Franchise Services of North America Inc. Provides Update on the Filing of its Financial Results for the Year Ended September 30, 2007



    TSX-V Trading Symbol: FSN

    CALGARY, Feb. 22 /CNW/ -  FRANCHISE SERVICES OF NORTH AMERICA INC.
("FSNA" or the "Company") announced today that it anticipates that it will
file its audited annual consolidated financial statements for the fiscal year
ended September 30, 2007 (the "2007 Annual Financial Statements") during the
week of February 25, 2008 and will file its financial statements for the
quarter ended December 31, 2007 on February 29, 2008.
    On January 28, 2008, FSNA announced that it had delayed the filing of the
2007 Annual Financial Statements, which were, pursuant to applicable Canadian
securities laws, required to be filed no later than January 28, 2008. As a
result, cease trade orders were issued by the Alberta Securities Commission,
the British Columbia Securities Commission and the Ontario Securities
Commission. The Toronto Venture Exchange ("TSX-V") also suspended trading in
FSNA's common shares. In addition, as a result of the failure to have such
cease trade orders rescinded by February 20, 2008, it is possible that the
Company will become a Tier 2 Issuer on the TSX-V, however management is
currently in discussions with the TSX-V on this issue. Lastly, the Company's
continuous disclosure record has been selected for review by the ASC and FSNA
has received from the ASC a request for information and clarification of
certain points focused primarily on the manner in which the November, 2006
Business Combination Transaction ("BCT") between U-Save and Rent-A-Wreck
Capital Inc. (now FSNA) has been accounted for. Management of the Company is
presently preparing its response to the ASC but believes that many of the
issues raised by the ASC will be addressed in the 2007 Annual Financial
Statements once filed.
    During the audit of the 2007 Annual Financial Statements, it was
determined that the methodology utilized by the Company in reporting the BCT
in its unaudited quarters was not in full compliance with Canadian Generally
Accepted Accounting Principles ("GAAP"). Previously, the Company had reported
that the Canadian public company (Rent A Wreck Capital, Inc., which was
renamed Franchise Services of North America as part of the BCT), was the
acquiring entity. While this remains true in the legal sense, in accordance
with Canadian GAAP, U- Save is the acquiring entity for accounting purposes
with the result that prior comparable periods should be those of U-Save and
not Rent-A-Wreck. Accordingly, the quarterly financial statements that have
been filed subsequent to the BCT should not be relied upon. Instead,
shareholders should refer to the 2007 Annual Financial Statements, once filed,
which will address the quarterly filings and present unaudited restated
quarterly information.
    A copy of this press release is being mailed to FSNA's shareholders.

    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 www.sedar.com. Information in this document is presented
as of February 22, 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 neither approved or disapproved the contents
    of this press release.

    %SEDAR: 00010981E




For further information:

For further information: on FSNA or any of its operating subsidiaries
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


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890