Protection of Franchise network during NSW/Vic July- Oct lockdowns.
This doesn't provide a direct benefit to RPG, (except for any company run outlets), but it does assist the franchisees in terms of surviving the lockdown and therefore remaining in the franchise network:
Conditional on 30% drop in sales during lockdown: Victoria grants: Either hardship fund: one off $20,000 or $5,600 per fortnight during lockdown period
NSW: $15,000 one off grant plus $1,500 or 40% of wage reimbursement.
In addition those franchisees that knew how to structure their financial affairs could potentially claim the $700 per week employee disaster payment for themselves as employees.
Therefore my hypothesis is that most of the franchisee network should come through the July-Oct lockdowns intack. However a drop in system sales will effect 1hFY22 RFG income.
This is important as my focus in on the long term profitability estimate for RFG, not the reported from for 1hFY22.
Its the long term profitability that will guide the share price.
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