Frequently Asked Questions

What is the current distribution?

Monthly distributions are paid on the last business day of each month. Click here to view recent distributions. Growth in the Fund is achieved in two ways: First, and most importantly, by increasing the same store sales of the restaurants in the royalty pool, and secondly by adding new restaurants to the pool each year.

Are fund distributions taxable?

Distributions are taxed as non-eligible dividends. Click here for 2023 Tax Information.

Why is the distribution paid January 31, 2024 included in 2023 taxable income?

The income reported on the 2023 T3s provided to unitholders of record on December 31, 2023 includes the distribution of 16.0 cents per unit for the period December 1 to 31, 2023. As distributions are paid monthly in arrears, this distribution of December's income was paid on January 31, 2024.

When will distributions be further increased?

The ability to increase distributions depends on the same store sales growth of the restaurants in the royalty pool and management of the Fund's general and administrative expenses, as well as the accretion from the royalties of the net new restaurants added to the pool each January.

What are A&W's anticipated sales for the coming year?

We do not provide estimates of future sales. 2023 Gross Sales reported by A&W restaurants in the Royalty Pool(1) were $1,832 million. For 2024, on January 5, 2024, the number of A&W restaurants for which royalties are paid was increased by 19 new restaurants less 9 restaurants which permanently closed, bringing the total number of restaurants in the royalty pool to 1,047.

Does the Fund pay Food Services for services provided?

Trade Marks’ general and administrative expenses include the expenses of the Fund as the Fund has entered into an administration agreement with Trade Marks whereby Trade Marks, at its expense, provides or arranges for the provision of services required in the administration of the Fund. On April 8, 2022, Trade Marks and Food Services entered into an agreement for Food Services to provide administrative services to Trade Marks (the “Services Agreement”). Under the terms of the Services Agreement, Food Services is entitled to be paid an annual fee, on a quarterly basis, for the services provided in each fiscal year in an amount approved by the board of directors of Trade Marks that is based on a prescribed time and effort computation.

When will new restaurants be added to the royalty pool?

Once per year, the Fund (through Trade Marks and the Partnership) will purchase the royalty stream from new restaurants opened by A&W Food Services of Canada Inc. (Food Services) in the prior year, net of the royalty stream of any A&W restaurants that have closed. The Partnership will pay Food Services, in the form of securities that are exchangeable for units of the Fund, 92.5% of an amount that is based on the royalty stream from the net new restaurants and the yield on the units of the Fund. The formula is designed to be accretive to unitholders. In 2023 royalties were based on 1,037 restaurants in the royalty pool. On January 5, 2024, the number of A&W restaurants for which royalties are paid was increased by 19 new restaurants less 9 restaurants which permanently closed, bringing the total number of restaurants in the royalty pool to 1,047.

What is distributable cash generated and how is it calculated?

Distributable cash generated is a non-IFRS financial measure and is calculated as royalty income less cash expenses. Distributable cash generated can be reconciled to net cash flows generated from operating activities by adjusting for interest, current income taxes, financing fees paid and net changes in items of working capital. See the “Non-IFRS Measures” section of the Fund’s MD&A for the fourth quarter ended December 31, 2023, for further details on how Distributable cash generated is calculated and used to assess the Fund’s performance.

What is A&W Food Services of Canada Inc.'s ownership in the Fund?

Effective January 5, 2024, Food Services owns the equivalent of 29.2% of the units of the Fund on a fully diluted basis.

Why do the number of restaurant openings and closures vary between A&W Food Services of Canada Inc. and the Fund?

The number of restaurant openings and closings will vary between Food Services and the Fund, as the period for which they are calculated varies slightly.

Why is there a difference in the number of restaurants and sales in the royalty pool and the total number of restaurants and total sales reported by A&W Food Services of Canada Inc.?

The royalty pool is adjusted in January of each year to include the revenue stream from restaurants which opened in the 12-month period ending September of the prior year. For example, on January 5, 2024, the number of restaurants for which royalties were paid to the Fund was increased by 19 new restaurants which opened prior to September 2023, less 9 restaurants which permanently closed. Restaurants that opened after September 2023 will not be included in the royalty pool until January 2025. Therefore at any given time there are A&W restaurants which are not in the royalty pool.

How can I purchase units of A&W Revenue Royalties Income Fund?

Units are traded on the Toronto Stock Exchange under the symbol AW.UN. There are currently 14,585,673 units outstanding. To purchase units, contact any Canadian brokerage firm.

Does the Fund have a Dividend Reinvestment Program (DRIP) available to unitholders?

No, but your brokerage firm may offer a feature simillar to a DRIP which allows investors to rollover monthly cash distributions for additional Fund units.

Are share certificates issued for the units?

Share certificates are not issued for the units.

How can I contact the A&W Revenue Royalties Income Fund?

For more information about the A&W Revenue Royalties Income Fund, please contact:

Kelly Blankstein, CFO (CPA)
A&W Revenue Royalties Income Fund
#300 - 171 West Esplanade
North Vancouver, BC V7M 3K9
Email: investorrelations@aw.ca
Phone: (604) 988-2141


(1) "Gross Sales reported by A&W restaurants in the Royalty Pool” is a non-IFRS supplementary financial measure. See the “Non-IFRS Measures” section of the Fund’s MD&A for the fourth quarter ended December 31, 2023, for further details on how this measure is calculated and used to assess the Fund’s performance.

Want more detailed fund information?

Click on the following link to view the SEDAR Filings.

Franchise Info

Looking for A&W franchise information?

Click on the following link to view the A&W Franchise website.