FSNA Reports Revenue Drop While Net Loss Decreased in 2011

Franchise Services Of North America Inc. (FSNA) announced Dec. 29 its financial results for the fiscal year ended Sept. 30, 2011. Revenue and the net loss for the year were $15,888,701 and $316,940 respectively, as compared to revenue of $16,212,522 and a net loss of $732,595 for year ended Sept. 30, 2010. FSNA also announced the sale of six franchise locations.

Tom McDonnell, FSNA’s co-chairman and co-CEO, stated, “While we are pleased with the reduction in net loss as compared to the prior year, during fiscal 2011 we continued to experience some unanticipated incremental run-off claims from the insurance portfolios that were moved to a first dollar program.”

Sandy Miller, also an FSNA co-chairman and co-CEO, added, “Though franchise sales activity continues to be challenging, the company is continuing its efforts to expand its airport and neighborhood presence. Candidates are continuing to find challenges in the credit markets to obtain adequate fleet financing.

“Despite these ongoing challenges, we are pleased to announce the sale of six new Practicar franchises in Ontario and Alberta. The sales of Simcoe, Etobicoke and Thunder Bay, Ontario were completed, and the revenue was reflected in our fiscal fourth quarter for the year ended Sept. 30, 2011. Additionally, sales of Lacombe, Alberta; Carleton Place, Ontario and Finch & Bathurst, Ontario were completed after our fiscal year end, and revenue from these sales will be reflected in the first quarter of our fiscal year ending Sept. 30, 2012.”

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