TSX-V Trading Symbol: FSN
CALGARY, Oct. 9 /CNW/ - Franchise Services of North America Inc. ("FSNA"
or the "Company") announced today the sale of three new Rent-A-Wreck
Franchises in Oyen, Alberta, and two additional locations in the Greater
Toronto Area. The Oyen location is already open and renting cars, while the
Toronto locations are planning for their grand openings on October 17.
Bob Barton, the Company's Chief Operating Officer stated, "We are quite
pleased with the continued expansion of the Rent-A-Wreck system in Canada and
welcome these new franchisees to our network."
As it relates to the current economic conditions and its effect on the
Company, Mr. Barton also made the following statement, "In light of the
current unfavorable capital market conditions, we wish to inform our
shareholders of our continued success in selling franchises during this
difficult economic period. The Company currently has several candidates under
consideration for U-Save franchises in the United States, and has been advised
by the U-Save master franchisee in Ontario of several candidates also
considering U-Save franchises in that province. We wish to remind the
investment community that with the exception of a working capital facility
which has already been successfully renewed through December 2009, the Company
has no other external third-party debt. While the credit markets continue to
place significant strain on the economic conditions throughout North America,
the Company, as a franchisor, does not require any fleet financing and is not
subject to the constraints currently being experienced in the capital markets.
Our franchisees continue to finance their own fleets, and we have already been
advised by many of our franchisees of 2009 fleet orders made with automobile
manufacturers. The Company continues to provide competitive insurance products
to its franchisees for fleet operations.
FSNA is a publicly traded company listed 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 Financial Services.
U-Save, together 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 27 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 55 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.
Certain statements made in this news release are forward looking
including statements regarding the Company's expansion plans. 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. There is
significant risk that predictions, forecasts, conclusions and projections will
not prove to be accurate, that FSNA's assumptions may not be correct and that
actual results may differ materially from such predictions, forecasts,
conclusions or projections. With respect to these forward-looking statements,
we have assumed, among other things, that the Toronto franchisees will open on
October 17, 2008 and begin renting vehicles. We have also assumed that we will
be able to continue to expand into the North American airport market. If such
assumptions prove incorrect, there is a risk that the Company's statements
regarding its expansion plans could prove materially incorrect. 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 law, FSNA
undertakes no obligation to publicly update these forward-looking statements
to reflect new information, subsequent events or otherwise.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: on FSNA or any of its operating subsidiaries
please contact: Alison Tullis, CHF Investor Relations, (416) 868-1079 x 233,
Alison@chfir.com; Robert M. Barton, Chief Operating Officer, FSNA, (601)
713-4333 x 116, firstname.lastname@example.org