Franchise Services of North America Inc. delays filing of audited year end financial statements



    TSX-V Trading Symbol: FSN

    CALGARY, Jan. 28 /CNW/ - FRANCHISE SERVICES OF NORTH AMERICA INC. ("FSNA"
or the "Company") announced today that it has delayed the filing of its annual
consolidated financial statements for its fiscal year ended September 30, 2007
(the "2007 Annual Financial Statements") which are, pursuant to applicable
Canadian securities laws, required to be filed no later than January 28, 2008.
Management of FSNA, under the supervision of its audit committee and working
closely with the Company's external auditors, is working hard to ensure that
the 2007 Annual Financial Statements will be completed and filed as soon as
possible. The 2007 Annual Financial Statements are the first set of annual
financial statements to be prepared following the completion by the Company of
a cross-border reverse take-over transaction in late 2006. The delay in filing
such statements relates in part to the challenge of combining FSNA's United
States and Canadian operations, as well as conforming financial periods and
accounting standards. Based on the work completed to date, management
anticipates that the 2007 Annual Financial Statements will be filed in
February prior to the required filing of the first quarter fiscal 2008 report
due on or before February 29, 2008.
    As a result of the delay in filing the 2007 Annual Financial Statements,
FSNA has requested the Alberta Securities Commission and other Canadian
securities regulatory authorities to issue a temporary order that prohibits
directors, officers and other insiders of the Company from trading in
securities of FSNA until the 2007 Annual Financial Statements are filed. FSNA
has also extended its management trading black-out until such date. The
issuance of such a cease trade order and extension of the blackout period
would generally not affect the ability of persons who are not directors,
officers, or other senior members of management or other insiders to trade
FSNA shares. The Company intends to provide information in accordance with
Ontario Securities Commission Policy 57-603, "Defaults by Reporting Issuers in
Complying with Financial Statement Filing Requirements" ("OSC Policy 57-603")
and CSA Staff Notice 57-301, "Failing to File Financial Statements on Time -
Management Cease Trade Orders" ("CSA Staff Notice 57-301") for as long as the
2007 Annual Financial Statements remain unfiled. In the event that the 2007
Annual Financial Statements are not filed by March 28, 2008, or bi-weekly
status update reports are not filed on a timely basis, the Canadian securities
regulatory authorities may impose an issuer cease trade order on the
outstanding shares of FSNA. In addition, it is likely that the Canadian
securities regulatory authorities will impose an issuer cease trade order
while they consider FSNA's application. The issuance of an issuer cease trade
order would prevent trading in FSNA shares generally.
    This default announcement is provided pursuant to OSC Policy 57-603 and
CSA Staff Notice 57-301. Pending the filing of the 2007 Annual Financial
Statements, FSNA intends to satisfy the provisions of the Alternative
Information Guidelines.
    FSNA confirms that there are no insolvency proceedings against it as of
the date herein. FSNA also confirms that there is no other material
information concerning its affairs that has not been generally disclosed as of
the date hereof.

    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 www.sedar.com. Information in this document is presented
as of January 28, 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
except as required by applicable law.

    The TSX venture exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.


    %SEDAR: 00010981E




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, www.fsna-inc.com


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