Twisted Dipsy Pretzels Inc.offers entrepreneurs the opportunity to operate a franchise under the Twisted Dipsy trade name as a member of a select group of dealers that engage in the retail pretzel-concession business.To potential investors,Twisted Dipsy makes earnings claims.For those claims,the franchisor must have

Question

Quizplus · Accepted Answer

According to the Federal Trade Commission's Franchise Rule, franchisors must have a reasonable basis for any earnings claims they make to potential investors. This basis must be based on actual data or other supporting evidence, not solely hypothetical or unsubstantiated claims. Therefore, the best choice is B, a reasonable basis.