Yes originally we were trying to calculate it as a percentage of receipts, but that kind of defeats the purpose of the scheme. We don't really want to "rip him off" per se, but he wants a part of the action and we want him to have an incentive to reduce costs and waste to the bare minimum to increase profit and, therefore, his pay. Sounds good in theory, but as you pointed out, there won't be much profit to go around. The way we are structuring the company is the three owners (myself included) will earn a small salary and take no profits until the debtors are repaid (meaning all profits go toward repayment), at which point we will start getting a hefty portion of the profits while the rest is divided proportionally between the investors. This poses the issue that, as you pointed out, the chef will not see any actual portion of real "profits" until everyone is repaid, which we are projecting will happen in about two years time. So in order to do this and have him see a benefit, we will have to take a portion of the payback money and funnel it to the chef, which in turn will elongate the payback period (and puts off my payday). It's all very confusing and I can't see the correct solution....
