JACKSON, MS, Jan. 23 /PRNewswire-FirstCall/ -- Franchise Services of North America Inc. ("FSNA" or the "Company") announced today that it has signed a letter of intent with Mr. Abdul Wahed Al Kooheji to enter into a Master Franchise Agreement covering seven countries in the Middle East. The agreement will grant exclusive rights to Mr. Al Kooheji for the development of U-Save Auto Rental businesses in the Kingdom of Bahrain, United Arab Emirates, Sultanate of Oman, Saudi Arabia, Qatar, Kuwait and Morocco.
"As the owner of the Century 21 Master Franchise in parts of the Middle East, and having operated Avis Rent A Car and other US restaurant brands in the region, we believe Mr. Al Kooheji will be a great asset to our company," said Robert M. Barton, Chief Operating Officer, FSNA. "His extensive experience in the franchise industry and success in the real estate business allows us an opportunity to grow our brand in markets where we have not yet had a presence."
About FSNA ----------
In November, 2006, U-Save Auto Rental of America, Inc. and Rent-A-Wreck Capital Inc. completed a reverse takeover transaction. The resulting company, FSNA, is a publicly traded company on the TSX Venture Exchange. The company and its subsidiaries own the following brands: U-Save Car & Truck Rental, U-Save Car Sales, Rent-A-Wreck of Canada, Auto Rental Resource Center (ARRC), Xpress Rent A Car and Peakstone Insurance.
U-Save Auto Rental of America, Inc., with its subsidiary ARRC (Auto Rental Resource Center), has over 1100 locations throughout the United States and is one of North America's largest franchise car rental companies. Having primarily serviced the local market for the past 25 years, current expansion plans call for the opening of airport locations in the top 30 markets in the United States and the major airports in Canada. U-Save(R) currently services 24 airport markets in twelve different states. U-Save Car Sales is a recent expansion of the U-Save brand into the car sales market.
Practicar Systems Inc. (a wholly owned subsidiary of FSNA) owns the rights to the Rent-A-Wreck(R) trademark for all of Canada. The Rent-A-Wreck(R) system operates a network of 50 franchises from coast-to-coast in Canada, providing a range of vehicle rental, leasing and sales options to its customers. The Rent-A-Wreck(R) system has been in continuous operation in Canada since 1976.
Forward-Looking Information
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Certain information included in this press release is of a forward-looking nature. Forward-looking information is subject to known and unknown risks, as well as uncertainties and other factors. Accordingly, actual results may differ materially from those expressed or implied in forward-looking information. Some of the risks, uncertainties and other factors affecting FSNA are discussed in our public filings with the securities regulatory authorities in Canada. Copies of FSNA's Canadian filings, including our most recent management information circular, annual information form, interim financial statements, material change reports and news releases, are available on line at http://www.sedar.com/. Information in this document is presented as of January 23, 2007 and is subject to change after this date. However, FSNA disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
The TSX Venture Exchange has in no way passed upon the merits of this
transaction and has neither approved or disapproved the contents of this
press release.
