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 /CNW/ - 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 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

    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.

    %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,; Robert M. Barton, Chief Operating Officer, FSNA, (601)
713-4333 x 116,

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