On June 17, 2025, Diversified Royalty Corp. (DIV), a Canadian multi-royalty company, completed the acquisition of intellectual property rights (the “Cheba Hut Rights”) used by Cheba Hut Franchising, Inc., a U.S.-based chain of toasted sub sandwich restaurants. The rights include trademarks and other key IP used in its operations.

DIV paid US$36 million in cash (approximately CAD 49 million) for the Cheba Hut Rights. Immediately upon closing, DIV licensed these rights back to Cheba Hut for 50 years, securing a stable and growing royalty income stream. The deal includes an initial royalty payment of US$4 million annually (~CAD 5.5 million), automatically increasing each year by the greater of 3.5% or U.S. CPI + 1.5%, with no additional consideration required.

This marks DIV’s ninth royalty stream and its second in the U.S., reinforcing its business model of acquiring stable, top-line royalties from established, multi-location franchisors across North America.