Pizza Pizza Royalty Income Fund adds 45 restaurants to Royalty Pool

About this update from Pizza Pizza Royalty Corp.

[{"type":"text","content":"\n\n\n\nTORONTO, Jan. 24 /CNW/ - Pizza Pizza Royalty Income Fund (the "Fund") and\nPizza Pizza Limited ("PPL") today announced that effective January 1, 2008,\nthe pool of restaurants (the "Royalty Pool") on which royalties are paid to\nthe Fund by PPL will be increased to include the royalties from 36 new\nPizza Pizza restaurants and nine new Pizza 73 restaurants. The Royalty Pool\nwill decrease by eight non-traditional Pizza Pizza restaurants which were\nclosed during the year. Of the 36 new Pizza Pizza restaurants opened between\nJanuary 1, 2007 and December 31, 2007, 12 are traditional restaurants and\n24 are non-traditional locations. The nine Pizza 73 restaurants are comprised\nof eight traditional restaurants and one non-traditional location opened on or\nbefore September 1, 2007. With the addition of the 37 net, new restaurants,\nroyalties are now paid to the Fund on 609 restaurants in the Royalty Pool.\n\n\nThe Fund owns the Pizza Pizza and Pizza 73 trademarks and trade names\nused by PPL in its restaurants. In 2005, the Pizza Pizza trademarks and trade\nnames were licensed to PPL for 99 years, and in return PPL pays the Fund a\n6% royalty on the Pizza Pizza Royalty Pool system sales. In 2007, the Fund\nlicensed the Pizza 73 trademarks and trade names to PPL for 99 years, and in\nreturn PPL pays the Fund a 9% royalty on the Pizza 73 Royalty Pool system\nsales.\n\n\nAnnually, on January 1 (the "Adjustment Date"), the Royalty Pool is\nadjusted to include the forecasted system sales from new Pizza Pizza\nrestaurants opened on or before December 31 of the prior year, less system\nsales from any Pizza Pizza restaurants that have been permanently closed\nduring the year. Similarly, on the Adjustment Date, the Royalty Pool is\nadjusted to include the forecasted system sales from new Pizza 73 restaurants\nopened on or before September 1 of the prior year, less any Pizza 73\nrestaurants permanently closed during the calendar year.\n\n\nAt each annual Adjustment Date the number of equivalent, Class B and\nClass D Units held by PPL is adjusted in accordance with a formula which\ndetermines the Class B and Class D Exchange Multipliers for the upcoming year.\nThe formula and terms are defined in the Pizza Pizza Royalty Limited\nPartnership Agreement ("Partnership Agreement"). The for...

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