News

Canada’s Pizza Pizza adds to royalty pool

February 3, 2011

Toronto-based Pizza Pizza Royalty Income Fund and Pizza Pizza Limited announced that effective Jan. 1, 2011, the pool of restaurants on which royalties are paid to the fund by PPL has been increased to include 24 new Pizza Pizza restaurants and seven new Pizza 73 restaurants.

Of the 24 new Pizza Pizza restaurants opened between Jan. 1 and Dec. 31, 2010, six are traditional restaurants and 18 are non-traditional locations. The seven Pizza 73 restaurants are non-traditional locations opened between Sept. 2, 2009 and Sept. 1, 2010.

With the addition of the new restaurants, royalties are now paid to the fund on 695 restaurants in the pool.

In exchange for adding new restaurants to the royalty pool, PPL will be compensated in equivalent units, using an agreed-upon formula, on account of the future royalties paid to the fund from the additional restaurants.