Are new Pizza Pizza and Pizza 73 Restaurants added to the Royalty Pool?
On January 1 of each year (the “Adjustment Date”), an adjustment is made to the Royalty Pool to roll-in new Pizza Pizza restaurants that have been opened by the December 31 and for new Pizza 73 restaurants that were open on or prior to September 1 of the previous year prior to that Adjustment Date. At each adjustment, the Fund pays PPL, in securities exchangeable for Units of the Fund, 92.5% of the amount reflecting the value of any increase in the royalty at that time. The adjustment for new franchise revenues rolled into the Royalty Pool is designed to be accretive to current Unitholders. On January 1, 2009 there were 637 restaurants in the Fund’s Royalty Pool, comprised of 568 Pizza Pizza restaurants and 69 Pizza 73 restaurants.