Exhibit 99.2

Friendly Ice Cream Corporation Announces Employment Inducement Awards to New
Chief Executive Officer

     WILBRAHAM, Mass.--(BUSINESS WIRE)--Jan. 10, 2007--Friendly Ice Cream
Corporation (AMEX: FRN) today reported the grant of stock options to purchase
75,000 shares of the Company's common stock to George Condos as a material
inducement to his employment as the Company's new President and Chief Executive
Officer. These non-qualified stock options were granted pursuant to an exemption
from the stockholder approval requirements set forth in Section 711 of the
American Stock Exchange Company Guide. The stock options have an exercise price
equal to the Company's closing price on January 8, 2007 and vest over a
three-year period.

     About Friendly Ice Cream Corporation

     Friendly Ice Cream Corporation is a vertically integrated restaurant
company serving signature sandwiches, entrees and ice cream desserts in a
friendly, family environment in more than 520 company and franchised restaurants
throughout the Northeast. The company also manufactures ice cream, which is
distributed through more than 4,500 supermarkets and other retail locations.
With a 70-year operating history, Friendly's enjoys strong brand recognition and
is currently revitalizing its restaurants and introducing new products to grow
its customer base.


     CONTACT: Friendly Ice Cream Corporation
              Deborah Burns, 413-731-4124
              Senior Director Investor Relations