Franchise Services of North America Inc. Announces the entering into of a Settlement Agreement with Macquarie Capital (USA) Inc. and certain other Parties

TSX-V Trading Symbol: FSN

CALGARY, Oct. 31, 2018 /CNW/ - FRANCHISE SERVICES OF NORTH AMERICA INC. ("FSNA" or the "Company") (FSN.V) announces it has entered into a settlement agreement with Macquarie Capital (USA) Inc. ("Macquarie") together with certain related individuals, Thomas P. McDonnell III and Boketo LLC ("Boketo"), (collectively the "Parties") pursuant to which the Parties have agreed to resolve all outstanding claims and litigation between them arising in connection with the Company's acquisition of Simply Wheelz LLC and certain related assets and the subsequent bankruptcy of Simply Wheelz LLC (the "Settlement"). Pursuant to the Settlement, Boketo, a wholly owned subsidiary of Macquarie, will transfer and surrender 62,212,600 shares of FSNA Preferred Stock (the "Preferred Stock") within two business days of September 18, 2018. The Preferred Stock will automatically convert into FSNA common stock immediately prior to its transfer and surrender in accordance with FSNA's charter documents and the terms of the Stockholders Agreement among FSNA, Boketo, and Thomas P. McDonnell, III, dated March 26, 2013, which was previously described in our press release on May 3, 2013. In connection with its surrender of the Preferred Stock, Boketo will also surrender all of its rights as a stockholder of the Company.  In addition, Boketo will cause each of Messrs. Duncan Murdoch, David Miller, and James Forrest, in their capacity as directors of the Company, to submit a letter of resignation within two business days of September 18, 2018.

About FSNA

FSNA is a publicly traded company listed on the TSX Venture Exchange. The Company and its subsidiaries own the following brands: U-Save Car & Truck Rental® ("U-Save"), U-Save Car Sales, Auto Rental Resource Center ("ARRC"), Xpress Rent A Car and Peakstone Financial Services.

U-Save, together with its subsidiary ARRC, has over 900 locations throughout the United States and is one of North America's largest franchise car rental companies. U-Save currently services 19 airport markets in 13 different states. Although primarily based in the United States, U-Save has 18 international locations in Mexico, Greece, the Middle East, Latin America, and the Caribbean.

Forward-Looking Information

Certain statements made in this news release are forward looking in nature, including statements made with respect to transfer of Preferred Stock, relinquishment of stockholder rights, and resignation of certain directors. The words "may," "could," "should," "would," "expect," "intend," "estimate," "anticipate," "believe," or "outlook" and similar expressions often identify forward-looking information. By their nature, forward-looking statements require FSNA to make assumptions and are subject to inherent risks and uncertainties. The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by FSNA, including with respect to the satisfaction of conditions contained in the Settlement Agreement. Although FSNA believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because FSNA can give no assurance that they will prove to be correct. There can be no assurance that the transfer of Preferred Stock, relinquishment of stockholder rights, and resignation of certain directors will be completed as proposed or at all. FSNA's forward-looking statements are qualified in their entirety by these cautionary statements. In addition, the forward-looking statements are made only as of the date of this news release, and except as required by applicable law, FSNA undertakes no obligation to publicly update these forward looking statements to reflect new information, subsequent events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Franchise Services of North America Inc.