Johannesburg — RESTAURANT franchise group Spur had signed an agreement giving it all future franchise rights for the UK and Ireland and ending a legal dispute with the group that owned the master franchise rights there, it said yesterday.

Spur's UK subsidiary, Spur UK, bought an outlet in London from the group's previous master franchise holder, Trinity Leisure, for £175 000.

The transaction ended a year-long dispute with Trinity Leisure that had hampered growth in the UK and Ireland.

This will help the company speed up its UK expansion, although MD Pierre van Tonder said the company would continue to have a cautious approach. He said the agreement would enable Spur to have two distinct divisions, namely a wholly owned division and a franchise division, without having to go through Trinity .

After the opening of a Spur Steak & Grill in Belfast last month, the group's restaurant base in the UK increased to eight outlets.

Spur also intended funding another two or three restaurants through the South African business in the next 12-18 months. "After this, Spur Corporation UK will need to become self- sufficient and source its own financing to fund growth," Van Tonder said.

The group, which has three restaurant brands -- Spur Steak Ranches, Panarottis Pizza Pasta and John Dory's Fish & Grill -- said in February its international outlets contributed 27% to its revenue of R144,9m in the half-year to December. A year ago, this figure was at 8%.

SA accounted for 90% of its restaurant base and was still core to the group, he said.