VAUGHAN, Ont. - Cara Operations Ltd. (CAO.TO) says it has signed a deal to acquire a majority stake in Original Joe's Franchise Group Inc., for $93 million.

The bulk of that amount, $90 million, will be used by Original Joe's to re-acquire its trademarks and royalty rights from Diversified Royalty Corp. (DIV.TO).

This will allow Original Joe's to retain about $12.6 million in annual royalty payments now paid to Diversified Royalty.

Original Joe's franchises and operates 99 restaurants in Canada and the U.S. under three banners -- Original Joe's Restaurant & Bar, State & Main Kitchen Bar and Elephant & Castle Pub and Restaurant. Together, they generate about $250 million in sales.

Cara Operations says with the acquisition of Original Joe's and its pending acquisition of the Quebec-based St-Hubert chain of restaurants, its total system sales will reach about $2.7 billion.

Cara also says it will have 1,219 restaurants under its name once it adds 117 from the St-Hubert acquisition and 99 from Original Joe's.