Pizza Pizza Royalty Corp. (“PPRC”), formerly Pizza Pizza Royalty Income Fund, is a corporation established under the laws of Ontario and owns certain trademarks and trade names used by Pizza Pizza Limited (“Pizza Pizza”) in its restaurants.
PPRC, through its ownership of the Partnership, earns royalty income equal to 6% of the system sales of Pizza Pizza restaurants in the royalty pool and 9% of the Pizza 73 restaurants in the royalty pool, less the Partnership’s operating expenses, and PPL’s share of the Partnership income.
Pizza Pizza Limited´s interest in the earnings of the Partnership is through its ownership in Class B and Class D Partnership units. Each Class B and Class D Unit can be exchanged for that number of units equal to the Class B and Class D Exchange Multipliers as defined in the Licence and Royalty Agreement applicable at the date of the exchange.
