David,
According to your profiler trace, the pepper doesn't turn to fly specs until the appian.dbo.udf_A User Defined Function hits the fan... that's where your problem is and you should probably post the code for THAT. If you don't think so, tell me where in the script you submitted that dealer regions are found and the IsActive flag is interrogated... 
--Jeff Moden
RBAR is pronounced "ree-bar" and is a "Modenism" for Row-By-Agonizing-Row.
First step towards the paradigm shift of writing Set Based code:
________Stop thinking about what you want to do to a ROW... think, instead, of what you want to do to a COLUMN.
Change is inevitable... Change for the better is not.
Helpful Links:
How to post code problems
How to Post Performance Problems
Create a Tally Function (fnTally)