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


                                  SCHEDULE 13G
                                 (Rule 13d-102)

        INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULES
       13d-1(b), (c) AND (d) AND AMENDMENTS THERETO FILED PURSUANT TO RULE
                                    13d-2(b)

                               (Amendment No. 7)*


                         Friendly Ice Cream Corporation
--------------------------------------------------------------------------------
                                (Name of Issuer)


                     Common Stock, $0.01 par value per share
--------------------------------------------------------------------------------
                         (Title of Class of Securities)


                                   358497 10 5
--------------------------------------------------------------------------------
                                 (CUSIP Number)


                                December 31, 2005
--------------------------------------------------------------------------------
              Date of Event Which Requires Filing of This Statement


          Check the appropriate box to designate the rule pursuant to which this
          Schedule is filed:

          [ ]  Rule 13d-1(b)
          [ ]  Rule 13d-1(c)
          [X]  Rule 13d-1(d)


-------------------

     *   The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.

         The information required in the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).


------------------------------                         ------------------------
CUSIP NO. 358497 10 5                   13G                Page 2 of 6 Pages
------------------------------                         ------------------------

-------------------------------------------------------------------------------
1    NAME OF REPORTING PERSON:
     I.R.S. Identification No. of Above Person (Entities Only)

     Donald N. Smith
-------------------------------------------------------------------------------
2    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                         (a) [ ]
                                                                         (b) [ ]
-------------------------------------------------------------------------------
3    SEC USE ONLY
-------------------------------------------------------------------------------
4    CITIZENSHIP OR PLACE OF ORGANIZATION

     United States
-------------------------------------------------------------------------------
     NUMBER OF                    5   SOLE VOTING POWER
      SHARES                          738,178
   BENEFICIALLY                   ----------------------------------------------
     OWNED BY                     6   SHARED VOTING POWER
       EACH                           0
     REPORTING                    ----------------------------------------------
      PERSON                      7   SOLE DISPOSITIVE POWER
       WITH                           738,178
                                  ----------------------------------------------
                                  8   SHARED DISPOSITIVE POWER
                                      0
-------------------------------------------------------------------------------
9    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

     738,178
-------------------------------------------------------------------------------
10   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
                                                                             [ ]
-------------------------------------------------------------------------------
11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

     9.3%
--------------------------------------------------------------------------------
12   TYPE OF REPORTING PERSON*

     IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!

                                Page 2 of 6 pages


         The Schedules 13G filed on February 14, 2005, January 20, 2004, January
21, 2003, March 22, 2001, March 21, 2000, February 12, 1999 and February 25,
1998, respectively, are hereby amended and restated by this Amendment No. 7 to
such Schedules 13G.

Item 1(a). Name of Issuer:

           Friendly Ice Cream Corporation

Item 1(b). Address of Issuer's Principal Executive Offices:

           1855 Boston Road
           Wilbraham, MA 01095

Item 2(a). Name of Person Filing:

           Donald N. Smith

Item 2(b). Address of Principal Business Office, or if none, Residence:

           2431 Adamsway Drive
           Aurora, IL 60504

Item 2(c). Citizenship:

           United States

Item 2(d). Title of Class of Securities:

           Common Stock, $0.01 par value per share

Item 2(e). CUSIP Number:

           358497 10 5

Item 3.    If this statement is filed pursuant to Rule 13d-1(b), 13d-2(b),
           check whether the person filing is a:

           (a) [ ]    Broker or dealer registered under Section 15 of the
                      Exchange Act.
           (b) [ ]    Bank as defined in Section 3(a)(6) of the Exchange Act.
           (c) [ ]    Insurance company as defined in Section 3(a)(19) of the
                      Exchange Act.
           (d) [ ]    Investment company registered under Section 8 of the
                      Investment Company Act.
           (e) [ ]    An investment adviser in accordance with Rule
                      13d-1(b)(1)(ii)(E).
           (f) [ ]    An employee benefit plan or endowment fund in accordance
                      with Rule 13d-1(b)(1)(ii)(F).
           (g) [ ]    A parent holding company or control person in accordance
                      with Rule 13d-1(b)(1)(ii)(G).
           (h) [ ]    A savings association as defined in Section 3(b) of the
                      Federal Deposit Insurance Act.
           (i) [ ]    A church plan that is excluded from the definition of an
                      investment company under Section 3(c)(14) of the
                      Investment Company Act.
           (j) [ ]    Group, in accordance with Rule 13d-1(b)(1)(ii)(J).

                               Page 3 of 6 pages


Item 4.    Ownership

           (a)       Amount Beneficially Owned:

                     738,178

           (b)       Percent of Class:

                     9.3%

           (c)       Number of shares as to which such person has:

                     (i)   Sole power to vote or to direct the vote:

                           738,178

                     (ii)  Shared power to vote or to direct the vote:

                           0

                     (iii) Sole power to dispose or to direct the disposition
                           of:

                           738,178

                     (iv)  Shared power to dispose or to direct the disposition
                           of:

                           0

Item 5.    Ownership of Five Percent or Less of a Class of a Class:

           N/A

Item 6.    Ownership of More than Five Percent on Behalf of Another Person:

           N/A

                               Page 4 of 6 pages


Item 7.    Identification  and  Classification  of the Subsidiary  Which
           Acquired the Security Being Reported on By the Parent Holding Company
           or Control Person:

           N/A

Item 8.    Identification and Classification of Members of the Group:

           N/A

Item 9.    Notice of Dissolution of Group:

           N/A

Item 10.   Certification:

           N/A


            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                               Page 5 of 6 pages


                                    SIGNATURE

         After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.


                                                    2/10/2006
                                       -----------------------------------------
                                                      Date


                                             /s/ DONALD N. SMITH
                                       -----------------------------------------
                                                   Signature


                                                 Donald N. Smith
                                       -----------------------------------------
                                                   Name/Title


                                  Page 6 of 6