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 (Date of Earliest Event Reported): July 1, 2003



                               AVADO BRANDS, INC.
             ------------------------------------------------------
             (Exact name of Registrant as Specified in its Charter)


             Georgia                    0-19542               59-2778983
- -------------------------------     ----------------      -------------------
(State or other Jurisdiction of     (Commission File         (IRS Employer
Incorporation or Organization)          Number)           Identification No.)


         Hancock at Washington
           Madison, Georgia                              30650
- ----------------------------------------       -------------------------


       Registrant's telephone number, including area code: (706) 342-4552

                                 Not Applicable
          (Former name or former address, if changed since last report)





     ITEM 7. FINANCIAL STATEMENTS, PRO FORMA INFORMATION AND EXHIBITS

     (a) Financial Statements of Businesses Acquired:

     None.

     (b) Pro Forma Financial Information:

     None.

     (c) Exhibits:

     99.1 Avado Brands,  Inc.  press  release dated July 1, 2003,  commenting on
what it considers to be baseless claims,  seeking payment acceleration,  made by
certain noteholders of the Company.


     ITEM 9. REGULATION FD DISCLOSURE

     Avado Brands, Inc. is furnishing the following information and Exhibit 99.1
pursuant to Item 9 of Form 8-K

     On July, 1, 2003, the Company issued a press release  commenting on what it
considers to be baseless claims,  seeking payment acceleration,  made by certain
noteholders  of the Company.  A copy of the press release is attached as Exhibit
99.1.  This  information  is  furnished  solely  pursuant to Item 9 of Form 8-K.
Consequently,  it is not deemed  "filed"  for the  purposes of Section 18 of the
Securities Exchange Act of 1934, or otherwise subject to the liabilities of that
section.  It may only be  incorporated  by reference in another filing under the
Exchange Act or Securities Act of 1933 if such  subsequent  filing  specifically
references this Form 8-K.


                                        2


                                   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.


                                         AVADO BRANDS, INC.


                                         By:/s/Louis J. Profumo
                                         ----------------------
                                         Chief Financial Officer


Date:  July 1, 2003


                                        3

EX-99

                                                                    EXHIBIT 99.1


              Avado Brands Comments on Baseless Noteholders' Claim


     Madison,  GA.,  July 1, 2003 - Avado  Brands,  Inc.  (OTC BB:  AVDO)  today
announced that a noteholders' claim, seeking payment acceleration, is completely
without merit.

     "We have met all the terms and  covenants of our debt and there is no basis
for these  noteholders  to seek  payment  acceleration,"  said Louis J.  (Dusty)
Profumo,  Avado's  Chief  Financial  Officer  and  Treasurer.  "As we  announced
earlier,  Avado made its  semi-annual  interest  payments on both its senior and
senior  subordinated  notes that were due in June 2003,  and the  Company  fully
expects to pay the interest  obligations  on its notes due in December  2003 and
beyond. Further, we are in full compliance with all other terms and covenants of
our secured and unsecured debt." Avado's  Chairman and Chief Executive  Officer,
Tom DuPree,  Jr. noted, "We remain focused on our business of providing superior
food and service to our valued  customers  while meeting our  commitments to all
our  stakeholders."

     Avado Brands owns and operates two proprietary brands, comprised of 109 Don
Pablo's Mexican Kitchens and 65 Hops Restaurant o Bar o Breweries. Additionally,
the Company operates two Canyon Cafe restaurants, which are held for sale.

     Statements contained in the press release that are not historical facts are
forward-looking  statements  as that term is defined in the  Private  Securities
Litigation  Reform Act of 1995.  All  forward-looking  statements are subject to
risks and  uncertainties  which could cause actual  results to differ from those
anticipated.   Factors  that  may  cause  actual  results  to  differ  from  the
forward-looking  statements  contained  in this  release and that may affect the
Company's  prospects in general are  described in Exhibit 99.1 to the  Company's
Form 10-Q for the fiscal  quarter ended April 2, 2000,  and the Company's  other
filings with the Securities and Exchange Commission.