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services BKK provided to the purchasing members were the
following: accounting and administrative services, advertising,
coordination and installation of Taco Bell menus, renovations,
remodeling and repairs, building and equipment maintenance,
insurance coverage, training, inspections, and contracting.
BKK’s costs, which were passed on to the purchasing members,
included payroll-related costs (including salaries, employment
taxes, and the cost of health benefits) and incidental costs
(including office supplies, telephone charges, and rent). The
payroll-related costs represented the vast majority of BKK's
costs in providing the management and administrative services to
the purchasing members. Approximately 85 percent of BKK’s
payroll-related costs was attributable to the owner-managers.
The remaining approximately 15 percent was attributable to
support staff.
The owner-managers were employed by BKK to provide services
to the purchasing members. They received salaries and certain
other fees from BKK. They did not receive any other compensation
for their services as officers or directors of the members of the
group. Messrs. M. Kentris and Baerwaldt were full-time employees
of BKK. Mr. G. Kentris, an attorney, who maintained an active
law practice, worked part-time for BKK. All three owner-
managers, however, received substantially identical salaries.
The owner-managers did not maintain time logs or written
documents recording the hours that they spent working on behalf
of any individual member of the group.
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Last modified: May 25, 2011