PROXY AGREEMENT

                                                                    Exhibit 99.1

                                               December 20, 2006


VIA FACSIMILE
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Paul Bork, Esq.
Foley Hoag LLP
Two Seaport Lane
Boston, MA   02210

     RE:    Friendly Ice Cream Corporation (the "Company")
           ----------------------------------------------

Dear Paul:

     Thank you for accepting our request to meet with you yesterday. In our
continuing effort to avoid the expense and distraction of a proxy contest, the
Company offers Sardar Biglari the following:

     1.    The Company will appoint Mr. Biglari and Philip Cooley to serve as
          directors.

     2.    Mr. Biglari and his affiliates shall not, directly or indirectly,
          solicit or participate in any solicitation of proxies not recommended
          by the Board until six months a