The Keg Royalties Income Fund ("The Fund") is an unincorporated open-ended limited purpose trust. It is listed on the Toronto Stock Exchange (TSX) under the symbol KEG.UN. The Fund is the owner of The Keg rights, which are the trade names, trade marks, operating procedures and other intellectual property used in the operation of The Keg restaurants.
The Fund licenses Keg Restaurants Ltd. ("KRL") to use these rights and, in return, receives a 4% royalty of system sales from Keg restaurants in the Royalty Pool, which currently has 102 restaurants. The Fund's income is based on the system sales of these restaurants and not bottom line profits, therefore, it is not subject to the variability of expenses associated with an operating business.