According to the FTC franchise rule,a franchisor that makes sales or earnings projections based on hypothetical examples must disclose the assumptions underlying the estimates.

Question

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The FTC franchise rule requires franchisors that make sales or earnings projections based on hypothetical examples to disclose the underlying assumptions. This rule helps potential franchisees make informed decisions by understanding the basis for any projections or estimates provided by the franchisor. Failure to comply with this requirement can result in legal action by the FTC.

According to the FTC Franchise Rule,a Franchisor That Makes Sales