Document ID: chunk:federal_register_of_legislation:F2024L01605:clause:1_20
Version: federal_register_of_legislation:F2024L01605
Segment Type: clause
Provision Reference: sch 1 cl 20
Character Range: 168276–170612

20  Earnings information
 (1) If the franchisor proposes to give earnings information, the franchisor must give it in the disclosure document or in a separate document attached to the disclosure document.
 (1A) If the franchisor gives earnings information to a prospective franchisee or a franchisee before giving the prospective franchisee or franchisee a copy of the disclosure document relating to the franchise, the franchisor must also give the prospective franchisee or franchisee earnings information in the disclosure document or an attachment to it.
 (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.
 (2A) If earnings information is given by the franchisor in the disclosure document or an attachment to it—the following statement:
  To the best of the franchisor's knowledge, the earnings information given is accurate (other than particular earnings information specified in the document as earnings information that the franchisor knows is not accurate).
 (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.
 (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.