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): November 19, 2004



                               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
- ----------------------------------------       -------------------------
              (Address)                               (Zip Code)

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

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


     Check the  appropriate  box below if the Form 8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions:

     [ ] Written  communications  pursuant to Rule 425 under the  Securities Act
(17 CFR 230.425)

     [ ] Soliciting  material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)

     [ ]  Pre-commencement  communications  pursuant to Rule 14d-2(b)  under the
Exchange Act (17 CFR 240.14d-2(b))

     [ ]  Pre-commencement  communications  pursuant to Rule 13e-4(c)  under the
Exchange Act (17 CFR 240.13e-4(c))



     ITEM 4.02  Non-Reliance  on  Previously  Issued  Financial  Statements or a
Related Audit Report or Completed Interim Review

     On November 19, 2004, Avado Brands, Inc. (the "Company") concluded that the
Company's  previously  filed  financial  statements,   including  the  financial
statements  for the years ended  December 30, 2001 and  December  29, 2002,  the
quarterly  financial  statements  issued  during those years,  and the financial
statements  for each of the first  three  quarters  of 2003  should no longer be
relied upon because of errors in such financial statements.  The Company,  which
on February 4, 2004 filed voluntary  petitions in the U.S.  Bankruptcy Court for
the Northern District of Texas (the "Bankruptcy Court") for relief under Chapter
11 of the U.S. Bankruptcy Code, has not yet filed its Annual Report on Form 10-K
for the year ended  December 28, 2003 or its Quarterly  Reports on Form 10-Q for
the quarters  ended March 28, 2004,  June 27, 2004 and September  26, 2004.  The
monthly  operating reports the Company has furnished to the Bankruptcy Court and
filed on Form 8-K since the filing of the Company's  Chapter 11 petition,  which
are not prepared on the basis of generally accepted accounting principles,  also
contain such errors.

     The conclusion  was reached as part of an evaluation of the  application of
the Company's accounting policies and generally accepted accounting  principles.
A general description of the material errors identified is set forth below.

     Rent Expense

     The Company has  historically  had a policy of recording  rent expense on a
straight-line  basis over the initial  lease term.  The Company now believes the
proper  treatment for rent that  escalates  over time should be to recognize the
expense  on a  straight-line  basis over the lease  term  (inclusive  of renewal
options the Company is  reasonably  expected to  exercise)  rather than over the
initial term of the lease.  The Company  believes that the resulting  cumulative
understatement of rent expense and the cumulative understatement of accrued rent
expense liability,  as of December 28, 2003, is in the range of $14.0 million to
$16.0  million.  Previously  reported rent  expense,  which is included in other
operating  expenses,  for the fiscal years ended  December 30, 2001 and December
29,  2002 was  $33.4  million  and  $24.0  million,  respectively.  The  Company
estimates  that  rent  expense  for  this  two-year   period  will  increase  by
approximately $2.5 million.  Such estimates are subject to change as the Company
completes its evaluation.  The cumulative understatement of rent expense and the
understatement of rent expense for the aforementioned  fiscal years represents a
non-cash understatement of previously reported rent expense.

     Fixed Assets

     An evaluation of the Company's premises and equipment  accounting practices
identified  certain errors  resulting in an  overstatement  of recorded net book
values.  In addition,  the  Company's  depreciable  lives for certain  leasehold
improvements  have  historically been based upon the useful lives of the assets,
which for certain  leasehold  improvements  is longer than the remaining term of
the associated lease,  including  available  renewal option periods.  Because of
these  errors,  the Company  estimates  the net book value of its  premises  and
equipment was overstated by approximately  $5.0 million as of December 28, 2003.
The Company estimates that  approximately $2.8 million of this error occurred in
the fiscal years prior to the year ended  December 30,  2001.  This  estimate is
subject  to change as the  Company  completes  its  evaluation.  The  Company is
currently  evaluating the effect of the remaining errors on individual  periods.
The previously  reported net book value of premises and equipment as of December
30,  2001  and  December  29,  2002  was  $283.0  million  and  $237.0  million,
respectively.  The adjustment to correct this overstatement of net book value of
premises and equipment will represent a non-cash charge.

     Employee Partner Programs

     Certain of the Company's  employee partner programs,  which were amended in
2002, have been historically  accounted for as ownership interests.  The Company
now believes that they should have been accounted for as compensation agreements
from the date of the  amendment.  The  cumulative  effect of this  error,  as of
December 28, 2003,  is  estimated to be less than $0.5  million.  The Company is
currently evaluating the effect of this error on individual periods.

     Other

     On November  22, 2004,  the  Bankruptcy  Court  approved a motion to retain
Alston & Bird  LLP as  special  counsel  to the  Company's  Audit  Committee  in
connection  with  the  Audit  Committee's  review  of  certain  past  accounting
practices, including those described above.

     Both the  Company's  Audit  Committee  and the  Company's  management  have
discussed  with  Deloitte  &  Touche  LLP,  the  Company's  current  independent
auditors,  the matters  disclosed in this Current  Report on Form 8-K. KPMG LLP,
the Company's predecessor  independent auditors through March 30, 2004, has been
advised of the matters  disclosed  herein.


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                                   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
                                         ----------------------
                                         Louis J. Profumo
                                         Chief Financial Officer


Date: November 24, 2004


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