Fact Pattern 26-1
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.
-Refer to Fact Pattern 26-1. Jumbo Juice makes earnings claims to potential investors. For those claims, the franchisor must have

Question

Fact Pattern 26-1 
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.
-Refer to Fact Pattern 26-1. Jumbo Juice makes earnings claims to potential investors. For those claims, the franchisor must have

Quizplus · Accepted Answer

The franchisor must have a reasonable basis for any earnings claims made to potential investors. This means that there must be a factual basis for the claims, such as historical earnings data from existing franchisees, and that the claims must be reasonable and not misleading.