TSX-V Trading Symbol: FSN
RIDGELAND, MS, Jan. 24, 2014 /CNW/ - FRANCHISE SERVICES OF NORTH AMERICA INC. ("FSNA" or the "Company") (FSN.V) announces that the Company's wholly-owned subsidiary, Simply
Wheelz LLC ("Simply Wheelz"), which does business as Advantage Rent a Car ("Advantage"), has determined to cease operations at 30 Advantage locations
effective January 24, 2014. Advantage has reached an agreement with
Dollar Rent A Car whereby Dollar Rent A Car has agreed to provide car
rental services to those customers who hold active Advantage
reservations at all closed locations beginning January 24, 2014.
The decision to cease operations at certain Advantage locations was made
in connection with the previously announced proposed sale of Advantage
assets to The Catalyst Capital Group Inc. (on behalf of one or more
funds managed by it) ("Catalyst") as the prevailing purchaser in the auction of certain Advantage
assets as part of the Simply Wheelz insolvency proceedings, as approved
by the United States Bankruptcy Court for the Southern District of
Simply Wheelz hopes to complete its sale to Catalyst in the first
quarter of 2014. However, the Company will need to complete a number
of procedural matters and arrangements with third parties before this
sale can be consummated. One such matter involves a careful internal
review of the 70 operating locations across the United States.
Accordingly, in order to help strengthen and position the Advantage
brand for sustainable growth going forward, Advantage made the decision
to cease operations at 30 of these locations as described in this press
FSNA is a publicly traded company listed on the TSX Venture Exchange.
The Company and its subsidiaries own the following brands: Advantage
Rent A Car, U-Save Car & Truck Rental® ("U-Save"), U-Save Car Sales, Rent-A-Wreck of Canada, PractiCar, Auto Rental
Resource Center ("ARRC"), Xpress Rent A Car and Peakstone Financial Services.
U-Save, together with its subsidiary ARRC, has over 900 locations
throughout the United States and is one of North America's largest
franchise car rental companies. U-Save currently services 19 airport
markets in 13 different states. Although primarily based in the United
States, U-Save has 18 international locations in Mexico, Greece, the
Middle East, Latin America, and the Caribbean.
Practicar Systems Inc. owns the rights to the Rent-A-Wreck® and the
PractiCar® trademarks for all of Canada. The Rent-A-Wreck® system
operates a network of 61 franchise locations from coast-to-coast in
Canada, providing a range of vehicle rental, leasing and sales options
to its customers. The Rent-A-Wreck® system has been in continuous
operation in Canada since 1976.
Certain statements made in this news release are forward-looking in
nature, including statements concerning the ability of Simply Wheelz to
complete its sale transaction with Catalyst and the time at which such
sale might be completed. The words "may", "could", "should", "would",
"expect", "intend", "estimate", "anticipate", "believe", or "outlook"
and similar expressions often identify forward-looking information. By
their nature, forward-looking statements require FSNA to make
assumptions and are subject to inherent risks and uncertainties. The
forward-looking statements contained in this news release are based on
certain key expectations and assumptions made by FSNA, including with
respect to timing for closure of certain Advantage operating locations
and FSNA's ability to complete a sale transaction with Catalyst and the
time at which such sale might be completed. Although FSNA believes that
the expectations and assumptions on which the forward-looking
statements are based are reasonable, undue reliance should not be
placed on the forward-looking statements because FSNA can give no
assurance that they will prove to be correct. These forward-looking
statements also involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or
achievements of FSNA to differ materially from the anticipated results,
performance or achievements or developments expressed or implied by
such forward-looking statements. Such factors include risks discussed
in the section entitled "Risk Factors" in FSNA's management information
circular dated March 28, 2013 filed with Canadian securities
regulators. If any such risks actually occur, they could materially and
adversely affect FSNA's business, financial condition or results of
operations. FSNA's forward-looking statements are qualified in their
entirety by these cautionary statements. In addition, the
forward-looking statements are made only as of the date of this news
release, and except as required by applicable securities law, FSNA
undertakes no obligation to publicly update these forward-looking
statements to reflect new information, subsequent events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Franchise Services of North America Inc.
For further information:
For further information on FSNA or any of its operating subsidiaries please contact:
Thomas P. McDonnell, III
Franchise Services of North America Inc.