A&W Revenue Royalties Income Fund Announces Board Changes
May 03, 2012 at 01:10 am IST
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A&W Revenue Royalties Income Fund at its annual general meeting held on May 1, 2012, announced that Mr. Carl Vanderspek, who had been a Trustee of the Fund since 2006, stepped down and Mr. Richard McKerracher was elected as a new Trustee of the Fund for a term expiring at the close of the next annual meeting. Mr. McKerracher, a Chartered Accountant, was formerly President of Sauder Industries Limited and brings almost 40 years of business experience to the Fund.
A&W Revenue Royalties Income Fund (the Fund) is a Canada-based company. The Fund is a limited purpose trust established to invest in A&W Trade Marks Inc. (Trade Marks), which through its interest in the A&W Trade Marks Limited Partnership (Partnership), owns the A&W trademarks used in the A&W quick service restaurant business in Canada. In return for licensing, A&W Food Services of Canada Inc. (A&W Food Services) to use its trademarks, Trade Marks receives royalties equal to 3% of the sales of A&W restaurants in the royalty pool. The total number of A&W restaurants in the royalty pool is 1,047. The Fund's capital management objectives are to have sufficient cash and cash equivalents to pay distributions to its unitholders, after satisfaction of its debt service and income tax obligations; provisions for general and administrative expenses; retention of reasonable working capital reserves, and amounts that may be paid by the Fund in connection with any cash redemptions of units.