Franchise Services of North America Inc. announces Third Quarter Results for Period Ending June 30, 2007

    -Expansion of Network Continues-

    TSX-V Trading Symbol: FSN

    CALGARY, Aug. 27 /CNW/ - Franchise Services of North America Inc. ("FSNA"
or the "Company") announced today its third quarter results for the period
ending June 30, 2007. Revenue for the nine months ending June 30, 2007 was USD
$9.8 Million and net income was USD $307,821, after consideration of
approximately USD $200,000 of one-time expenses related to the acquisition and
development of revenue from the newly acquired insurance agency. Both were in
line with management's expectations, and compare to revenue of CDN $473,029
and a net loss of CDN ($90,717) for the comparable period in the prior year.
    These numbers include only seven months of U-Save's results due to the
November 2006 Reverse Take-Over (RTO) between U-Save Auto Rental of America,
Inc. and the predecessor company, Rent-A-Wreck Capital Inc. Reference is
hereby made to the company's filings on Sedar, at, for a
detailed description of the RTO and the related financial information. The
Company also announced that unique visitors to the company's website
( continued to experience exponential growth in the quarter,
resulting in triple-digit booking growth.
    "The newly acquired insurance agency, and the insurance platform in
general, incurred a non-recurring investment of approximately USD $200,000 to
build the infrastructure for its anticipated MGA designation and the expansion
of its menu of insurance products. The insurance division currently represents
a significant percentage of the companies' revenue, and with this investment
we anticipate realization of the revenue stream to begin its increase in the
fourth quarter and into the 2008 fiscal year. The addition of this revenue
stream will enable us to continue our efforts to expand our franchise network
in North America for the U-Save brand and in Canada for the Rent-A-Wreck
brand. In addition, we continue to identify strong interest in new franchises
and currently have several quality candidates under consideration," said
Robert M. Barton, Chief Operating Officer of the Company.

    About FSNA
    In November 2006, U-Save Auto Rental of America, Inc. and Rent-A-Wreck
Capital Inc. completed a reverse takeover transaction. The resulting company,
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,
current expansion plans call 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 25 airport markets in 13 different states. U-Save Car Sales
is a recent expansion of the U-Save brand into the car sales market.
    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 August 27, 2007 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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