CALGARY, Jan. 29 /PRNewswire-FirstCall/ -- Franchise Services of North America Inc. ("FSNA" or the "Company") announced today that, further to its press release of January 9, 2007, its wholly-owned subsidiary, U-Save Auto Rental of America, Inc., has executed a master franchise agreement with the principals of 6560881 Canada Inc. ("6560881"), a corporation based in the Province of Ontario, Canada for the licensing of U-Save franchises in Ontario. The initial term of the agreement is 10 years, and can be extended at the election of 6560881, for four additional 10 year periods. In connection with the execution of the agreement, the Company has received the initial franchise development fee from 6560881.
"We are extremely pleased to announce that the agreement has been formalized and the new master franchisee can actively solicit candidates in Ontario. The principals of 6560881 have our full support to assist in the development of the U-Save brand into Ontario," said Robert M. Barton, Chief Operating Officer of the Company.
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 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 online at http://www.sedar.com/. Information in this document is presented as of January 29, 2006 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.
