Welcome to The Keg Royalties Income Fund frequently asked questions. This section will provide you with quick answers to the questions our investors ask the most.
To view the fund's current distribution click here.
The Keg Royalties Income Fund pays unitholders a cash distribution each month. Unitholders who own units on the 21st of every month will receive their distribution payment on the last business day of that month.
The Fund paid its initial distribution on $0.09 per unit on July 31, 2002 to unitholders of record on July 21, 2002, for the period of May 31-June 30, 2002.
Specific tax treatment can vary from year to year. Click here to view taxability since inception.
Yes. The Keg Royalties Income Fund includes every Keg restaurant, both corporate and franchised in Canada and the United States. On January 1st of each year, any new restaurants that have opened on or before October 2nd of the prior year are rolled into the Fund. Currently there are 103 restaurants in the Royalty Pool.
I the event that a Keg restaurant is permanently closed during the year (including termination of a franchise agreement), KRL will continue to pay the royalty amount for that closed Keg restaurant ("Make-whole Payment") from the date of closure until those sales are replaced with gross sales from new Keg restaurants that are added to the Royalty Pool. The amount of the Make-whole Payment is based on the restaurant's gross sales when it was originally included in the Royalty Pool.
The Fund does not pay management fees. Keg Restaurants Ltd. provides accounting, bookkeeping and administrative services on behalf of The Keg Royalties Income Fund at no cost to the Fund.
KRL is a premier operator and franchisor of casual steakhouse restaurants and bars in Canada and, through its wholly owned subsidiaries in select markets in the United States. KRL will carry on the business of operating, franchising and growing the chain of restaurants and bars.
KRL currently owns units in a related entity of the Fund. These securities are exchangeable for Fund units and if exchanged would give KRL approximately a 22% interest in the Fund. The number of Fund units that KRL is entitled to receive upon exchange of these securities should increase as new restaurants are added to the royalty pool.
Units are traded on the Toronto Stock Exchange under the symbol KEG.UN.
A 10-minute delayed price and fund information chart can be viewed here. Unit prices are also quoted in most major Canadian newspapers in the “Income Trust” section under the TSX listings.
There are 11,353,500 publicly traded Fund units outstanding as of January 1, 2014.
To purchase units of The Keg Royalties Income Fund contact any brokerage firm or through your financial advisor.
Please direct any questions regarding The Keg Royalties Income Fund to: