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Boston Pizza Royalties Income Fund Adds 18 Restaurants to Royalty Pool

January 04, 2005

For Immediate Release                                                                           Toronto Stock Exchange: BPF.UN


VANCOUVER, BC, JANUARY 4, 2005  - Boston Pizza Royalties Income Fund (the “Fund”) (TSX: BPF.UN) announced today that effective January 1, 2005, the number of Boston Pizza restaurants included in the Fund’s royalty pool (the “Royalty Pool”) has been increased to include the royalties from 18 new restaurants opened across Canada between November 2, 2003 and November 1, 2004 (the “Period”).  With the addition of these 18 restaurants, royalties are now payable to the Fund from 195 Boston Pizza restaurants.

The Fund indirectly owns the Boston Pizza trade marks and trade names used by Boston Pizza International Inc. (“BPI”) in its Boston Pizza restaurants in Canada.  In 2002 the Fund licensed these trade marks to BPI for 99 years and in return BPI pays the Fund a top line royalty of 4% of franchise revenues of Royalty Pool restaurants.  Annually, the Royalty Pool of Boston Pizza restaurants is increased to include the new Boston Pizza restaurants that have opened in the prior year.  The increase is adjusted to reflect any locations that may have permanently closed during the year.  During the year no Boston Pizza restaurants were closed.

“I am very pleased that our team was able to exceed our expected store opening target of 15 restaurants with the opening of these 18 new restaurants.  Our employees and franchisees should be commended for all the hard work they have done throughout the year to get these restaurants opened.” said Mike Cordoba, Chief Executive Officer for BPI and the Fund.  Cordoba further went on to say, “In addition, 2004 was another year that we did not close any restaurants, which really speaks to the strength and stability of the Boston Pizza brand.”

In return for adding these 18 new restaurants to the Royalty Pool, BPI has received 1,033,746 additional unit entitlements (the “Additional Unit Entitlements”).  These Additional Unit Entitlements are the equivalent of Fund Units and represent 8.6% of the Fund Units on a fully diluted basis. BPI will also receive a proportionate increase in monthly distributions based on the 18 new restaurants added to the Royalty Pool.  The calculation for the number of Additional Unit Entitlements received by BPI is designed to be accretive to existing Fund Unitholders as the additional royalty revenues from the new restaurants are acquired at a 7.5% discount.  The estimated royalty revenue the Fund will receive in 2005 from these additional 18 restaurants is $1,555,508.  The royalty revenue for the purposes of calculating the Additional Unit Entitlements, therefore, is $1,438,845 or 92.5%.  Once the actual performance of these 18 restaurants for 2005 is known, the number of Additional Unit Entitlements will be adjusted in 2006 to reflect the actual royalty revenue received by the Fund in 2005.  The Additional Unit Entitlements represent 80% of the total number of Fund Units that BPI will have the right to receive in the event that the actual royalty revenue from these additional restaurants is equal to the estimated royalty revenue.

Including the Additional Unit Entitlements described above, BPI has the right to exchange its securities for 3,215,914 Fund Units, representing 26.9% of the Fund Units on a fully diluted basis. BPI has agreed to maintain at least a 20% ownership interest, direct or indirect, in the Fund until such time as there are 275 restaurants in the Royalty Pool.

BPI is located at 5500 Parkwood Way, Richmond, B.C. V6V 2M4.

The trustees of the Fund have approved the contents of this news release.

Robert Groom
Director, Investor Relations
Tel: 604-270-1108


Boston Pizza Royalties Income Fund
Jordan Holm - Vice President of Investor Relations
Tel: 604-303-6083

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