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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-QSB



|[X]   | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 
|----- | ----------------------------------------------------------------------------------------
|      | FOR THE QUARTERLY PERIOD ENDED May 31, 2005                                             
|      |                                                                                         
|      | OR                                                                                      
|      |                                                                                         
|[   ] | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|      | For the transition period from to                                                       

COMMISSION FILE NUMBER 333-113509

FC FINANCIAL SERVICES INC.



|NEVADA                                                         | 98-040339                           
|-------------------------------------------------------------- | ------------------------------------
|(State of other jurisdiction of incorporation or organization) | (IRS Employer Identification Number)



FC FINANCIAL SERVICES INC.
110 Jardin Drive, Suite 13
Concord, Ontario
Canada L4K 2T7
(Address of principal executive offices)

(905) 761-1096
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes [X] No [   ]

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PART I. FINANCIAL INFORMATION

ITEM 1.   INTERIM FINANCIAL STATEMENTS

FC FINANCIAL SERVICES, INC.
(A Development Stage Company)



CONTENTS



|FINANCIAL STATEMENTS
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|FC FINANCIAL SERVICES, INC.                   
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|(A Development Stage Company)                 
|BALANCE SHEETS                                
|(Expressed in US dollars)                     
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|ASSETS                                        
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|Current Assets                                
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|Total Current Assets                          
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|TOTAL ASSETS                                  
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|LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
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|LIABILITIES                                   
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|Current Liabilities                           
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|Total Current Liabilities                     
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|TOTAL LIABILITIES                             
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|Stockholders' Equity (Deficit)                
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|Total Stockholders' Equity (Deficit)          
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|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    
|(DEFICIT)                                     
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SUBSEQUENT EVENTS (Note 5)

(The Accompanying Notes are an Integral Part of These Financial Statements)
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|FC FINANCIAL SERVICES, INC.  
|-----------------------------
|(A Development Stage Company)
|STATEMENTS OF OPERATIONS     
|(unaudited)                  
|(Expressed in US dollars)    
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|REVENUE                      
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|EXPENSES                     
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|Total expenses               
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|NET LOSS                     
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|NET LOSS PER SHARE           
|- Basic and Diluted          
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|Weighted Average             
|Number of Common             
|Shares Outstanding           
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(The Accompanying Notes are an Integral Part of These Financial Statements)
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|FC FINANCIAL SERVICES, INC.                
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|(A Development Stage Company)              
|STATEMENTS OF CASH FLOWS                   
|(unaudited)                                
|(Expressed in US dollars)                  
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|CASH FLOWS FROM OPERATING ACTIVITIES       
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|Net loss                                   
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|Net Cash Used In Operating Activities      
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|CASH FLOWS FROM FINANCING ACTIVITIES       
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|Net Cash Provided By Financing Activities  
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|NET INCREASE (DECREASE) IN CASH            
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|CASH, BEGINNING OF PERIOD                  
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|CASH, END OF PERIOD                        
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|Supplemental Information                   
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|Non-cash Investing and Financing Activities
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(The Accompanying Notes are an Integral Part of These Financial Statements)
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|1. | NATURE OF OPERATIONS AND CONTINUANCE OF BUSINESS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
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|   | FC Financial Services, Inc. (the "Company") was incorporated in the State of Nevada on November19, 2003 where it maintains a statutory registered agent's office. The Company's principal executive office is located in Ontario, Canada. The Company intends to initiate operations in Canada, and is not subject to any deadlines to obtain U.S. licenses in order to begin operations. The Company provides indirect financing of instalment contracts for automobile purchases and leases for borrowers unable to qualify for traditional loans and leases. The Company is a Development Stage Company as defined by Statement of Financial Accounting Standard ("SFAS") No. 7.                                                                                                                                                              
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|   | These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. As of May 31, 2005, the Company had not recognized any revenues and had accumulated losses of $64,574 since inception. The Company's ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and its ability to achieve and maintain profitable operations through the financing of automobile loans and leases. While the Company is expending its best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be available for operations.
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|   | The Company's SB-2 Registration Statement was declared effective by the United States Securities Commission ("SEC") on March 22, 2005. The Company issued 1,144,550 free trading shares under the SB-2, at a price of $0.10 per share, for total proceeds of $114,455 of which $11,060 was received before February 28, 2005 and the balance of $103,395 in March 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
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|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
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|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
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|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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|   | (g)                                                   
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|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)                                                                                                                                                                                                                                                                                                                                      
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|3. | RELATED PARTY TRANSACTIONS/BALANCES                                                                                                                                                                                                                                                                                                                                                         
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|4. | COMMON STOCK                                                                                                                                                                                                                                                                                                                                                                                
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|   | The Company's SB-2 Registration Statement was declared effective by the United States Securities Commission ("SEC") on February 23, 2005. On March 22, 2005 the Company issued 1,144,550 free trading shares under the SB-2, at a price of $0.10 per share, for total proceeds of $114,455 of which $11,060 was received before February 28, 2005 and the balance of $103,395 in March 2005.

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ITEM 2.   MANAGEMENT DISCUSSION AND ANALYSIS

This section of this report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this prospectus. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.

We are a start-up stage corporation and have not started operations or generated or realized any revenues from our business operations.

Our auditors have issued a going concern opinion. This means that our auditors believe there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills. This is because we have not generated any revenues and no revenues are anticipated until we begin writing contracts, acquiring vehicles and receiving payments from our customers.

On March 22, 2005 we completed our public offering and sold 1,144,500 shares of common stock and raised $114,455. We have raised enough money through our public offering to begin operations and stay in business for one year. If we are unable to attract enough non-prime customers or if our customers default in mass, we may quickly use up the proceeds and will need to find alternative sources, like a second public offering, a private placement of securities, or loans from our officers or others in order for us to maintain our operations. At the present time, we have not made any arrangements to raise additional cash, other than through this offering.

If we need additional cash and cannot raise it, we will either have to suspend operations until we do raise the cash, or cease operations entirely. We raised enough money to last about one year but with limited funds available to develop a growth strategy. To implement growth, we need non-prime borrowers to finance the acquisition of their motor vehicles through us. The more on-time paying borrowers, the larger the revenues and profits. Other than as described in this paragraph, we have no other financing plans.

Plan of Operation

We can satisfy our cash requirements during the next 12 months. We will not be conducting any product research or development. We do not expect to purchase or sell plant or significant equipment. Further we do not expect significant changes in the number of employees.

Our growth strategy calls for us to receive pre-screened non-prime borrowers from First Class Financial Services, Inc. Upon review and approval of the borrower, we will acquire the vehicle and lease it back to the borrower. We believe that we could finance the acquisition of 30 vehicles. The purchase price of the vehicle will be paid by us with a substantial part being financed by us through lending institutions. We anticipate receiving from 10 to 20 initial applications from First Class Financial Services Inc. As we receive payments from the borrowers, we intend to use the repayments to cover the cost of our overhead, service our loans with our lenders and use the balance of the funds for down payments on the acquisition of additional vehicles for additional borrowers. We believe our portfolios of loans will expand during the first twelve months.

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We intend to accomplish the foregoing through the following milestones during the next twelve months:



|1. | We are in the process of establishing our office and acquiring the equipment we need to begin operations. Establishing our office will be completed in August 2005. It will cost less than $10,000 to establish our office. We do not intend to hire employees. Our officers and directors will handle our administrative duties. A detailed breakdown of the cost of operating our office is set forth in the Use of Proceeds section of the prospectus.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
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|2. | We have proceeded with the acquisition of our software and begin promoting and advertising our services.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
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|3. | We intend to establish our website within approximately 30 days of the completion of setting up our office and we will begin to market our business. We will use the website to promote our services. Our website will not be a source of revenue. We believe that it will cost a minimum of $5,000 to develop our website and for our marketing campaign. We intend to market our financing program primarily to franchised dealers and used automobile dealers primarily by mailing fliers, through our website, and by personal contact by our officers and directors. Marketing is an ongoing matter that will continue during the life of our operations. We also believe that we should begin to see results from our marketing campaign within 30 days from its initiation.                                                                                                                                                                                                                                                                                                     
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|4. | We expect that we will begin to process installment contracts by the end of this year. Our initial customers will be referred to us from First Class Financial Services Inc., a company owned and controlled by our officers and directors. The process of reviewing installment contracts will be ongoing during the life of our operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
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|5. | Upon approval of a customer, we will acquire the vehicle and lease it back to the customer. We intend to use a portion of the proceeds of the offering for the down payment and finance the balance through a financial institution. We have no financial arrangements with First Class Financial Services Inc.'s bank at the present time and there is no assurance that any financial arrangements will ever be concluded with First Class Financial Services Inc.'s bank. If we are successful in concluding financial arrangements with First Class Financial Services Inc.'s bank, they will be comparable as those we could obtain from an unrelated third party. It will take approximately 1 day to acquire a vehicle and approximately 2 to 3 days to process an application and deliver possession of the vehicle to our borrower. The down payment for the vehicle will be between $500.00 and $2,500.00 depending on the vehicle. The process of acquiring motor vehicles will be ongoing during the life of our operations. Initially, we intend to acquire used vehicles.

In summary, we should be in full operation and receiving orders by December, 2005. We estimate that we will generate revenue by December 2005. Until our management information systems are operational, we will not finance or lease any vehicles.

If we cannot generate sufficient revenues to continue operations, we will suspend or cease operations. If we cease operations, we do not know what we will do and we do not have any plans to do anything else.



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Limited operating history; need for additional capital

There is no historical financial information about us upon which to base an evaluation of our performance. We are in the start-up stages of our operations and have not generated any revenues. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to a lack of customers. We are seeking equity financing to provide for the capital required to implement our operations.

We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in additional dilution to existing shareholders.

Results of operations

From Inception on November 19, 2003 to May 31, 2005

During this period we incorporated the company, hired the attorney and hired the auditor. We have prepared an internal business plan. We have reserved a domain name www.fcfinancialservicesinc.com. Our loss since inception is $64,574. We have recently started our proposed business operations.

Since inception, we sold 5,000,000 shares of common stock to officers and directors for $50 and 1,144,550 shares of common stock in our public offering for $114,455.

Liquidity and capital resources

As of the date of this report, we have yet to generate any revenues from our business operations.

We issued 5,000,000 shares of common stock through a Section 4(2) offering in November 2003. This was accounted for as a sale of common stock. We also issued 1,144,550 shares of common stock pursuant to Section 5 of the Securities Act of 1933 in our public offering. We raised $114,455 which will allow us to operate for one year.

At May 31, 2005 the Company's bank balance was $66,932.

ITEM 3.   CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Taras Chebountchak, our Chief Executive Officer and Chief Financial Officer has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15 and 15d-15 under the Securities Exchange Act of 1934, as amended (the Exchange Act )) as of the end of the period covered by this quarterly report (the Evaluation Date ). Based on such evaluation, he has concluded that, as of the Evaluation Date, our disclosure controls and procedures are effective in alerting us on a timely basis to material information required to be included in our reports filed or submitted under the Exchange Act.



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Changes in Internal Controls

There were no changes in our internal controls or, to our knowledge, in other factors that could affect the disclosure of controls and procedures, subsequent to the date that we carried out this evaluation.

PART II - OTHER INFORMATION

ITEM 2.   CHANGES IN SECURITIES AND USE OF PROCEEDS.

On February 23, 2005, our public offering was declared effective by the SEC (SEC file no. 333-113509). On March 22, 2005, we completed our public offering and sold 1,144,500 shares of common stock and raised $114,455. There was no underwriter involved in our public offering. The proceeds from the offering were partially used during the quarter ended May 31, 2005 to repay the loans from shareholders and officers and to cover the expenses incurred. The balance is available to cover the costs of starting the business and the losses that may be incurred in the start up period.

The following amounts were paid from the proceeds of the offering:



| | Accounting                   | $     | 21,951.20 |          
| | ---------------------------- | ----- | --------- | ---------
| | Legal                        |       | 20,198.69 |          
| | Transfer Agent               |       | 3,342.31  |          
| | Blue Sky Fees                |       | 200.00    |          
| | Website development          |       | 19.00     |          
| | Registered Agent             |       | 560.00    |          
| | Interest on Shareholder Loan |       | 1,199.11  |          
| | Travel                       |       | 557.93    |          
| |                              |       |          
| |                              | TOTAL | $         | 48,027.79

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K.

The following Exhibits are attached hereto:



|Exhibit No. | Document Description                                                                                                                                                                          
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|            |                                                                                                                                                                                               
|31.1        | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Rule 13a-15(e) and Rule 15d-15(e), promulgated under the Securities Exchange Act of 1934, as amended.
|           
|32.1        | Certification of Chief Executive Officer and Chief Financial Officer Pursuant To 18 U.S.C. Section 1350, as adopted pursuant to Section 302 Of The Sarbanes-Oxley Act of 2002.                





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SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on this 14th day of July, 2005



| | FC FINANCIAL SERVICES INC.
| | --------------------------
| | (Registrant)              
| |                           
| | BY:                       
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