, uniforms, menu boards and menu items.
	5.	Increasing Domestic Market Penetration. Currently, most of our brands’ domestic markets are under-penetrated. We are increasing the number of our QSRs in new and existing markets. In addition, we are expanding the number and type of non-traditional formats in which our Popeyes and Church’s chicken restaurants are located, including convenience stores, mall food courts and airports.
	6.	Expanding Our Franchise Networks Internationally. We believe that we have the opportunity to establish or expand a leading market position in a number of countries, due to the appeal of our highly recognizable American brands. Our international operations have increased from 346 franchised units in Puerto Rico and 17 foreign countries at the end of 1995, to 823 franchised units in Puerto Rico and 33 foreign countries at the end of 2002. Additionally, commitments to develop international franchised units have increased from 502 at the end of 1995 to 1,261 at the end of 2002.
	7.	Improving Operational Efficiencies. Through our purchasing cooperative and various training initiatives, we seek to improve operational efficiencies for company-operated and franchised restaurants. We are also working to strengthen our brands’ franchise systems by inspecting operations and taking curative actions against chronically weak performers.

Site Selection

      We employ a site identification and new unit development process that assists our franchisees and us in identifying and obtaining favorable sites for new domestic QSRs. This process begins with an overall market plan for each targeted market, which we develop together with our franchisees. For our Popeyes and Church’s brands, we emphasize free-standing sites with ample parking and easy dinnertime access from high traffic roads. For our Cinnabon brand and our Seattle Coffee brands, we emphasize high traffic venues such as malls, in-line shopping centers, transportation facilities, central business districts, airports and office buildings. International sites are often located in densely populated urban areas, and are generally built with a multi-floor layout because of the scarcity and high cost of real estate and the higher percentage of dine-in customers.

Franchise Development

      Our strategy places a heavy emphasis on growth through franchising activities. The following discussion describes the standard arrangements we enter into with our franchisees.

      Domestic Development Agreements. Our domestic franchise development agreements provide for the development of a specified number of QSRs within a defined geographic territory. Generally, these agreements call for the development of the specified number of sites over a three to five year period with target opening dates for each unit. Our Popeyes franchisees currently pay a development fee of $7,500 per unit. Our Church’s franchisees currently pay a development fee of $10,000 for the first unit to be developed ($5,000 in the case of a convenience store unit) and then a reduced fee of $7,500 for each additional unit to be developed under the same agreement ($3,750 in the case of convenience store units). Our Cinnabon franchisees currently pay a development fee of $5,000 per unit. Our Seattle’s Best Coffee franchisees currently pay a development fee of $5,000 per unit. These development fees typically are paid when the agreement is executed and they are non-refundable.

      International Development Agreements. Our international franchise development agreements are similar to our domestic franchise development agreements, though the fee can be as much as $45,000 for

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      Franchise Agreements. Once we execute a development agreement, approve a site to be developed under that agreement, and our franchisee secures the property, we enter into a franchise agreement with our franchisee that conveys the right to operate the specific unit to be developed at the site. Our current franchise agreements provide for payment of the following franchise fees. Popeyes franchisees pay $30,000 per location. Church’s franchisees pay $15,000 per location for free-standing units and $10,000 per location for units opened in convenience stores or travel plazas. Cinnabon franchisees pay $30,000 for the first unit, $20,000 per location for any second or third unit and $15,000 per unit for any additional units developed under a single development agreement. Our Seattle’s Best Coffee franchisees pay $20,000 per location for traditional cafes.

      Our Popeyes, Church’s and Cinnabon franchise agreements generally require franchisees to pay a 5% royalty on net QSR sales. Our Seattle’s Best Coffee franchise agreements generally require franchisees to pay a 4% royalty on net QSR sales. In addition, our franchise agreements require franchisees to participate in certain advertising funds. Payments to the advertising funds are 3% of net QSR sales for Popeyes franchisees; 4% of net QSR sales for Church’s franchisees (reduced to a maximum of 1% if a local advertising co-operative is formed); up to 3% of net QSR sales for Cinnabon franchisees; and 3% of net QSR sales for our Seattle’s Best Coffee franchisees. Some of our older franchise agreements provide for lower royalties and advertising fund contributions. These older agreements constitute a decreasing percentage of our total outstanding franchise agreements.

      All of our franchise agreements require that each franchisee operate its QSRs in accordance with our defined operating procedures, adhere to the menu established by us and meet applicable quality, service, health and cleanliness standards. We may terminate the franchise rights of any franchisee who does not comply with these standards and requirements.

      AFC Loan Guarantee Programs. In March 1999, we implemented a program to assist qualified current and prospective franchisees in obtaining competitive financing needed to purchase or develop franchised units. Under the program, we guarantee up to 20% of the loan amount and we have a maximum aggregate liability for the entire pool of $1.0 million. As of December 29, 2002, approximately $8.8 million was borrowed by some of our franchisees under this program, of which we were contingently liable for $1.0 million.

      In November 2002, we implemented a second loan guarantee program to provide qualified franchisees with financing to fund new construction, re-imaging and facility upgrades. The duration of the loans made under this program is five to seven years. Under its terms, we provide a first loss guarantee to the lending institution in an aggregate amount not to exceed 10% of the sum of the original funded principal balances of all program loans. As of December 29, 2002, there were no outstanding borrowings under this program.

Suppliers and Purchasing Cooperative

      Suppliers. Our franchisees are generally required to purchase all ingredients, products, materials, supplies and other items necessary in the operation of their businesses solely from suppliers who have been approved by us. These suppliers must demonstrate the ability to meet our standards and specifications and possess adequate quality controls and capacity to supply our franchisees’ reliably.

      Purchasing Cooperative. Supplies are generally provided to our franchised and company-operated QSRs, pursuant to supply agreements negotiated by Supply Management Services, Inc. (“SMS”), a not-for-profit purchasing cooperative. We and our Popeyes, Church’s and Cinnabon franchisees hold ownership interests in SMS in proportion to the number of QSRs we each own. As of December 29, 2002, AFC owned approximately 16% of SMS and held three of its eleven board seats. For its part, AFC does not guarantee the operations, indebtedness, or the contracts entered into by SMS.

      Our Popeyes and Church’s franchise agreements require that each franchisee join SMS.

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      Generally, SMS does not commit itself, us, or our franchisees to any purchase volumes for on-going menu items. Occasionally though, for limited time offer programs, volume commitments are obtained for each operator, including AFC.

      Supply Agreements. The principal raw material for our Popeyes and Church’s systems is fresh chicken, representing approximately half of their “restaurant food, beverages and packaging” costs. Our company-operated and franchised restaurants purchase fresh chicken from approximately 13 suppliers who service us from 37 plant locations. These costs are significantly affected by increases in the cost of fresh chicken, which can result from a number of factors, including increases in the cost of grain, disease, declining market supply of fast-food sized chickens and other factors that affect availability.

      In order to ensure favorable pricing for chicken purchases and to maintain an adequate supply of fresh chicken for AFC and its franchisees, SMS has entered into four types of chicken purchasing contracts with chicken suppliers. The first is a grain-based “cost-plus” pricing contract that utilizes prices based upon the cost of feed grains plus certain agreed upon non-feed and processing costs. The second is a market-priced formula that includes a premium for cut specifications. The market-priced contracts have maximum and minimum prices that AFC and its franchisees will pay for chicken during the term of the contract. The third is a modified fixed-price contract for dark meat, with adjustments that occur only if market prices move outside of specific ranges, with provisions for certain annual price adjustments. The fourth has fixed prices for both eight-piece and dark meat, for periods up to one year. These contracts have terms ranging from six months to three years. These contracts establish pricing arrangements, but do not establish any firm purchase commitments on the part of AFC or its franchisees.

      We have entered into long-term purchase agreements with our beverage suppliers. These contracts are customary to the QSR industry. Pursuant to the terms of these agreements, the range of marketing rebates and the dollar volume of purchases will vary according to our demand for beverage syrup and fluctuations in the market rates for beverage syrup.

      We also have a long-term agreement with Diversified Foods and Seasonings, Inc. (“Diversified”), under which we have designated Diversified as the sole supplier of certain proprietary products for the Popeyes system. Diversified sells these products to our approved distributors, who in turn sell them to our franchised and company-operated Popeyes restaurants.

      The principal raw material for our Seattle Coffee brands is green coffee beans. Seattle Coffee typically enters into supply contracts to purchase a pre-determined quantity of green coffee beans at a fixed price per pound. These contracts usually cover periods up to five years. As of December 29, 2002, Seattle Coffee had commitments to purchase green coffee beans at a total cost of approximately $39.5 million through December 2007. Seattle Coffee’s green coffee bean purchase commitments were transferred in connection with the July 14, 2003 sale of Seattle Coffee.

Marketing and Advertising

      We generally market our food and beverage products to customers using a three-tiered marketing strategy consisting of (1) television and radio advertising, (2) print advertisement and signage, and (3) point-of-purchase materials. Each of our brands frequently offers new programs that are intended to generate and maintain consumer interest, address changing consumer preferences and enhance the position of our brands. New product introductions and “limited time only” promotional items also play a major role in building sales and encouraging repeat customers.

      Sales at restaurants located in markets in which we utilize television advertising are generally 5% to 10% higher than the sales generated by restaurants that are located in other markets. Consequently, we intend to target growth of our Popeyes and Church’s restaurants primarily in markets where we have or can achieve sufficient unit concentration to justify the expense of television advertising.

      Together with our franchisees, we contribute to a national advertising fund to pay for the development of marketing materials and also contribute to local advertising funds to support programs in our local markets. In markets where there is sufficient unit concentration to affect such savings, our franchisees and

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Employees

      As of December 29, 2002, we had 8,935 hourly employees working in our company-operated restaurant, bakery and cafe operations. Additionally, we had 1,157 salaried employees involved in the management of these same units, and 64 multi-unit managers and field management employees. We also had 639 employees responsible for corporate administration, franchise administration and business development, and 60 employees responsible for coffee roasting and distribution. None of our employees is covered by a collective bargaining agreement. We believe that the dedication of our employees is critical to our success and that our relationship with our employees is good.

Community Activity

      We believe strongly in supporting the communities we serve. Through the AFC Foundation, Inc., we have sponsored and helped construct more than 300 homes worldwide in conjunction with Habitat for Humanity, a non-profit builder of housing for the poor. In addition, each of our brands is involved in various community support programs. For example, Popeyes promotes music education and culinary education. Church’s sponsors summer camp programs through the Boys and Girls Clubs. Cinnabon encourages reading awareness through its Reading Rewards Program. In 2002 and 2001, we contributed approximately $500,000 to these programs and our franchisees and employees contributed thousands of volunteer hours. We believe, through our involvement with these programs, we have established a meaningful presence in the communities we serve, while building customer loyalty and positive brand awareness.

New Age of Opportunity®

      Through our New Age of Opportunity program, we make diversity a part of our culture. We believe the New Age of Opportunity program gives us an important competitive advantage by focusing on the following four areas:

	•	expanding franchise ownership opportunities for minorities and women;
	•	cultivating new supplier relationships for minorities and women;
	•	attracting and developing outstanding employees; and
	•	enhancing the quality of life for people through meaningful community service.

      Diversity enables us to look at a situation from all angles and provides us with the capacity to better understand our communities, our employees, our customers, our suppliers and our businesses, and provides us with the vision to meet emerging trends with creative ideas. Women and minorities constitute approximately 50% of the total number of our franchisees.

Intellectual Property and Other Proprietary Rights

      We own a number of trademarks and service marks that have been registered with the U.S. Patent and Trademark Office, including the marks “AFC,” “AFC Enterprises,” “Popeyes,” “Popeyes Chicken & Biscuits,” “Church’s,” “Cinnabon,” “World Famous Cinnamon Roll,” and each of the brand logos for Popeyes, Church’s and Cinnabon, as well as the trademark “Franchisor of Choice.” We also have registered trademarks for a number of additional marks, including “Gotta Love It,” “Day of Dreams,” “Love That Chicken From Popeyes” and “New Age of Opportunity.” In addition, we have registered, or made application to register, one or more of these marks, or their linguistic equivalents, in approximately 150 foreign countries. There is no assurance that we can obtain the registration for the marks in every country where registration has been sought. We consider our intellectual property rights to be important to our business and we actively defend and enforce them.

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      Seattle Coffee’s intellectual property rights were transferred to Starbucks in connection with the July 14, 2003 sale of Seattle Coffee. We retained a license to the intellectual property necessary for the operation of the Seattle’s Best Coffee franchising business in Hawaii, in certain international markets and on certain U.S. military bases.

      Formula Agreement. We have a formula licensing agreement with Alvin C. Copeland, the founder of Popeyes. Under this agreement, we have the worldwide exclusive rights to the Popeyes spicy fried chicken recipe and certain other ingredients, which are used in Popeyes products. The agreement provides that we pay Mr. Copeland approximately $3.1 million annually through March 2029.

      King Features Agreements. We have several agreements with the King Features Syndicate Division (“King Features”) of Hearst Holdings, Inc. under which we have the exclusive right to use the image and likeness of the cartoon character “Popeye,” and other companion characters such as “Olive Oyl,” in connection with Popeyes international restaurants. We also have the exclusive right to use the image and likeness of the “Popeye” character in connection with Popeyes domestic restaurants. Under these agreements, as amended, we are obligated to pay King Features a royalty of $0.9 million annually, as adjusted for fluctuations in the Consumer Price Index, plus twenty percent of our gross revenues from the sale of “Popeye” products sold through retail outlets and by way of Internet websites outside of the Popeyes restaurant system. These agreements extend through June 30, 2010.

International Operations

      An important component of our overall business strategy is to expand our operations internationally through franchising. As of December 29, 2002, we had franchised internationally 318 Popeyes QSRs, 262 Church’s QSRs, 159 Cinnabon QSRs and 84 Seattle’s Best Coffee QSRs. In 2002, franchise revenues from these operations constituted approximately 17% of our total franchise revenues. For each of 2002, 2001 and 2000, foreign-sourced revenues (principally royalties from international franchisees and coffee sales to international customers) represented 4.4%, 4.1% and 3.3% of total revenues, respectively.

Insurance

      We carry property, general liability, business interruption, crime, directors and officers liability, employment practices liability, environmental and workers’ compensation insurance policies, which we believe are customary for businesses of our size and type. Pursuant to the terms of their franchise agreements, our franchisees are also required to maintain certain types and levels of insurance coverage, including commercial general liability insurance, workers’ compensation insurance, all risk property and automobile insurance.

Seasonality

      Our Cinnabon bakeries and Seattle Coffee cafes experience their strongest operating results during the holiday shopping season between Thanksgiving and New Year’s. Seasonality has little effect on the remaining portions of our business.

Competition

      The foodservice industry in general, and particularly the QSR industry, is intensely competitive with respect to price, quality, name recognition, service and location. We compete against other QSRs, including chicken, hamburger, pizza, Mexican and sandwich restaurants, other purveyors of carryout food and convenience dining establishments, including national restaurant chains. Many of our competitors possess substantially greater financial, marketing, personnel and other resources than we do. In particular, KFC, our primary competitor in the chicken segment of the QSR industry, has far more units, greater brand recognition and greater financial resources, all of which may affect our ability to compete.

      Our Cinnabon bakeries compete directly with national chains located in malls and transportation centers such as Auntie Anne’s, The Great American Cookie Company and Mrs. Fields, as well as

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      Following the sale of our Seattle Coffee subsidiary to Starbucks, we continue to franchise the Seattle’s Best Coffee brand in retail locations in Hawaii, in certain international markets and on certain U.S. military bases. The Seattle’s Best Coffee cafes compete directly with specialty coffees sold at retail through supermarkets, specialty retailers and a growing number of specialty coffee cafes and kiosks and all restaurant and beverage outlets that serve coffee.

Government Regulation

      We are subject to various federal, state and local laws affecting our business, including various health, sanitation, fire and safety standards. Newly constructed or remodeled QSRs are subject to state and local building code and zoning requirements. In connection with the re-imaging and alteration of our company-operated QSRs, we may be required to expend funds to meet certain federal, state and local regulations, including regulations requiring that remodeled or altered units be accessible to persons with disabilities. Difficulties or failures in obtaining the required licenses or approvals could delay or prevent the opening of new units in particular areas.

      We are also subject to the Fair Labor Standards Act and various other laws governing such matters as minimum wage requirements, overtime and other working conditions and citizenship requirements. A significant number of our foodservice personnel are paid at rates related to the federal minimum wage, and increases in the minimum wage have increased our labor costs.

      Many states and the Federal Trade Commission, as well as certain foreign countries, require franchisors to transmit specified disclosure statements to potential franchisees before granting a franchise. Additionally, some states and certain foreign countries require us to register our franchise offering documents before we may offer a franchise. We currently do not have effective domestic uniform franchise offering circulars due to the delay in releasing our 2002 financial statements and the financial filings due thereafter. See “Risk Factors — The number of new units to be opened by franchisees has been and may continue to be adversely affected by our delay in releasing audited financial statements for 2002” included in Item 7 hereof. We believe that our international disclosure statements, franchise offering documents and franchising procedures comply with the laws of the foreign countries in which we have offered franchises.

Environmental Matters

      We are subject to various federal, state and local laws regulating the discharge of pollutants into the environment. We believe that we conduct our operations in substantial compliance with applicable environmental laws and regulations, as well as other applicable laws and regulations governing our operations. However, approximately 125 of our owned and/or leased properties are known or suspected to have been used by prior owners or operators as retail gas stations, and a few of these properties may have been used for other environmentally sensitive purposes. Many of these properties previously contained underground storage tanks, and some of these properties may currently contain abandoned underground storage tanks. It is possible that petroleum products and other contaminants may have been released at these properties into the soil or groundwater. Under applicable federal and state environmental laws, we, as the current owner or operator of these sites, may be jointly and severally liable for the costs of remediation of any contamination, as well as any other environmental conditions at our properties that are unrelated to underground storage tanks. In 2000, after an analysis of our property portfolio and an initial assessment of our properties, including testing of soil and groundwater at a representative sample of our facilities, we obtained insurance coverage that we believe is adequate to cover any potential environmental remediation liabilities. We are currently not subject to any administrative or court order requiring remediation at any of our properties.

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Where You Can Find Additional Information

      We file our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports with the SEC. You may obtain copies of these documents by visiting the SEC’s Public Reference Room at 450 Fifth Street, NW, Washington, DC 20549, by calling the SEC at 1-800-SEC-0330 or by accessing the SEC’s website at http://www.sec.gov. In addition, as soon as reasonably practicable after such materials are filed with, or furnished to, the SEC, we make copies of these documents (except for exhibits) available to the public free of charge through our web site at www.afce.com or by contacting our Secretary at our principal offices, which are located at Six Concourse Parkway, Suite 1700, Atlanta, Georgia 30328-5352, telephone number (770) 391-9500.

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