Evaluation of Subsequent Events

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

NOTE 17 - Evaluation of Subsequent Events

Subsequent to December 31, 2016, the Company:

a)	Is out of compliance with certain debt covenants.
b)	Increased the number of shares of its common stock authorized for issuance to 300,000,000. Following this increase, the Company designated 1,000,000 of the authorized shares of its common stock as Series A Preferred Stock. The Preferred Stock will have voting rights equal to 299 shares of common stock, per share of Preferred.
c)	Issued 72,000,000 common shares of the Company to its CEO pursuant to the Company's employee stock incentive plan at a deemed cost of $0.001 per share.
d)	Entered into a Services Agreement with a consultant to provide management consulting services for a period of 180 days in exchange for a fee of $50,000 payable in 1,577,287 common shares of the Company. Pursuant to the Services Agreement, the consultant will subscribe for the shares for gross proceeds of $1,577.
e)	Entered into a Services Agreement with a second consultant to provide management consulting services for a period of 180 days in exchange for a fee of $50,000 payable in 1,577,287 common shares of the Company. Pursuant to the Services Agreement, the consultant will subscribe for the shares for gross proceeds of $1,577.
f)	Entered into an agreement with another company pursuant to which to other company assumed accounts payable of the Company in the aggregate amount of $183,443 in exchange for 35,000,000 common shares of the Company. As at the filing date, the Company has issued 10,400,000 common shares.
g)	Issued 37,640,800 common shares of the Company pursuant to the conversion of a convertible promissory note disclosed in note 8(a).
h)	Issued 24,503,724 common shares of the Company pursuant to the conversion of a convertible promissory note disclosed in note 8(b).
i)	Completed a corporate reorganization ( the "Reorganization") in accordance with Section 251(g) of the Delaware General Corporation Law, pursuant to which the Company became a wholly-owned subsidiary of a newly formed entity which became the successor of the public company (the "Successor Issuer"). In connection with the Reorganization, the Company redomiciled into Delaware and changed its name to Franchise Transition Inc., and the Successor Issuer took the name Franchise Holdings International, Inc. As one result, the assets and liabilities of the Company, remain the assets and liabilities of such entity. Pursuant to the Reorganization, the outstanding shares of the Company were exchanged for shares of the Successor Issuer on a one-for-one basis.
j)	On September 15th, 2017 the company amended its note issued in connection with its Equity Purchase Agreement. The amendment was to settle the $65,000 note in exchange for 3,200,000 shares of the companies common stock. The shares will be issued to the note holder at a later date.
The Company has evaluated subsequent events through September 18, 2017 which is the date the financial statements were available to be issued.