VANCOUVER - A&W Revenue Royalties Income Fund says it has reached an agreement in principle with the U.K.-based Pret A Manger chain to bring the sandwich and coffee chain to Canada.

During the two-year trial phase, A&W's food services operation plans to add Pret items to its restaurants in select markets in Canada.

If the pilot is successful, A&W would receive the exclusive franchise rights to expand the Pret brand across the country.

Details of the exclusive rights remain subject to negotiation and A&W board approval.

The A&W fund receives royalties equal to three per cent of gross sales at 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, along with organic coffee. There are more than 450 shops in the U.K., U.S. and several other countries.