20 Earnings information
20.1 Earnings information may be given in a separate document attached to the disclosure document.
20.2 Earnings information includes the following information:
(a) historical earnings data for:
(i) the franchised business; or
(ii) a franchise in the franchise system;
(b) if subparagraph (a)(ii) applies—any differences between the franchise in the franchise system and the franchised business;
(c) projected earnings for the franchised business and the assumptions on which those projections are based;
(d) any other information from which historical or future earnings information of the franchised business can be assessed.
20.3 If earnings information is not given—the following statement:
The franchisor does not give earnings information about a [insert type of franchise] franchise.
Earnings may vary between franchises.
The franchisor cannot estimate earnings for a particular franchise.
20.4 Earnings information that is a projection or forecast must include the following details:
(a) the facts and assumptions on which the projection or forecast is based;
(b) the extent of enquiries and research undertaken by the franchisor and any other compiler of the projection or forecast;
(c) the period to which the projection or forecast relates;
(d) an explanation of the choice of the period covered by the projection or forecast;
(e) whether the projection or forecast includes depreciation, salary for the franchisee and the cost of servicing loans;
(f) assumptions about interest and tax.