Mr. Mikes Restaurants Corp. completes C$43.2M sale of its trademarks and other IP rights to Diversified Royalty Corp.

Date Closed

May 21, 2019

Lead Office



43.20 Million CAD

On May 21, 2019, Mr. Mikes Restaurants Corporation ("Mr. Mikes") completed its $43.2 million sale of its trademarks and certain other intellectual property rights to Diversified Royalty Corporation ("Diversified"). The purchase price includes a deferred amount of $4.95 million. Diversified licensed the Mr. Mikes Marks back to Mr. Mikes for 99 years in return for an initial $3.9 million per annum royalty payment.

The transaction was important to Diversified because it increased the company’s market capitalization and gave it a more diverse portfolio of royalty streams.

Mr. Mikes is a leading Canadian restaurant franchise with 38 locations across Canada.

Diversified is a multi-royalty corporation focused on acquiring top-line royalties from well-managed multi-location businesses and franchisors across North America.

McCarthy Tétrault LLP advised Mr. Mikes with a team led by Robin Mahood that included Vincent Yip, Leah Whitworth, Bosa Kosoric and Michael Alty.