Ann: Appendix 4E and 30 June 2018 Annual Report to shareholders, page-8

Thanks, there are lots of moving parts here, which makes forecasting future financial performance even more difficult than it already is.

I understand the Gross Profit dynamic, but I am conscious that this company is not a widget manufacturer and that there is a trade-off between its financial fortunes and those of its franchisees.

So, I am some what hyper-sensitive to any signs of franchisee gouge, because when that happens it portends the beginning of the end for the value of the franchise itself, and hence, the very business model of the franshisor.



And in terms of the surplus capital, you say they will keep building dividends, well, that's exactly what I want: Trouble is, they are running low on franking credits and, with the dividend payout ratio now approaching 70% they aren't generating much in the way of fresh franking credits.

And I'm not sure they are of the mind to continue pay dividends that are unfranked (although I'm aware that they have been doing so in recent years).

What I don't want is for the money to start burning a hole in their pockets and thereby prompt them to start looking for acquisitions, because the last time they did that it turned out to be a disaster.