| Dials | The payment: each month the lower of 8% of takings and 30% of verified profit, but never less than $600 or more than $2,200. The protected income: $1,500 a month, tested against the lower of the last three months' and the last twelve months' profit. The write-off: any balance still owed after ten years is cancelled. The royalty starts only when the mortgage is paid off, and runs for ten years at most, with a buy-out at any time at a published multiple (E.4, E.5; E.1.4). |
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| Turning the protected income | At $1,000 a month it barely helps: 14% of successors quit who would not have. At $1,500 the extra quitting almost vanishes (0.4%). At $2,000 it is gone, but 8% of mortgages are still unpaid after ten years, and the retiring hawker recovers 78% of the goodwill on average, against 85% at $1,500 (E.1.4). |
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| What breaks first | The quitting point. If cooks give up at $1,500 rather than $1,000, a $1,500 protection adds nothing (20% of successors still quit who would not have). The protected income must sit above the pay at which a cook walks away, so the escrow should review it each year against what successors report (E.1.4). |
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| Safeguards that do not move | Opt-in only; no cold approaches; a 21-day cooling-off period; independent legal counsel; written family notification; an independent ombudsman, appointed by the board and reporting publicly each year; an annual external audit of every Fellowship and mortgage (the Plan, §4.6). |
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| Fallback | The first-loss guarantee covers up to 24 monthly payments (E.4); its reserve is sized in E.1.5. The grant track carries dishes the market cannot (the Plan, §4.5). |
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