Franchise Services of North America Inc. provides update on delay in filing of audited year end financial statements

    TSX-V Trading Symbol: FSN

    CALGARY, Feb. 5 /CNW/ - On January 28th, 2008 FRANCHISE SERVICES OF NORTH
AMERICA INC. ("FSNA" or the "Company"), announced that it had delayed the
filing of its annual consolidated financial statements in respect of its
fiscal year ended September 30, 2007 (the "2007 Annual Financial Statements")
and that it would be applying to the Alberta Securities Commission (the "ASC")
for a management cease trade order. The 2007 Annual Financial Statements were,
pursuant to applicable Canadian securities laws, required to be filed no later
than January 28, 2008. The Company announced today that it has been advised by
the ASC that it has declined to grant the Company's application for a
management cease trade order, and will instead impose an issuer cease trade
order on the outstanding shares of FSNA that will prevent trading in FSNA
shares generally.
    Management of FSNA, under the supervision of its audit committee and
working closely with the Company's external auditors, is continuing to work
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
on or before February 29, 2008.

    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 February 4, 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,; Robert M. Barton, Chief Operating Officer, FSNA, (601)
713-4333 x 116,

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