BOSTON PIZZA ROYALTIES INCOME FUND ANNUAL INFORMATION FORM For the year ended December 31, 2020 February 9, 2021 TABLE OF CONTENTS Page GLOSSARY ................................................................................................................................................................... 1 INTERPRETATION ...................................................................................................................................................... 16 OVERVIEW .................................................................................................................................................................. 16 Royalty Income ........................................................................................................................................................ 17 Distribution Income .................................................................................................................................................. 17 CORPORATE STRUCTURE ....................................................................................................................................... 17 Boston Pizza Royalties Income Fund ...................................................................................................................... 17 Boston Pizza Holdings Trust .................................................................................................................................... 17 Boston Pizza Holdings GP Inc. ................................................................................................................................ 17 Boston Pizza Holdings Limited Partnership ............................................................................................................. 18 Boston Pizza GP Inc. ............................................................................................................................................... 18 Boston Pizza Royalties Limited Partnership ............................................................................................................ 18 Boston Pizza International Inc. ................................................................................................................................ 18 Boston Pizza Canada Limited Partnership .............................................................................................................. 19 Boston Pizza Canada Holdings Inc. ......................................................................................................................... 19 Boston Pizza Canada Holdings Partnership ............................................................................................................ 19 Intercorporate Relationships .................................................................................................................................... 19 GENERAL DEVELOPMENT OF THE BUSINESS ...................................................................................................... 20 Three Year History ................................................................................................................................................... 20 Recent Developments ............................................................................................................................................. 22 Credit Facilities .................................................................................................................................................... 22 BPI Credit Facilities ............................................................................................................................................. 22 January 1, 2021 Roll-in of New Boston Pizza Restaurants ................................................................................. 23 2021 Audit of 2020 Roll-in of New Boston Pizza Restaurants ............................................................................. 24 COVID-19 Pandemic ............................................................................................................................................... 24 Early Effects of COVID-19 Pandemic on Boston Pizza ....................................................................................... 24 Comprehensive COVID-19 Recovery Plan and Refinancing of the Fund’s and BPI’s Credit Facilities ............... 25 Effects of COVID-19 Pandemic on Boston Pizza during the Second Half of 2020 .............................................. 27 2015 Transaction ..................................................................................................................................................... 27 BPI’s 2017 Reorganization ...................................................................................................................................... 28 Normal Course Issuer Bids ...................................................................................................................................... 29 2018/2019 NCIB .................................................................................................................................................. 29 2020/2021 NCIB .................................................................................................................................................. 29 DESCRIPTION OF THE BUSINESS ........................................................................................................................... 30 Boston Pizza Royalties Income Fund ...................................................................................................................... 30 Boston Pizza Royalties Limited Partnership ............................................................................................................ 30 Boston Pizza International Inc. and Boston Pizza Canada Limited Partnership ...................................................... 30 Industry Overview ................................................................................................................................................ 30 Trends in the Foodservice Industry ..................................................................................................................... 32 Overview of the Business of BPI and BP Canada LP .......................................................................................... 32 The Boston Pizza Concept .................................................................................................................................. 33 BPI’s Director and Senior Officers ....................................................................................................................... 33 Franchise Support Systems ................................................................................................................................ 35 Competitive Strengths ......................................................................................................................................... 37 Growth Strategy .................................................................................................................................................. 38 Government Regulation....................................................................................................................................... 41 Competition ......................................................................................................................................................... 42 Seasonality .......................................................................................................................................................... 42 BPI Credit Facilities, BCAP Loan, BDC Facilities and F&J Credit Facility ............................................................... 42 BPI Credit Facilities ............................................................................................................................................. 42 BCAP Loan .......................................................................................................................................................... 42 BDC Facilities ...................................................................................................................................................... 43 - i - F&J Credit Facility ............................................................................................................................................... 43 Security and Covenants ...................................................................................................................................... 43 LICENSE AND ROYALTY ........................................................................................................................................... 45 The License ............................................................................................................................................................. 45 The Royalty.............................................................................................................................................................. 45 Operating Covenants of BPI in the License and Royalty Agreement ....................................................................... 45 Adjustments of the Royalty ...................................................................................................................................... 46 Guarantee and Security for the Royalty ..................................................................................................................