Sir Royalty Income Fund T.SRV.UN

The Fund responds...

[BlueJay2020]

.... but doesn't really say much of note.

[flamingogold]

Actually, a little more clarity on Renegade which up to now has been almost absent in any PR: "Revenues generated by Renegade Chicken contribute to assisting SIR in maintaining liquidity, which will put SIR in a better position to catch up on deferred royalties and pay future royalties to the fund. The test phase is expected to conclude by the end of May. At that time, SIR is expected to

[Robsopinion]

But nothing would have been said had it not been for Janes press release 

[BlueJay2020]

Yeah, a bonus point to Lembit for getting either SIR or SRV to utter the forbidden R word! One would have thought that infiormation would have more properly come from SIR rather than the Fund.  It's not the Fund's job to defend the actions of SIR.

[flamingogold]

This was my thinking, why would SIR bury this info about Renegade, it negatively affects the value of the fund... unless that was their intention? The Fund should act in our best interest, but this is what Janes' is challenging... that maybe they have gotten a little too close to SIR. I would sincerely hope this head butting can be mutually resolved, but it's good to know we now have

[Fabozzi]

I'm a little confused about the comment from today's release that states Renegade Chicken "is not using any of the Fund's trademarks or being supported in any way by the Fund."  I understand the trademark part of that statement.  However, are they not using the trademark restaurant kitchens for their operations ?  Without the infrastructure in place supported

[flamingogold]

They are blowing smoke which is why Janes is taking a stand. Convenient that Renegade not only has an immediate kitchen, supply chain and employees all created by Jack's but also  can market to clientelle built on the back of Jack's and Scaddabush, profit from it and yet say we did it all on our own? I don't think so.

[BlueJay2020]

I'm not as bothered about the use of the kitchens and staff of Jack's - the Fund did not pay for these. All we own is the brand.  What is at issue is a) the use of our customer lists leading to b) lost sales and royalties because of new competition. May not amount to a hill of beans at this point, but still.  The communication from SIR Corp has been lacking. Interestingly, the

[Fabozzi]

I don't know.  I think you can make a good argument that the staff and kitchen would not be there if not for the restaurants for which Royalty owns the trademarks.  It's the Jack Astor's and Scaddabush names that allow for those staff and kitchen staff to be where they are....names the Fund paid for and own.  In my opinion, Renegade Chicken is now leveraging those assets

[flamingogold]

Absoutely, without a doubt! "Renegade Chicken is now leveraging [the Fund's] assets to make revenue potentially outside of the Fund"

[BlueJay2020]

Which assets,  exactly?

[Fabozzi]

The assets are the trademarks which have allowed for the number of standalone restaurants in prime locations to exist.  Do we think that a non-Jack Astor's or Scaddabush Sir restaurant could have got the Front/University lease for example? While Royalty doesn't have physical assets they have the asset which has allowed for those physical assets to exist in whole or in part.  Now

[jcw604]

The renegade chicken even without being included in the calculation of the royalty income, they will still get SIR out the jail of other lenders faster. Off course, I prefer them to be in the book of the royalty, and I think rightly so. I will be patient with the process to get there.

[Fabozzi]

Agree....I just believe it could set a very bad precedent for the Fund as well as take the operating focus off of the Fund's main trademarked restaurants.  

[BlueJay2020]

I think that's a tenuous argument which would be very expensive to test in court. A non-compete clause would be a better bet, if there was one.