Fact Pattern 26-1
Jumbo Juice Inc. offers entrepreneurs the opportunity to operate a franchise under the Jumbo Juice trade name as a member of a select group of dealers that engage in retail juice sales.
-Refer to Fact Pattern 26-1. Jumbo Juice makes earnings claims to potential investors. For those claims, the franchisor

Question

Fact Pattern 26-1
Jumbo Juice Inc. offers entrepreneurs the opportunity to operate a franchise under the Jumbo Juice trade name as a member of a select group of dealers that engage in retail juice sales.
-Refer to Fact Pattern 26-1. Jumbo Juice makes earnings claims to potential investors. For those claims, the franchisor​

Quizplus · Accepted Answer

The franchisor must have a reasonable basis for any earnings claims made to potential investors. It is illegal to make false or misleading claims in regard to earnings or profits that can be made through a franchise.

Fact Pattern 26-1 Jumbo Juice Inc. Offers Entrepreneurs the Opportunity to Operate a to Operate