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.
-Jumbo Juice makes earnings claims to potential investors. For those claims,the franchisor

Question

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The franchisor must have a reasonable basis for any earnings claims made to potential investors. It is illegal for a franchisor to make false or misleading earnings claims to entice franchisees to invest in the franchise. Therefore, the franchisor must provide reasonable data or explanations for any earning claims they make.