Franchise Services of North America Inc. (TSXV:
FSN) is the largest car rental franchisor in North America. The Company
operates in the car, van and light truck rental arena, while also providing a
broad range of insurance products, both business and personal, to its
franchisees, the automobile industry, and consumers.
As an umbrella company, it owns and operates the following brands:
U-Save Car & Truck Rental
, U-Save Car Sales,
Auto Rental Resource Center (ARRC)
and Peakstone Financial Services.
The Company is well buffered from turmoil in the US and Global economies
since FSNA incurs very little risk and uses a small working capital line of
credit when needed. Car rentals can be expected to increase during difficult
Unique to FSNA's model is having Peakstone as a wholly-owned subsidiary to
offer all franchisees a one-stop shopping point for all insurance needs.
Subsidiaries and franchisees have solid business models to follow allowing
FSNA’s board and management to work aggressively to find new opportunities for
their franchisees, such as in-airport rental locations, and advantageous
listings with online travel websites such as Kayak.com and Expedia.com.
An opportunity for
expansion has arisen due to a conversion wave of car rental
franchises into corporately owned companies, such as with Hertz and
Dollar-Thrifty. This opportunity leaves a pool of entrepreneurs
interested in purchasing a franchise.
The Company plans to expand the U-Save brand further into
the US, along with other heavily travelled areas of the world, while continuing
to provide franchisees with quality corporate support in Marketing and