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Fun & Glory 15-Year Employee Profit-Sharing & Ownership Plan

1. Purpose

Fun & Glory will operate under an employee-centered profit-sharing model designed to reward long-term employees while creating a pathway for qualified employees to eventually become Fun & Glory Store owners.

The program has two primary goals:

  1. Allow employees to build meaningful long-term financial wealth through profit sharing.

  2. Give employees the opportunity to demonstrate that they have the ability, judgment, leadership, and work ethic necessary to successfully operate a Fun & Glory business of their own.

The first 15 years of participation will therefore serve as both a wealth-building period and an ownership-development period.

Completing 15 years does not automatically give an employee the right to own or operate a Fun & Glory Store.

Instead, the 15-year milestone makes the employee eligible to be considered for ownership.

If Fun & Glory determines that the employee is qualified to operate a store independently, the employee may be offered the opportunity to use their accumulated funds toward opening an approved Fun & Glory Store.

If the employee is not yet considered ready for independent ownership, the employee may be given the opportunity to remain employed by Fun & Glory, continue participating in the profit-sharing program, and continue growing their individual account.

The employee can continue developing until they:

  • Become qualified for independent Fun & Glory ownership;

  • Decide to retire;

  • Decide to leave Fun & Glory; or

  • Otherwise become eligible to receive their accumulated funds under the legal terms of the program.

2. Profit-Sharing Structure

Fun & Glory will calculate an Adjusted Net Profit Available for Distribution after authorized company expenses and allocations have been deducted.

Authorized deductions include:

  • Owner payroll and compensation

  • Company Growth Account contributions

  • Employee payroll and benefits

  • Insurance

  • Taxes

  • Rent and leases

  • Utilities

  • Inventory

  • Advertising and marketing

  • Equipment

  • Maintenance

  • Professional services

  • Technology

  • Transportation

  • Debt obligations

  • Banking and processing fees

  • Licensing and regulatory expenses

  • Other legitimate expenses necessary to operate Fun & Glory

After these expenses and authorized allocations have been deducted:

50% of Adjusted Net Profit Available for Distribution will be allocated to eligible employees.

50% will remain with the company and owners.

3. Owner Payroll and Company Growth Limits

The initial annual maximum Owner Payroll Limit will be:

$500,000 per year

The initial annual maximum Company Growth Account allocation will be:

$300,000 per year

These amounts are maximum allowable amounts and are not automatic annual deductions.

If actual owner payroll is $300,000, only $300,000 will be deducted.

If the company contributes $150,000 to its Growth Account, only $150,000 will be deducted.

The limits may be reasonably adjusted over time to account for:

  • Inflation

  • Increased insurance costs

  • Increased federal taxation

  • Increased state taxation

  • Increased local taxation

  • Increased payroll taxation

  • Other material government-mandated costs

Material adjustments will be documented and should be reviewed by the company’s accountant or CPA.

The adjustment provision will not be used simply to artificially reduce the Employee Profit-Sharing Pool.

4. Employee Ownership Accounts

Each eligible employee will have an individual Fun & Glory Employee Ownership Account or legally recognized plan balance.

The company will maintain records showing:

  • Employee name

  • Annual profit-sharing allocation

  • Date of allocation

  • Cumulative account balance

  • Vesting status

  • Investment or interest earnings, if applicable

  • Taxes or withholding, if applicable

  • Years of participation

  • Ownership-development status

  • Distributions or transfers

The employee’s account is intended to grow throughout their career with Fun & Glory.

PART I — THE FIRST 15 YEARS

5. The 15-Year Development Period

The first 15 years of participation will serve as the employee’s primary development, evaluation, and wealth-accumulation period.

Employees will have 15 years to demonstrate that they possess the qualities necessary to independently operate a successful Fun & Glory Store.

Fun & Glory will encourage employees interested in ownership to progressively develop skills in:

  • Customer service

  • Sales

  • Employee management

  • Hiring

  • Training

  • Scheduling

  • Inventory management

  • Financial management

  • Profit-and-loss management

  • Budgeting

  • Cost control

  • Marketing

  • Store operations

  • Conflict resolution

  • Leadership

  • Decision-making

  • Problem-solving

  • Compliance

  • Fun & Glory brand standards

The goal is to develop employees who understand the entire business rather than only the duties of their individual position.

6. Ownership Is Earned, Not Automatic

Completion of 15 years does not automatically guarantee ownership of a Fun & Glory Store.

The company and/or owner must determine that the employee is capable of successfully operating a business independently.

An employee seeking ownership should demonstrate:

  • Strong leadership

  • Financial responsibility

  • Reliable decision-making

  • Understanding of company finances

  • Ability to manage employees

  • Ability to hire and develop people

  • Ability to control expenses

  • Ability to manage inventory

  • Strong customer service

  • Integrity

  • Consistent performance

  • Knowledge of Fun & Glory operations

  • Ability to solve problems without constant supervision

  • Ability to protect the Fun & Glory brand

  • Ability to operate profitably

  • Compliance with company standards

  • Readiness to accept the responsibilities and risks associated with business ownership

Fun & Glory may establish additional written ownership standards as the company grows.

7. 15-Year Ownership Review

At or near the employee’s 15-year milestone, an employee interested in ownership may undergo a formal Fun & Glory Ownership Readiness Review.

The company and/or owner will evaluate the employee’s overall record and readiness.

The review may consider:

  • Performance history

  • Leadership history

  • Management experience

  • Financial knowledge

  • Disciplinary history

  • Attendance and reliability

  • Training completion

  • Store performance

  • Employee-development ability

  • Customer-service performance

  • Financial responsibility

  • Business judgment

  • Ability to work independently

  • Understanding of Fun & Glory systems and standards

The company may also require the employee to complete additional management training, financial education, business planning, or store-management experience before approval.

PART II — WHAT HAPPENS AFTER 15 YEARS

8. Path One — Approved for Ownership

If the company determines that the employee has demonstrated the ability to successfully operate a Fun & Glory business independently, the employee may be approved to pursue ownership.

The employee may then elect to apply some or all of their eligible accumulated account balance toward opening an approved Fun & Glory Store.

Potential uses may include:

  • Franchise or licensing costs

  • Store construction and buildout

  • Equipment

  • Inventory

  • Lease deposits

  • Property expenses

  • Working capital

  • Training

  • Marketing

  • Other approved startup costs

Ownership approval may also depend on available territories, suitable locations, financing, legal requirements, and the employee’s ability to satisfy the final Fun & Glory ownership or franchise agreement.

9. Path Two — Not Yet Ready for Ownership

If the employee reaches 15 years but the company or owner determines that the employee is not yet ready to independently operate a Fun & Glory Store, this does not necessarily end the employee’s participation in the program.

The employee may be offered the opportunity to:

Remain employed by Fun & Glory and continue developing toward ownership.

The employee’s existing accumulated account will remain subject to the program’s legal terms, and the employee may continue receiving future profit-sharing allocations while eligible.

There will not necessarily be a second fixed deadline for becoming ownership-ready.

An employee may continue working and developing beyond the initial 15-year period until they:

  1. Become qualified and approved for ownership;

  2. Decide to retire;

  3. Decide to leave the company; or

  4. Otherwise become entitled to distribution under the legal terms of the program.

This creates a continuing opportunity rather than treating the 15-year review as a pass-or-fail deadline.

10. Continued Account Growth After 15 Years

An eligible employee who remains with Fun & Glory after completing 15 years may continue participating in the Employee Profit-Sharing Program.

For example:

Year 15 → Ownership Review

If not yet approved:

Year 16 → Continue Employment + Continue Profit Sharing + Continue Development

Year 17 → Continue Employment + Continue Profit Sharing + Continue Development

Year 18 and Beyond → Continue Until Ownership, Retirement, or Departure

The employee’s account can therefore potentially continue growing beyond 15 years.

The 15-year mark represents an ownership eligibility milestone—not necessarily the end of profit-sharing participation.

11. Future Ownership Reviews

Employees who are not initially approved for ownership may be reconsidered later.

Fun & Glory may establish periodic ownership reviews for employees who continue to express an interest in operating their own location.

During the additional development period, the company should identify specific areas in which the employee needs improvement.

For example, an employee may need additional development in:

  • Financial management

  • Employee leadership

  • Inventory control

  • Scheduling

  • Cost management

  • Customer relations

  • Decision-making

  • Business planning

  • Store profitability

Once the employee demonstrates sufficient improvement, they may request or receive another ownership review.

12. Retirement

An employee who continues working beyond 15 years may eventually decide to retire without opening a Fun & Glory Store.

Upon retirement, the employee will be entitled to receive the vested amount available to them under the legally established program, subject to applicable:

  • Taxes

  • Withholding

  • Distribution rules

  • Benefit-plan requirements

  • Other legal obligations

The program is therefore intended to provide value even to employees who never become Fun & Glory owners.

13. Voluntary Departure After 15 Years

An employee who has completed the 15-year period but decides they no longer wish to remain with Fun & Glory may leave the company.

Upon departure, the employee will be entitled to the amount legally vested and distributable from their account under the governing plan documents.

The employee will not be required to open a Fun & Glory Store in order to receive money that they are legally entitled to receive.

14. Leaving Before 15 Years

The official plan documents will separately establish what happens when an employee leaves Fun & Glory before completing the initial 15-year period.

The program must address:

  • Voluntary resignation

  • Termination

  • Layoff

  • Retirement

  • Disability

  • Death

  • Business closure

  • Sale of the company

The company will establish a legally compliant vesting and distribution structure.

Fun & Glory will not assume that earned employee compensation can legally be forfeited merely because an employee leaves before 15 years.

PART III — FAIRNESS AND BUSINESS PROTECTION

15. Objective Ownership Standards

Although final approval to operate a Fun & Glory Store will remain with the company and/or owner, ownership decisions should be based on legitimate business considerations.

The company should establish written ownership-readiness standards and apply them consistently.

An employee should not be denied ownership for unlawful discriminatory or retaliatory reasons.

When an employee is not approved, the company should, where practical, explain the primary areas requiring additional development so the employee has a reasonable opportunity to improve.

The purpose of the ownership review is to determine whether the individual can successfully operate and protect a Fun & Glory business—not to prevent qualified employees from advancing.

16. Protection of Employee Accounts

A decision that an employee is not ready to operate a Fun & Glory Store will not, by itself, eliminate the employee’s accumulated account balance.

The ownership decision and the employee’s financial account are separate matters.

For example:

Employee reaches 15 years with $200,000 accumulated.

The company determines the employee needs additional management experience.

The employee remains employed.

Their existing $200,000 account remains credited to them according to the legal terms of the plan, and new eligible profit-sharing allocations may continue to be added.

If the employee later reaches $260,000 and becomes qualified for ownership, they may pursue a Fun & Glory Store using their eligible accumulated funds.

If they instead decide to retire or leave, their vested/distributable balance will be handled according to the governing plan documents.

PART IV — PROFIT CALCULATION

17. Adjusted Net Profit Available for Distribution

Employee profit sharing will be calculated from Adjusted Net Profit Available for Distribution, not gross revenue or gross profit.

The general calculation will be:

Gross Revenue

− Cost of Goods/Services

− Employee Payroll and Benefits

− Owner Payroll

− Company Growth Account Allocation

− Taxes

− Insurance

− Rent and Utilities

− Marketing

− Equipment and Maintenance

− Professional and Administrative Expenses

− Debt and Other Legitimate Business Expenses

= Adjusted Net Profit Available for Distribution

Then:

50% = Employee Profit-Sharing Pool

50% = Company/Owner Portion

18. Owner Payroll and Growth Account Adjustments

The initial limits will be:

Owner Payroll: Maximum $500,000 annually

Company Growth Account: Maximum $300,000 annually

These limits may be reasonably adjusted to account for:

  • Inflation

  • Increased insurance expenses

  • Increased federal taxation

  • Increased state taxation

  • Increased local taxation

  • Increased payroll taxation

  • Other material government-mandated costs

Adjustments must have legitimate financial justification and should be documented.

The limits may not be increased simply because Fun & Glory had a particularly profitable year.

PART V — LONG-TERM VISION

19. The Fun & Glory Career Path

The intended career path becomes:

Employee

↓

Profit-Sharing Participant

↓

Develop Skills and Build Wealth

↓

15-Year Ownership Eligibility

↓

Ownership Readiness Review

↓

If Ready:

Approved Ownership Candidate → Use Eligible Funds → Open Fun & Glory Store

If Not Yet Ready:

Remain Employee → Continue Training → Continue Profit Sharing → Continue Growing Account → Future Ownership Review

Eventually, the employee may choose:

Become a Fun & Glory Owner

OR

Retire and Receive Their Eligible Accumulated Funds

OR

Leave Fun & Glory and Receive Their Eligible Accumulated Funds

20. Fun & Glory Philosophy

Fun & Glory’s philosophy is:

Don’t just give people a job. Give them the time, training, opportunity, and financial foundation to become an owner.

Fifteen years gives an employee the opportunity to accomplish two things simultaneously:

Build wealth and build themselves into a business leader.

Not every employee will be ready to operate a company at exactly the 15-year mark.

For that reason, Fun & Glory will not treat 15 years as an automatic ownership award or an automatic end to the employee’s opportunity.

Employees who need additional development may remain with the company, continue learning, continue contributing, and continue growing their account.

When they demonstrate that they are capable of operating independently, they may become eligible to pursue ownership.

If they ultimately choose not to become an owner, they may continue their career until retirement or leave the company and receive the amount they are legally entitled to from their accumulated account.

The long-term vision is:

Build great employees.

Develop great leaders.

Help those leaders build wealth.

Give qualified leaders the opportunity to become owners.

Then allow those new owners to create the same opportunity for the next generation of Fun & Glory employees.

We grow you grow - It's a win! win!