People walk past a branch of a Pret A Manger in London on Tuesday, May 29, 2018. A&W Revenue Royalties Income Fund has announced that it has reached a tentative agreement with UK chain Pret A Manger for the rights of the main franchisor in Canada . THE CANADIAN PRESS / AP-Matt Dunham
A&W Revenue Royalties Income Fund said it has reached an agreement in principle with UK chain Pret A Manger to bring the sandwich and coffee chain to Canada.
During the two-year trial phase, A&W Foodservice Operation plans to add Pret items to its restaurants in select markets across Canada.
If the pilot project is successful, A&W would receive the exclusive franchise rights to expand the Pret brand across the country.
Details of exclusive rights are subject to negotiation and approval by the A&W Board.
The A&W fund receives royalties equal to three percent of the gross sales of the 994 A&W restaurants in the royalty pool. The royalty would also apply to Pret products sold in restaurants.
Pret A Manger, which opened in London, offers sandwiches, salads and wraps, as well as organic coffee. There are over 450 stores in the UK, US and several other countries.