Franchise Services of North America Inc. (FSNA) has retained Equity Partners HG to seek a buyer for its wholly-owned subsidiary U-Save Holdings Inc.
Last month, FSNA filed for Chapter 11 bankruptcy protection. According to the company, it did this to best preserve the value of its assets for the benefit of creditors and shareholders.
U-Save and its subsidiaries grant franchises for the operation of vehicle rental stores under the U-Save Car and Truck Rental and U-Save Car Sales brands. These franchisees — along with independent car rental associates under the company’s subsidiary, Auto Rental Resource Center Inc.’s business model — operate in more than 650 locations throughout the United 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.
“While U-Save’s franchising operations generate fees from the sale of each franchise, it is the company's royalty and reservations income, and the sale of insurance products that provide a long-term revenue stream,” says Hank Waida, managing director at Equity Partners HG.
Unique to the U-Save business model is the ability to offer all franchises the services of its insurance subsidiary, Peakstone Financial Services Inc. (Sonoran National Insurance Group) to provide a “one-stop” shopping point for all of a client’s insurance needs related to its business requirements.
Sonoran coordinates insurance services with approved insurance carriers for liability and physical damage coverage for nearly 5,000 vehicles within the U-Save system and provides similar insurance products and other services to nearly 1,000 independent auto rental companies – comprising an additional fleet of vehicles under coverage approaching 8,000.
Equity Partners HG, formerly Heritage Equity Partners, provides investment banking services and has completed in excess of 400 engagements throughout the U.S. since 1988.