8-K

                     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: JANUARY 10, 2002
                               --------------
                    FAMILY STEAK HOUSES OF FLORIDA, INC.
           (Exact name of Registrant as specified in its charter)

           Florida			5812	 	      59 2597349
     (State or other 		(Primary Standard     (I.R.S. Employer
      jurisdiction of          Industrial            Identification
      Incorporation or         Classification         No.)
      Organization             Code No.)

                          2113 Florida Boulevard
                      Neptune Beach, Florida  32266
                             (904) 249-4197
          (Address and telephone number of Registrant's principal
                           executive offices)
                             --------------
                           Mr. Glen F. Ceiley
                         Chairman of the Board
                   Family Steak Houses of Florida, Inc.
                         2113 Florida Boulevard
                       Neptune Beach, Florida 32266
                            (904) 249-4197
        (Name, address and telephone number of agent for service)
                             --------------
                               Copies To:
                         Halcyon E. Skinner, Esq.
                             McGuireWoods LLP
                    50 North Laura Street, Suite 3300
                       Jacksonville, Florida 32202
                            (904) 798-3200



Item 5. 	Other Events and Regulation FD Disclosure

Please see attached press release.




                              SIGNATURES

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



					Family Steak Houses of Florida, Inc.



                              /S/ Edward B. Alexander
                              --------------------------------------
                              Edward B. Alexander, Executive Vice President


                              January 11, 2002
                              --------------------------------------
                              Date

EX-99

Edward B. Alexander
Executive Vice President
(904) 249-4197						        January 11, 2002


                     FAMILY STEAK HOUSES OF FLORIDA, INC.
                           ----------------------

NEPTUNE BEACH, FLORIDA - On January 4, 2002, Family Steak Houses
of Florida, Inc. ("the Company"), was notified by its
Franchisor, Ryan's Family Steak Houses, Inc. ("Ryan's") that it
has exercised its option to terminate the exclusive nature of
the Company's franchise rights within North and Central Florida.
All other provisions of the Franchise Agreement remain in effect
including the Company's right to build Ryan's restaurants in
North and Central Florida. At December 31, 2001, the Company was
operating 23 restaurants rather than the 25 required by the
Franchise Agreement. The Company had previously requested that
Ryan's waive this requirement as well as renegotiate other terms
of the Franchise Agreement. All such requests were rejected by
Ryan's.

The Company is in the process of evaluating its options with
respect to the exclusivity and other Franchise Agreement issues,
including possible legal action through binding arbitration
proceedings seeking, among other things, the recision of Ryan's
exercise of its option to terminate the Company's exclusivity.
The Company's intention is to pursue a legal remedy if it is
deemed to be in its shareholders' best interest to do so.

Subsequent to January 4, 2002, the Company was advised by Ryan's
Chief Executive Officer that Ryan's current plans did not
include building any restaurants in the Company's territories in
2002 and that it will probably build a few restaurants in North
Florida in 2003. However, there are no assurances that Ryan's
will not decide to adopt a more aggressive building program in
the Company's territories.

Management believes that if Ryan's builds restaurants in the
Company's territories it will not have an adverse effect on the
Company's results of operations, although it could limit the
Company's potential to locate and develop suitable Ryan's
restaurant sites in the future.