When will new restaurants be added to the royalty pool?
Once per year, the Fund (through Trade Marks and the Partnership) will purchase the royalty stream from new restaurants opened by A&W Food Services of Canada Inc. (Food Services) in the prior year, net of the royalty stream of any A&W restaurants that have closed. The Partnership will pay Food Services, in the form of securities that are exchangeable for units of the Fund, 92.5% of an amount that is based on the royalty stream from the net new restaurants and the yield on the units of the Fund. The formula is designed to be accretive to unitholders. In 2009 royalties were based on 685 restaurants in the royalty pool. On January 5, 2010, the number of A&W restaurants for which royalties are paid was increased by 23 new restaurants less 8 restaurants which permanently closed during 2009, bringing the total number of restaurants in the royalty pool to 700.
