Taco-Taco Pizza, Inc., offers entrepreneurs the opportunity to operate a franchise under the Taco-Taco Pizza trade name as a member of a select group of dealers.To possible investors, Taco-Taco Pizza makes claims about the earnings potential of a franchise.For those claims, the franchisor must have

Question

Quizplus · Accepted Answer

The franchisor must have a reasonable basis for the claims they make about the earnings potential of a franchise. This means that they should have some evidence or data to support their claims, such as financial statements or information from other similar franchises. Without any basis, the claims would be unfounded and potentially misleading to investors.