A and W Revenue Royalties Income Fund
A and W Revenue Royalties Income Fund
"300 - 171 West Esplanade North Vancouver, British Columbia V7M 3K9"
604.988.2141
Sector: Consumer
Description
A &W Revenue Royalties Income Fund is a Canadian income fund created to invest in A&W Trade Marks Inc.
The first A&W drive-in restaurant was launched in Winnipeg in 1956. By 1966, over 200 such stores were opened across Canada. In 1972 Unilever Canada Limited (UCL) acquired A&W Food Services, which operates independently from A&W operations in the US.
However, in 1995, following a management buy-out agreement of A &W business, the company’s team and few investors acquired A&W Food Services UCL. During the transaction, A&W Food Services had 162 hamburger QSRs under its portfolio.
In the 1980s, the food services company reportedly became the first hamburger restaurant operator to open food outlets in shopping centers. The investment trust was formed in February 2002 in British Columbia. The trust units trade on TSX under ‘AW.UN’ symbol.
A&W Food Services of Canada, a QSR chain owner and operator, gets licenses and rights to use the ‘A&W®’ logo from Trade Marks.
The company distributes and produces bottled and canned A&W Root Beer for sale to Canadian wholesaler customers. Presently A&W operates over 1,000 restaurants and claims to be the second-largest restaurant chain offering hamburgers in Canada.
The quick service restaurant chain operator pays 3 per cent as royalty from gross sales from its restaurants to the limited partnership in the royalty pool. The company claims that the Royalty Pool is created and adjusted each year to reflect future royalty streams from new restaurants and sales figures of closed A&W restaurants.
The royalties income fund claims that it does not directly operate the quick service restaurants but invests in trademarks.
A&W claims to provide 100 per cent plant-based protein food items, including its hamburgers, chicken products, A&W Root Beer, soft drinks, Russet thick-cut fries, Fair Trade and organic coffee, sweet potato fries, and breakfast items.
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