Ralph is interested in buying a franchise from Sparkle Beverages Inc. For Ralph to make an informed decision concerning this purchase,Sparkle Beverages must disclose in writing or in electronic form

Question

Quizplus · Accepted Answer

Sparkle Beverages must disclose material facts such as the basis of projected earnings figures in writing or electronic form to enable Ralph to make an informed decision concerning the franchise purchase. This is mandated by franchise laws and regulations aimed at protecting franchisees from fraud or misrepresentation. Therefore, option A (general estimates of costs and sales, but not the basis for them) and option C (no information) are not appropriate, and option D (start-up requirements but not renewal conditions) is not comprehensive enough.

Ralph Is Interested in Buying a Franchise from Sparkle Beverages