Why franchisor projections mislead, without lying
A franchisor's projected turnover range is usually drawn from their existing network, which sounds reassuring until you consider what that range is actually made of. It typically includes strong locations that have been trading for years alongside newer, weaker ones, and it says little about how your specific site, at your specific rent, with your specific local competition, will actually perform in year one.
This is not necessarily dishonesty. It is a structural feature of any projection built from an existing network: the franchisor has every incentive to show you the range that makes the opportunity look viable, and none to volunteer that the bottom quartile of their franchisees is struggling. The way past this is to ask for actual, not projected, figures from franchisees in sites comparable to the one you are being offered, and to run your own numbers independently of the brochure.
Run the numbers
Enter the monthly income you need after tax, and the franchise's fee percentages from the disclosure document. The calculator grosses up your income target for income tax, then works out the turnover the business must generate once the franchise royalty, advertising levy, food cost, staff cost and rent are all accounted for. Adjust any figure and the model updates immediately, including a breakdown of exactly where every rand of turnover goes before it reaches you.