Business
Pizza Pizza Royalty Income Fund announces increase to Royalty Pool
Pizza Pizza Royalty Income Fund announces increase to Royalty Pool.
About this update from Pizza Pizza Royalty Corp.
[{"type":"text","content":"\n\n\n\n\nTORONTO, Jan. 9 /CNW/ - Pizza Pizza Royalty Income Fund (the \"Fund\") and\nPizza Pizza Limited announce that, effective January 1, 2006, the pool of\nPizza Pizza restaurants (the \"Royalty Pool\") for which royalties are paid to\nthe Fund by Pizza Pizza Limited will receive an estimated increase in net\nsystem sales of $1.4 million annually. The positive change is due to a net\nincrease of one restaurant following the opening of five locations from March\n14, 2005 to September 1, 2005 and the closing of four from March 14, 2005, to\nDecember 31, 2005. The adjustment increases the total number of Pizza Pizza\nrestaurants within the Royalty Pool to 501 at January 1, 2006.\nThis is the first adjustment to the Royalty Pool since the Fund, on July\n6, 2005, indirectly acquired the Pizza Pizza Rights and Marks (the \"PPL\nRights\") used by Pizza Pizza Limited (\"PPL\") in the Pizza Pizza restaurants.\nThe PPL Rights have been licensed to Pizza Pizza Limited for 99 years and in\nreturn the Fund receives a 6% royalty from system sales of the 501 restaurants\nin the Royalty Pool.\n\"During the fiscal year ended October 2, 2005, we opened 16 new\nrestaurants and extensively renovated or relocated more than 30, while\ncontinuing to increase same store sales growth by 5.7% for the twelve months,\"\nsaid Daniel Vukovich, Chief Operating Officer for Pizza Pizza. \"The 5.7%\ngrowth follows a 5.9% same store sales growth for the 2004, fiscal year.\"\nThe Pizza Pizza Royalty Income Fund is a limited purpose, open-ended\ntrust established under the laws of Ontario. A key attribute of the Fund is\nthat it is based on top-line revenue of the Royalty Pool restaurants and not\non the profitability of either Pizza Pizza Limited or the restaurants in the\nRoyalty Pool. The success of the Fund depends primarily on the ability of\nPizza Pizza to maintain and increase system sales of the Royalty Pool and to\nmeet its royalty obligations.\nPizza Pizza Limited, a privately-held Canadian corporation, is one of\nCanada's most successful players in the quick service restaurant industry.\nBacked by a proven track record for growth, a powerful brand and with more\nthan 500 restaurants - predominantly in Ontario - the company is among the\nmost promising in the foodservice industry. Founded in 1967, Pizza Pizza is\nguided by a mission to provide the \"...