Page 52 - New Employee Onboarding

Finance & Accounting

Price Variance Analysis (PVA)

The Brand Programs PVA team compares contract prices to distribution center invoices to
ensure the correct prices are being charged to the restaurants. Any overcharges are submitted
to the distribution center for review. When an agreement is reached, the distribution center
issues a check to CSCS. CSCS then reimburses the franchisees.

Patronage

Pricing negotiated by CSCS for goods and equipment is available to all operators who purchase
them. Members receive patronage dividends based on their purchases for the year. Patronage
dividends are paid in two installments the next year – in March and in August. Product rebates,
freight rebates and sourcing fees less operating expenses equal the amount of dividends due.

Sourcing Fees

CSCS’s operations are funded by a separate sourcing fee, paid by all operators, added to the
following products:

Applebee’s
• Ground Chuck - $0.075/lb
• Chicken Chunks - $0.02/lb
• Chicken Breasts - $0.02/lb
• French Fries/Sweet Potato Fries - $0.0625/lb

IHOP
• All Dry Mixes - $0.07/lb
• Liquid Eggs - $0.0415/lb
• Hash Browns - $0.01/lb