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Priszm Income Fund has reached a deal with Yum! Restaurants International to renew and extend Priszm’s franchise contracts covering KFC, Taco Bell and Pizza Hut restaurants across Canada.
The company said Thursday that the new agreements “are the first in a series that will extend Priszm’s franchise contracts and upgrade its system.”
“Priszm currently has 120 restaurants that meet Yum’s current brand and image standards and today the company has come to terms on an additional 75 restaurants,” it said in a news release.
Priszm will close 16 underperforming stores before the end of 2010.
Of the 120 restaurants that currently meet the franchisor’s standards, the renewal agreements will enable Priszm to extend its right to use the KFC, Taco Bell or Pizza Hut trademarks for an additional 10-year term on 69 of those restaurants until 2019.
By the end of 2010, Priszm will have more than 150 restaurants with long-term franchise agreements in place and 195 restaurants that meet the franchisor’s current brand and image standards.
Priszm Income Fund holds approximately a 60% interest in Priszm Limited Partnership, which owns and operates more than 400 quick-service restaurants in seven provinces across Canada.
