The following table presents the financial information for the Company’s franchising segment:

The Company’s international operations had revenues of $5.3 million, $6.9 million and $5.8 million for the years ended December 31, 2000, 1999 and 1998, respectively. Long-lived assets related to international operations were $10.9 million and $20.7 million as of December 31, 2000 and 1999, respectively. All other long-lived assets of the Company are associated with domestic activities. In addition, the Company had a $34.6 million and $41.2 million investment in Friendly as of December 31, 2000 and 1999, respectively.

20. Commitments and Contingencies

The Company is a defendant in a number of lawsuits arising in the ordinary course of business. In the opinion of management and general counsel to the Company, the ultimate outcome of such litigation will not have a material adverse effect on the Company’s business, financial position, results of operations or cash flows.

In January 2001, the Company provided Friendly, in association with Friendly’s restructuring (see Note 5 to Consolidated Financial Statements), with a letter of credit in an amount up to £7.8 million (approximately US $11.4 million) to guarantee additional credit facilities from Friendly’s banks.

From time to time, the Company establishes programs or helps franchisees obtain financing. One of the past programs was a ”Construction to Permanent Financing” program under which Salomon Smith Barney together with Suburban Capital Markets, Inc. offered $100 million in financing per year to qualified franchises and the Company guaranteed such loans with a maximum guarantee amount of $10 million. At December 31, 2000 and 1999, loans outstanding under this program were $6.0 million and $14.3 million, respectively, and the Company’s guarantee covered $3.0 million and $7.2 million, respectively, of these loans. In 2001, the $6.0 million loan was settled, removing the Company’s open guarantee of $3.0 million.

21. Fair Value of Financial Instruments

The balance sheet carrying amount of cash and cash equivalents and receivables approximate fair value due to the short-term nature of these items. Long-term debt consists of bank loans and senior notes. Interest rates on bank loans adjust frequently based on current market rates; accordingly, the carrying amount of bank loans is equivalent to fair value.

The Note from Sunburst has an approximate fair value of $139.4 million and $135.0 million at December 31, 2000 and 1999, respectively, based on its current yield to maturity. The $100 million unsecured senior notes have an approximate fair value at December 31, 2000 and 1999 of $97.9 million and $93.9 million, respectively, based on their current yield to maturity.