In the first of the two transactions, Famous Dave's signed an agreement for the development of six new franchise restaurants in the Milwaukee and Green Bay area and simultaneously entered into an agreement to sell its three Wisconsin restaurants to the new franchise group. In the second transaction, Famous Dave's sold its restaurant in Rochester, MN to Competition BBQ, headed by John Nermyr, which in turn agreed to develop two additional restaurants in out-state Minnesota.

The four restaurants are being sold for a total of $3.7 million. Famous Dave's anticipates closing on the sale of the three Wisconsin restaurants in mid-February, 2002, pending third-party contingencies. Total annual revenues for the four restaurants were approximately $7.2 million.

With the new deals, Famous Dave's of America now has 80 franchised restaurants either open or with commitments to open. The company now owns 36 locations and franchises an additional 19 units in Alabama, Georgia, Illinois, Indiana, Iowa, Maryland, Minnesota, Nebraska, South Dakota, Tennessee Utah, Virginia and Wisconsin and has signed development agreements for an additional 61 franchised locations.