Franchise Services of North America Inc. Announces New Franchises for U-Save and Rent A Wreck Canada
- Expansion of the system continues both domestically and internationally -
TSX-V Trading Symbol: FSN
CALGARY, Jan. 7 /PRNewswire-FirstCall/ - Franchise Services of North
America Inc. ("FSNA" or the "Company") announced today the signing of a
U-Save Master Franchise Agreement for the Country of Mexico, a new U-Save
airport franchise in Colorado Springs, Colorado, and a new Rent A Wreck
franchise in Gormley, Ontario. The Gormley and Colorado Springs locations
will open immediately; Guadalajara and Puerto Vallarta, the first two
operating locations under the Mexico Master Agreement, are expected to
begin operating under the U-Save brand later this spring.
"We are extremely excited about these new franchise locations and the
continued development of the system. The original business model called for
the company to focus its growth efforts on operating in the top 30 airports
in North America. Whereas the company has made good progress in reaching
those goals in the first year since becoming a publicly traded entity, the
interest in the U-Save brand internationally and from the top 50 airports
has been very promising and we continue to pursue these opportunities as
well. The Colorado Springs airport location is particularly interesting as
they were a member of our ARRC association. As a result of utilizing the
services and resources available to them through the association they were
able to grow their business and become a full-fledged U-Save franchise.
This organic growth is a direct result of the synergies provided between
the divisions of the Company," commented Robert M. Barton, Executive Vice
President and Chief Operating Officer of FSNA.
Franchise sales activity continues to be a major focal point of the
Company's effort to expand the points of distribution and to broaden
awareness of the U-Save brand internationally and the Rent A Wreck brand in
Canada. The Company currently has several other candidates under
consideration to further expand both brands.
About FSNA
----------
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, with its subsidiary ARRC, has over 1,100 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, the company is expanding into the airport market with plans 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 26 airport
markets in 14 different states. U-Save Car Sales is an expansion of the
U-Save brand into the car sales market, and provides goods and services to
car sales operators looking to affiliate with a national brand.
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
---------------------------
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 7, 2008 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.
SOURCE Franchise Services of North America Inc.
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