October 22, 2002





Ronald Parker
Pizza Inn, Inc.
3551 Plano Parkway
The Colony, Texas 75056

Dear Ronald Parker:

We have learned of the following breaches of the terms of your Loan
Agreement with WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION ("Bank") dated as of
March 31, 2000 (the "Agreement"):

1. Section 12.1 Current Ratio

Subject to the terms and conditions set forth herein, Bank has decided to
waive its default rights with respect to these breaches for the dates ended
September 29, 2002, through the period ending on or about November 30,2002.
Prior to the maturity of this waiver, Bank anticipates working on the renewal of
the Loan Agreement with Borrower. This waiver applies only to the specific
instances described above. It is not a waiver of any subsequent breach of the
same provisions of the Agreement, nor is it a waiver of any breach of any other
provision of the Agreement.

Except as expressly stated in this letter, Bank reserves all of the rights,
powers and remedies available to Bank under the Agreement and any other
contracts or instruments signed by you, including the right to cease making
advances to you and the right to accelerate any of your indebtedness, or if any
subsequent breach of the same provisions or any other provision of the Agreement
should occur.

Sincerely,

WELLS FARGO BANK TEXAS,
NATIONAL ASSOCIATION

/s/ Austin D. Nettle
By: Austin D. Nettle
Title: Vice President