sec document

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ms+0+Ny2vyep7CZFc6b694w3ZoD5Bt8RJdLOF1ekCTlre0Hsfg5VkPd6etym6W68 80qtPc5pKO1UzxresZwYCA== 0000921895-07-000083.txt : 20070110 0000921895-07-000083.hdr.sgml : 20070110 20070110141208 ACCESSION NUMBER: 0000921895-07-000083 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20070110 DATE AS OF CHANGE: 20070110 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: FRIENDLY ICE CREAM CORP CENTRAL INDEX KEY: 0000039135 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 042053130 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-52679 FILM NUMBER: 07522860 BUSINESS ADDRESS: STREET 1: 1855 BOSTON ROAD CITY: WILBRAHAM STATE: MA ZIP: 01095 BUSINESS PHONE: 4135432400 MAIL ADDRESS: STREET 1: 1855 BOSTON ROAD CITY: WILBRAHAM STATE: MA ZIP: 01095 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: LION FUND, L.P. CENTRAL INDEX KEY: 0001334426 IRS NUMBER: 742980419 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 9311 SAN PEDRO AVENUE, SUITE 1440 CITY: SAN ANTONIO STATE: TX ZIP: 78216 BUSINESS PHONE: 210-344-3400 MAIL ADDRESS: STREET 1: 9311 SAN PEDRO AVENUE, SUITE 1440 CITY: SAN ANTONIO STATE: TX ZIP: 78216 SC 13D/A 1 sc13da1506824002_01082007.htm sec document



                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                 --------------

                                  SCHEDULE 13D
                                 (Rule 13d-101)

             INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
            TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
                                  RULE 13d-2(a)

                             (Amendment No. 15)(1)

                         Friendly Ice Cream Corporation
                         ------------------------------
                                (Name of Issuer)

                          Common Stock, $.01 Par Value
                          ----------------------------
                         (Title of Class of Securities)

                                    358497105
                                    ---------
                                 (CUSIP Number)

                              STEVEN WOLOSKY, ESQ.
                 OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
                                Park Avenue Tower
                               65 East 55th Street
                            New York, New York 10022
                                 (212) 451-2300
                                 --------------
                  (Name, Address and Telephone Number of Person
                Authorized to Receive Notices and Communications)

                                 January 8, 2007
                                 ---------------
             (Date of Event Which Requires Filing of This Statement)

      If the filing person has  previously  filed a statement on Schedule 13G to
report the  acquisition  that is the subject of this Schedule 13D, and is filing
this  schedule  because  of Rule  13d-1(e),  13d-1(f)  or  13d-1(g),  check  the
following box / /.

      NOTE.  Schedules filed in paper format shall include a signed original and
five copies of the schedule,  including  all exhibits.  SEE Rule 13d-7 for other
parties to whom copies are to be sent.

                         (Continued on following pages)

                              (Page 1 of 12 Pages)


- -------------------------------
(1)   The  remainder  of this cover  page  shall be filled  out for a  reporting
person's  initial  filing on this  form with  respect  to the  subject  class of
securities,  and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.

      The information  required on the remainder of this cover page shall not be
deemed to be "filed"  for the purpose of Section 18 of the  Securities  Exchange
Act of 1934 or otherwise  subject to the  liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  SEE the
NOTES).




- ----------------------                                    ----------------------
CUSIP No. 358497105                   13D                    Page 2 of 12 Pages
- ----------------------                                    ----------------------


================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                    The Lion Fund L.P.
- --------------------------------------------------------------------------------
     2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*         (a) /X/
                                                                         (b) / /
- --------------------------------------------------------------------------------
     3         SEC USE ONLY

- --------------------------------------------------------------------------------
     4         SOURCE OF FUNDS*

                    WC
- --------------------------------------------------------------------------------
     5         CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
               PURSUANT TO ITEM 2(d) OR 2(e)                                 / /
- --------------------------------------------------------------------------------
     6         CITIZENSHIP OR PLACE OF ORGANIZATION

                    Delaware
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  - 0 -
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   1,182,488
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              - 0 -
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              1,182,488
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
               PERSON

                    1,182,488
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
               CERTAIN SHARES*                                               / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    14.92%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    PN
================================================================================

                      *SEE INSTRUCTIONS BEFORE FILLING OUT!




- ----------------------                                    ----------------------
CUSIP No. 358497105                   13D                    Page 3 of 12 Pages
- ----------------------                                    ----------------------


================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                    Biglari Capital Corp.
- --------------------------------------------------------------------------------
     2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*         (a) /X/
                                                                         (b) / /
- --------------------------------------------------------------------------------
     3         SEC USE ONLY

- --------------------------------------------------------------------------------
     4         SOURCE OF FUNDS*

                    AF, WC
- --------------------------------------------------------------------------------
     5         CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
               PURSUANT TO ITEM 2(d) OR 2(e)                                 / /
- --------------------------------------------------------------------------------
     6         CITIZENSHIP OR PLACE OF ORGANIZATION

                    Texas
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  - 0 -
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   1,182,488
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              - 0 -
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              1,182,488
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
               PERSON

                    1,182,488
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
               CERTAIN SHARES*                                               / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    14.92%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    CO
================================================================================

                      *SEE INSTRUCTIONS BEFORE FILLING OUT!




- ----------------------                                    ----------------------
CUSIP No. 358497105                   13D                    Page 4 of 12 Pages
- ----------------------                                    ----------------------


================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                    Biglari, Sardar
- --------------------------------------------------------------------------------
     2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*         (a) /X/
                                                                         (b) / /
- --------------------------------------------------------------------------------
     3         SEC USE ONLY

- --------------------------------------------------------------------------------
     4         SOURCE OF FUNDS*

                    AF, WC
- --------------------------------------------------------------------------------
     5         CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
               PURSUANT TO ITEM 2(d) OR 2(e)                                 / /
- --------------------------------------------------------------------------------
     6         CITIZENSHIP OR PLACE OF ORGANIZATION

                    USA
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  - 0 -
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   1,182,488
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              - 0 -
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              1,182,488
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
               PERSON

                    1,182,488
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
               CERTAIN SHARES*                                               / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    14.92%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    IN
================================================================================

                      *SEE INSTRUCTIONS BEFORE FILLING OUT!




- ----------------------                                    ----------------------
CUSIP No. 358497105                   13D                    Page 5 of 12 Pages
- ----------------------                                    ----------------------


================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                    Western Sizzlin Corp.
- --------------------------------------------------------------------------------
     2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*         (a) /X/
                                                                         (b) / /
- --------------------------------------------------------------------------------
     3         SEC USE ONLY

- --------------------------------------------------------------------------------
     4         SOURCE OF FUNDS*

                    WC
- --------------------------------------------------------------------------------
     5         CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
               PURSUANT TO ITEM 2(d) OR 2(e)                                 / /
- --------------------------------------------------------------------------------
     6         CITIZENSHIP OR PLACE OF ORGANIZATION

                    Delaware
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  - 0 -
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   1,182,488
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              - 0 -
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              1,182,488
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
               PERSON

                    1,182,488
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
               CERTAIN SHARES*                                               / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    14.92%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    CO
================================================================================

                      *SEE INSTRUCTIONS BEFORE FILLING OUT!




- ----------------------                                    ----------------------
CUSIP No. 358497105                   13D                    Page 6 of 12 Pages
- ----------------------                                    ----------------------


================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                    Cooley, Philip L.
- --------------------------------------------------------------------------------
     2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*         (a) /X/
                                                                         (b) / /
- --------------------------------------------------------------------------------
     3         SEC USE ONLY

- --------------------------------------------------------------------------------
     4         SOURCE OF FUNDS*

                    AF, WC, PF
- --------------------------------------------------------------------------------
     5         CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
               PURSUANT TO ITEM 2(d) OR 2(e)                                 / /
- --------------------------------------------------------------------------------
     6         CITIZENSHIP OR PLACE OF ORGANIZATION

                    USA
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  - 0 -
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   1,182,488
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              - 0 -
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              1,182,488
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
               PERSON

                    1,182,488
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
               CERTAIN SHARES*                                               / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    14.92%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    IN
================================================================================

                      *SEE INSTRUCTIONS BEFORE FILLING OUT!




- ----------------------                                    ----------------------
CUSIP No. 358497105                   13D                    Page 7 of 12 Pages
- ----------------------                                    ----------------------


      The following  constitutes  Amendment No. 15 ("Amendment No. 15") to the
Schedule  13D filed by the  undersigned.  This  Amendment  No.  15 amends  the
Schedule 13D as specifically set forth.

      Item 4 is hereby amended to add the following:

      On January 8, 2007,  Sardar Biglari,  on behalf of the Reporting  Persons,
sent a letter to  shareholders  of the Issuer  (the  "Letter")  in response to a
letter to shareholders  dated January 2, 2007 from Donald Smith, the Chairman of
the Board of Directors of the Issuer, which Mr. Biglari believes was intended to
misinform  shareholders.  Mr.  Biglari stated that the Board of Directors of the
Issuer,  among other things,  has failed to create  shareholder  value since the
Issuer went public a decade ago,  failed to fully disclose to  shareholders  the
details of the Reporting  Persons'  recent  proposal to declassify the staggered
board,  and  continues  to protect its own best  interests at the expense of the
shareholders'  well-being.  Mr.  Biglari also  reiterated  that if the Reporting
Persons'  nominees  are elected,  they will do their best to create  shareholder
value by seeking to institute corporate governance reform,  improved operational
performance,  and improved financial  performance -- all revisions which promote
the right  behavior -- thereby  putting the  shareholders  first.  A copy of the
Letter is attached as an exhibit hereto and incorporated herein by reference.

      Item 7 is hereby amended to add the following exhibit:

      A.    Letter to  Shareholders,  dated  January 8, 2007 (filed  herewith as
            Exhibit A).




- ----------------------                                    ----------------------
CUSIP No. 358497105                   13D                    Page 8 of 12 Pages
- ----------------------                                    ----------------------


                                   SIGNATURES

            After  reasonable  inquiry  and to the  best  of his  knowledge  and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.


Dated:      January 10, 2007                THE LION FUND L.P.

                                            By: Biglari Capital Corp.
                                                General Partner

                                            By: /s/ Sardar Biglari
                                                --------------------------------
                                                Sardar Biglari, Chief Executive Officer


                                            BIGLARI CAPITAL CORP.

                                            By: /s/ Sardar Biglari
                                                --------------------------------
                                                Sardar Biglari, Chief Executive Officer


                                            /s/ Sardar Biglari
                                            ------------------------------------
                                            SARDAR BIGLARI


                                            WESTERN SIZZLIN CORP.

                                            By: /s/ Robyn B. Mabe
                                                --------------------------------
                                                Robyn B. Mabe, Chief Financial Officer


                                            /s/ Philip L. Cooley
                                            ------------------------------------
                                             PHILIP L. COOLEY




- ----------------------                                    ----------------------
CUSIP No. 358497105                   13D                    Page 9 of 12 Pages
- ----------------------                                    ----------------------


                                                                       EXHIBIT A
                               THE LION FUND, L.P.
                        9311 SAN PEDRO AVENUE, SUITE 1440
                            SAN ANTONIO, TEXAS 78216
                            TELEPHONE (210) 344-3400
                               FAX (210) 344-3411

SARDAR BIGLARI, CHAIRMAN
                                 January 8, 2007

Dear Fellow Shareholder:

      On January 2, 2007, Donald Smith,  Chairman of Friendly Ice Cream Corp.,
issued  another letter that we believe was intended to misinform you. I am not
surprised:  Mr. Smith and the board will take any action  necessary that would
divert your attention from the company's dismal performance.  Mr. Smith, along
with the board, has failed to create  shareholder  value since Friendly's went
public a decade ago at $18 per share.

      In his letter,  Mr. Smith neglects to tell  shareholders  that we recently
proposed just one change to Friendly's corporate governance -- to declassify the
staggered  board -- but the board rejected our idea of putting the suggestion to
shareholder  vote;  instead  it opted  to  protect  its  interests,  not  yours.
Shareholders are the true owners of Friendly's; consequently, they should decide
whether or not an entrenched board is good policy.  Clearly,  the board does not
want to be held accountable.

      We believe the board will  continue to make  decisions  to protect its own
best interests at the expense of the  shareholders'  well-being.  The cost of an
entrenched board imposes a heavy burden on Friendly's value.  Since we disclosed
our  large  ownership  in the  company,  its  stock  price  has risen to a level
reflecting  the  expectation  that  positive  change is in the offing.  While we
cannot  promise future  returns,  we can guarantee we will do our best to create
shareholder value by seeking to institute corporate governance reform,  improved
operational  performance,  and improved  financial  performance -- all revisions
which promote the right behavior -- thereby putting the shareholders first.

      Furthermore,  we are  seeking  just two  board  seats  to  serve  the best
interests  of all  shareholders.  We  don't  want  unequal  footing  with  other
shareholders.  Mr. Smith does.  For  instance,  he is permitted to purchase more
than 15% of the company  without  triggering the company's  "poison pill" rights
plan.  We will  continue  to share  with you other  decisions  made by the board
designed  to  provide  immunity  not  accountability,  and  in  the  process  to
disenfranchise us shareholders.

      We lack  confidence in the current board but have confidence that you will
support our  position  when we seek your votes to bring much needed  independent
thought and demanding, impartial financial discipline.

                                            Sincerely,

                                            /s/ Sardar Biglari
                                            ------------------------------------
                                            Sardar Biglari

Enclosure:  my public  statement of January 2, 2007  communicating my thoughts
regarding the board's proposal and our position




- ----------------------                                    ----------------------
CUSIP No. 358497105                   13D                    Page 10 of 12 Pages
- ----------------------                                    ----------------------


THIS  COMMUNICATION  IS NOT A  SOLICITATION  OF A PROXY  WHICH  MAY BE DONE ONLY
PURSUANT TO A DEFINITIVE PROXY  STATEMENT.  STOCKHOLDERS ARE ADVISED TO READ THE
PROXY  STATEMENT AND OTHER DOCUMENTS  RELATED TO THE  SOLICITATION OF PROXIES BY
THE LION FUND L.P., BIGLARI CAPITAL CORP., WESTERN SIZZLIN CORP., SARDAR BIGLARI
AND PHILIP L. COOLEY FROM THE  STOCKHOLDERS  OF FRIENDLY ICE CREAM  CORPORATION,
FOR USE AT ITS 2007 ANNUAL MEETING OF  STOCKHOLDERS  WHEN THEY BECOME  AVAILABLE
BECAUSE THEY WILL CONTAIN IMPORTANT  INFORMATION.  WHEN COMPLETED,  A DEFINITIVE
PROXY  STATEMENT AND A FORM OF PROXY WILL BE MAILED TO  STOCKHOLDERS OF FRIENDLY
ICE CREAM  CORPORATION  AND WILL BE AVAILABLE AT NO CHARGE AT THE SECURITIES AND
EXCHANGE COMMISSION'S WEBSITE AT HTTP://WWW.SEC.GOV.  IN ADDITION, COPIES OF THE
PROXY  STATEMENT  AND OTHER  DOCUMENTS  WILL BE  PROVIDED  WITHOUT  CHARGE  UPON
REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO OUR PROXY SOLICITOR, MORROW &
CO., INC. AT ITS TOLL-FREE NUMBER (800) 607-0088.  THE PARTICIPANTS IN THE PROXY
SOLICITATION  ARE  ANTICIPATED TO BE THE LION FUND L.P.,  BIGLARI CAPITAL CORP.,
WESTERN SIZZLIN CORP., SARDAR BIGLARI AND PHILIP L. COOLEY (THE "PARTICIPANTS").
INFORMATION  REGARDING  THE  PARTICIPANTS,  INCLUDING  THEIR  DIRECT OR INDIRECT
INTERESTS,  BY SECURITY HOLDINGS OR OTHERWISE,  IS CONTAINED IN THE SCHEDULE 13D
FILED BY THEM WITH THE SECURITIES AND EXCHANGE COMMISSION ON AUGUST 7, 2006 WITH
RESPECT TO FRIENDLY ICE CREAM  CORPORATION,  AS AMENDED.  THAT  SCHEDULE 13D, AS
AMENDED,  IS  CURRENTLY  AVAILABLE AT NO CHARGE ON THE  SECURITIES  AND EXCHANGE
COMMISSION'S WEBSITE AT  HTTP://WWW.SEC.GOV.  AS OF JANUARY 8, 2007, EACH OF THE
PARTICIPANTS  MAY BE DEEMED TO BENEFICIALLY OWN 1,182,488 SHARES OF COMMON STOCK
OF FRIENDLY ICE CREAM CORPORATION. EACH OF THE PARTICIPANTS DISCLAIMS BENEFICIAL
OWNERSHIP  OF SUCH  SHARES  EXCEPT TO THE EXTENT OF HIS/ITS  PECUNIARY  INTEREST
THEREIN




- ----------------------                                    ----------------------
CUSIP No. 358497105                   13D                    Page 11 of 12 Pages
- ----------------------                                    ----------------------


PRESS RELEASE

 SARDAR BIGLARI ISSUES STATEMENT; LION FUND GROUP AND FRIENDLY ICE CREAM CORP.
                    UNABLE TO REACH AGREEMENT ON BOARD SEATS

ROANOKE,  Va., Jan. 2  /PRNewswire-FirstCall/  -- Sardar Biglari,  Chairman of
The Lion Fund,  L.P. and Western  Sizzlin Corp.  (OTC Bulletin  Board:  WSZL -
News), issued the following statement:

On September 20, 2006, we asked the Friendly Ice Cream Corp.  (Amex: FRN - News)
for two  board  seats  in  order  for us to  serve  the  best  interests  of all
shareholders.  Three months later,  on December 20, 2006, the company offered us
two board seats with a major restriction which would limit our ability to act in
the best interests of the company's stockholders. In light of the company's poor
performance  and total  disregard  for proper  corporate  governance,  we cannot
accept restrictions on our ability to hold the existing board and its management
accountable for the company's performance.  Nevertheless,  on December 21, 2006,
we informed the company  that we would  accept its offer,  but only if the board
agreed to place a binding management  proposal on the 2007 annual meeting agenda
to  declassify  the board,  that is, to make the  election of the entire board a
yearly  occurrence.  This change would  represent a  significant  start  towards
improving  the  corporate  governance  of  the  company  and  making  the  board
answerable to the stockholders, the true owners of the company.

Research  indicates  that a classified  board  diminishes the value of a company
because  that  system  obstructs  directors'   accountability  to  shareholders.
Unfortunately,  earlier  today,  the board rejected our  recommendation  with no
clear  explanation of its refusal to declassify  the staggered  board -- another
marker of its poor business judgment.

The cost of an entrenched board is weighing heavily on Friendly's  value. If the
board were concerned about acting in the best interest of shareholders, it would
have already  acted on our previous  request to grant us two board seats without
restrictions,  or the board would have  accepted our  recommendation  to put the
declassification of the board to a binding shareholder  proposal.  Either action
would have avoided a costly and distracting proxy battle, which as a last resort
we are now forced to wage.  We are  confident  that  stockholders  will  support
constructive  change  when we seek  their  votes in 2007 to elect  our  director
nominees. No rhetoric can overcome the record of this board. We own; we care.




- ----------------------                                    ----------------------
CUSIP No. 358497105                   13D                    Page 12 of 12 Pages
- ----------------------                                    ----------------------


THIS  COMMUNICATION  IS NOT A  SOLICITATION  OF A PROXY  WHICH  MAY BE DONE ONLY
PURSUANT TO A DEFINITIVE PROXY  STATEMENT.  STOCKHOLDERS ARE ADVISED TO READ THE
PROXY  STATEMENT AND OTHER DOCUMENTS  RELATED TO THE  SOLICITATION OF PROXIES BY
THE LION FUND L.P., BIGLARI CAPITAL CORP., WESTERN SIZZLIN CORP., SARDAR BIGLARI
AND PHILIP L. COOLEY FROM THE  SHAREHOLDERS  OF FRIENDLY ICE CREAM  CORPORATION,
FOR USE AT ITS 2007 ANNUAL MEETING OF  STOCKHOLDERS  WHEN THEY BECOME  AVAILABLE
BECAUSE THEY WILL CONTAIN IMPORTANT  INFORMATION.  WHEN COMPLETED,  A DEFINITIVE
PROXY  STATEMENT AND A FORM OF PROXY WILL BE MAILED TO  STOCKHOLDERS OF FRIENDLY
ICE CREAM  CORPORATION  AND WILL BE AVAILABLE AT NO CHARGE AT THE SECURITIES AND
EXCHANGE COMMISSION'S WEBSITE AT HTTP://WWW.SEC.GOV.  IN ADDITION, COPIES OF THE
PROXY  STATEMENT  AND OTHER  DOCUMENTS  WILL BE  PROVIDED  WITHOUT  CHARGE  UPON
REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO OUR PROXY SOLICITOR, MORROW &
CO., INC. AT ITS TOLL-FREE NUMBER (800) 607-0088.  THE PARTICIPANTS IN THE PROXY
SOLICITATION  ARE  ANTICIPATED TO BE THE LION FUND L.P.,  BIGLARI CAPITAL CORP.,
WESTERN SIZZLIN CORP., SARDAR BIGLARI AND PHILIP L. COOLEY (THE "PARTICIPANTS").
INFORMATION  REGARDING  CERTAIN OF THE  PARTICIPANTS,  INCLUDING THEIR DIRECT OR
INDIRECT  INTERESTS,  BY SECURITY  HOLDINGS OR  OTHERWISE,  IS  CONTAINED IN THE
SCHEDULE 13D FILED BY THEM WITH THE SECURITIES AND EXCHANGE COMMISSION ON AUGUST
7, 2006 WITH  RESPECT  TO  FRIENDLY  ICE CREAM  CORPORATION,  AS  AMENDED,  MOST
RECENTLY ON DECEMBER  18,  2006.  THAT  SCHEDULE  13D, AS AMENDED,  IS CURRENTLY
AVAILABLE AT NO CHARGE ON THE  SECURITIES AND EXCHANGE  COMMISSION'S  WEBSITE AT
HTTP://WWW.SEC.GOV.  AS OF  JANUARY  2, 2007,  EACH OF THE  PARTICIPANTS  MAY BE
DEEMED TO  BENEFICIALLY  OWN  1,182,388  SHARES OF COMMON  STOCK OF FRIENDLY ICE
CREAM CORPORATION.  EACH OF THE PARTICIPANTS  DISCLAIMS  BENEFICIAL OWNERSHIP OF
SUCH SHARES EXCEPT TO THE EXTENT OF HIS/ITS PECUNIARY INTEREST THEREIN.

Source: Western Sizzlin Corp.
-----END PRIVACY-ENHANCED MESSAGE-----