This is a descriptive term that describes business income minus all “true” business expenses. Any benefit a franchisee receives from the business—either through pass-through expenses, retirement contributions, dividends, distributions, or salary—is considered part of Owner Benefit. Other terms include “Owners Discretionary Profit” or “Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) Plus Add-Backs.”

« Back to Glossary Index