- A&W Revenue Royalties Income Fund (TSX:AW.UN) and A&W Food Services of Canada have formed a development plan with Pret a Manger
- The plan is to expand the Pret a Manger brand across Canada after a successful two-year trial period first announced in June 2022
- After first being offered in trial pop-up formats in certain A&W locations the first stand-alone Pret location opened in Toronto in 2024
- Shares of A&W are up 1.05 per cent to C$28.90 as of 10:27 am ET
A&W Revenue Royalties Income Fund (TSX:AW.UN) and A&W Food Services of Canada have formed a development plan with Pret a Manger.
In a news release Monday, the company stated the plan is to expand the Pret a Manger brand across Canada after a successful two-year trial period first announced in June 2022.
After first being offered in trial pop-up formats in certain A&W locations the first stand-alone Pret location opened in Toronto in 2024.
Under the terms of the agreement, Pret a Manger locations will increase across Canada over an initial 10-year plan. Sales of Pret products within A&W restaurants will be subject to a 3 per cent royalty paid by Food Services to the Fund.
The development plan calls for A&W Food Services continuing to increase the number of physical locations offering Pret products across Canada over an initial 10-year development term.
Sales of Pret products within A&W restaurants in the Royalty Pool will be subject to the 3 per cent royalty paid by A&W Food Services to the Fund, which is a limited-purpose trust established to invest in A&W Trade Marks Limited Partnership.
Pret A Manger is a sandwich and organic coffee chain that first opened in London, England, in 1986. Pret operates more than 650 shops worldwide in markets such as the United Kingdom, Ireland, United States, Germany, Canada, Italy, Spain and more.
A&W Revenue Royalties Income Fund is a limited-purpose trust established to invest in A&W Trade Marks. Through its interest in the A&W Trade Marks Limited Partnership, it owns the A&W trademarks used in the A&W quick service restaurant business in Canada, which totals 1,047 restaurants.
Shares of A&W (TSX:AW.UN) are up 1.05 per cent to C$28.90 as of 10:27 am ET.
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