A&W Revenue Royalties Income Fund

What A&W Revenue Royalties Income Fund does

A&W Revenue Royalties Income Fund was a Canadian publicly traded income trust, domiciled in Canada and headquartered in North Vancouver, that earned royalty income from the A&W quick-service restaurant franchise system. The fund's economic function was passive: it held the contractual right to receive royalty payments — calculated as a percentage of system sales — from A&W franchise operators across Canada, and it distributed substantially all of that royalty income to its unitholders via quarterly cash dividends (most recently $0.480 per share). The trust did not operate restaurants, employ restaurant staff, or build any proprietary technology; its value derived entirely from the A&W brand intellectual property and the contractual royalty stream attached to the franchise network. The underlying franchise system generated $1.92 billion in fiscal 2025 system sales across more than 1,000 A&W locations in Canada, with 26 new restaurants opened in the year and positive same-store sales in all four quarters.

In October 2024, A&W Food Services of Canada Inc. — which already held a partial stake and was the principal royalty payor — acquired the remaining fund units it did not already own, taking the trust private. Following this transaction, the royalty obligation ceased, the fund was wound up or merged into A&W Food Services, and it ceased to exist as a standalone reporting entity. The fiscal 2025 results reflect this consolidation: income before income taxes rose 53% (driven primarily by the elimination of the royalty expense) and Adjusted EBITDA rose 7% to $100.0 million, while organic system sales grew 2.8%. The fund's former web domain (awincomefund.ca) now hosts unrelated third-party casino content, consistent with the entity's discontinued status.

Name

A&W Revenue Royalties Income Fund

Legal name

A&W Revenue Royalties Income Fund

Website

https://awincomefund.ca

Company type

Private

Founded year

1956

Operating status

Acquired

Headcount range

51–100 employees

Short description

A&W Revenue Royalties Income Fund was a Canadian publicly traded income trust that collected royalties from A&W quick-service franchise restaurants in Canada and distributed them to unitholders. Following A&W Food Services' October 2024 acquisition of the remaining units, the trust was taken private and ceased to exist as a standalone entity.

Ownership category

akta.pro rank

Product category

Restaurant Royalty Income Trust

NAICS

Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) (533110)

SIC

Patent Owners & Lessors (6794)

akta.pro primary industry

Private Credit — Royalty & IP-Backed Finance (FSAHAJAM)

Keywords

• Restaurant royalties
• Franchise royalty income
• Income trust
• Quick-service restaurants
• Brand licensing

Headquarters

HQ city

North Vancouver

HQ country

Canada

HQ region

North America

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Others

Revenue model

1. Royalty Income: The fund generates revenue through royalty payments from A&W franchise operators. Royalties are calculated as a percentage of system sales generated by A&W restaurants. Following the October 2024 transaction where A&W acquired the remaining units of the fund it did not already own, the royalty expense ceased, significantly improving income before income taxes.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels1 record

Core offering

A&W Revenue Royalties Income Fund was a Canadian publicly traded income trust that owned the intellectual property of the A&W quick-service restaurant brand in Canada and collected royalty income from A&W franchise operators based on their system sales. The fund distributed royalty proceeds to its unitholders via quarterly cash dividends. Following the October 2024 transaction in which A&W Food Services of Canada Inc. acquired the remaining units it did not already own, the fund ceased to exist as a separate public entity.

Product overview

A&W Revenue Royalties Income Fund was a publicly traded income trust that collected royalties from the A&W fast-food restaurant chain in Canada. Following an October 2024 transaction, A&W Food Services of Canada Inc. acquired the remaining units of the fund it did not already own, effectively bringing the royalty collection structure in-house. The fund's primary business model involved earning income based on system sales from A&W restaurants across Canada.

Differentiator

Problem solved

Functional benefit

Products and services

• A&W Brand Royalty Stream

Quantifiable outcome

• 53% increase in income before income taxes year-over-year
• +2 more outcomes

Segments1 record

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

One partnership is on record.

• A&W Food Services of Canada Inc.coreStrategic or Co-development Partner · 1 October 2024In October 2024, A&W Food Services of Canada Inc. acquired the remaining units of A&W Revenue Royalties Income Fund it did not already own. This transaction resulted in the cessation of royalty expense, driving a 53% increase in income before income taxes. The acquisition consolidated full ownership of the A&W brand royalty stream under A&W Food Services.

Scale indicators6 records

Recent moves4 records

Expansion highlights2 records

Direct peers

• Boston Pizza Royalties Income Fund: A Canadian income trust that collects royalties from Boston Pizza franchisees based on system sales. Structurally and operationally almost identical to A&W Revenue Royalties Income Fund, making it the most directly comparable peer.
• Pizza Pizza Royalty Corp: A Canadian royalty corporation that earns royalties from Pizza Pizza and Pizza 73 franchisees. Same royalty-trust business model applied to the Canadian QSR market, making it a structurally comparable peer.
• MTY Food Group: A Canadian franchisor and operator of multiple QSR and casual dining brands. Comparable due to its franchise-royalty-driven revenue model and Canadian market exposure.

Broad incumbents

• A&W Food Services of Canada Inc. The parent company that acquired A&W Revenue Royalties Income Fund in October 2024. It is the underlying operating company behind the A&W franchise network and now captures the royalty stream that the fund historically distributed.
• Restaurant Brands International: A global QSR franchisor (Tim Hortons, Burger King, Popeyes, Firehouse Subs). Operates a heavily franchised, royalty-based business model and is the largest QSR peer in Canada via Tim Hortons.
• Yum! Brands: A global QSR parent (KFC, Pizza Hut, Taco Bell, Habit Burger) with an asset-light, royalty-driven franchise model. Comparable business model in a global context.
• McDonald's Corporation: The largest global QSR franchisor and the original architect of the modern franchise royalty model. Highly relevant for benchmarking royalty-driven QSR economics.
• Inspire Brands: A multi-brand QSR franchise platform (Arby's, Buffalo Wild Wings, Sonic, Dunkin', Jimmy John's). Comparable as a large, franchise-royalty-driven QSR consolidator.

Regional players

• Imvescor Restaurant Group: A Canadian restaurant operator and franchisor (Pizza Delight, Scores, Bâton Rouge). Comparable in Canadian restaurant franchising footprint and royalty-oriented economics.
• Recipe Unlimited: A major Canadian full-service and QSR franchisor (Swiss Chalet, Harvey's, etc.). Comparable in Canadian restaurant franchise royalty structure and consumer-facing brand portfolio.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat2 records

Key risks5 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about A&W Revenue Royalties Income Fund