Which of the Following Is True About the FTC Franchise

Which of the following is true about the FTC franchise rule with respect to earnings projections made by a franchisor in materials provided to prospective franchisees?

A) Because they are inherently misleading,financial projections cannot be made.
B) Any earnings projections must be based on the actual results of an existing franchisee.
C) Any earnings projections cannot be based on an actual franchisee and must be based on a hypothetical franchisee and be relevant to the franchisee receiving the information.
D) The franchisor can provide projections based on either actual or hypothetical franchisees,but if projections are provided,certain additional disclosures must be made.
E) The franchisor can provide projections based on either actual or hypothetical franchisees,but can be liable for damages to the franchisee if the results are not reasonably achievable.