UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


       Date of Report (Date of earliest event reported) December 30, 2005


                          Franchise Capital Corporation
               (Exact name of Registrant as specified in charter)


         Nevada                           333-72392                98-0353403
(State or other jurisdiction            (Commission             (I.R.S. Employer
     of incorporation)                   File Number)            Identification)


     8566 E. Via De Ventura Suite G217
              Scottsdale, AZ                                         85258
 (Address of principal executive offices)                          (Zip Code)


       Registrant's telephone number, including area code: (480) 355-8142

ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT and

ITEM 1.02 TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT

On December 29, 2005, Franchise Capital Corporation and Creative Eateries
Corporation executed a Rescission and Funding Agreement which rescinded the
October 4th, 2005 Purchase Agreement under which Creative Eateries Corporation
was acquiring interests in restaurants and concepts from Franchise Capital
Corporation. The rescission was a result of several disputed issues related to
the Purchase Agreement, including certain representations made or relied upon by
the parties in connection with the Purchase Agreement and non-payment of
consideration required by the Purchase Agreement.

In addition, pursuant to the Rescission and Funding Agreement, Creative Eateries
has agreed to provide the needed capital to develop two restaurant concepts,
Kokopelli Sonoran Grill and Comstock Jake's, through April, 2006. In
consideration for providing funding as scheduled, Creative Eateries would
receive an amount equal to 50% of profits received by Franchise Capital
Corporation from Kokopelli Sonoran Grill and Comstock Jake's for a five-year
period.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

Exhibit No. 10: Rescission and Funding Agreement dated December 29, 2005.

                                   SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this Report to be signed on its behalf by the
undersigned here unto duly authorized.

Date: December 30, 2005

Franchise Capital Corporation

                              By: /s/ Edward C. Heisler
                                 ------------------------------------
                                 Edward C. Heisler, Chairman & CEO