Franchise Services of North America Inc. (FSNA) announced today that it has settled the material terms of a master franchise agreement with the principals of 6560881 Canada Inc. (“6560881”), a corporation based in the Province of Ontario, Canada for the development of U-Save franchises in Ontario. The initial term of the agreement will be for 10 years, and can be extended at the election of 6560881, for four additional 10 year periods. The parties hope to finalize the definitive master franchise agreement after the expiration of the 14 day waiting period that commenced upon delivery by the Company of a franchise disclosure document in accordance with Ontario law.
"We are very excited to advance our plans for the Ontario market. This is all part of our continuing expansion strategy. Finalization of the master agreement for the entire Province of Ontario and completion of the transaction with 6560881 will allow us to grow rapidly in this market utilizing the expertise and knowledge of a local company. This is a great step in our continued development plans for the U-Save brand globally," said Robert M. Barton, Chief Operating Officer of 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 Auto Rental of America, Inc., with its subsidiary ARRC (Auto Rental Resource Center), has over 1100 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 24 airport markets in twelve 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® trademark for all of Canada. The Rent-A-Wreck® 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® system has been in continuous operation in Canada since 1976.
For more information, visit www.fsna-inc.com.