Which of the Following Data Must a Franchisor Disclose If

question 81

Multiple Choice

Which of the following data must a franchisor disclose if the franchisor makes sales or earnings projections for a potential franchise location that are based on the actual sales, income, or profit figures of an existing franchise?

• A) contract details of the franchisor and the existing franchises
• B) management methods that have been adopted by the existing franchises
• C) the number and percentage of its actual franchises that have obtained such results
• D) any sales or marketing strategy employed by the franchisor in acquiring such results

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Definitions:

Affirmed

A legal term denoting that an appellate court has agreed with and confirmed the decision of a lower court.

Trial Court

Serves as the initial venue for adjudicating disputes where factual determinations and legal issues are addressed, often involving a judge and sometimes a jury.

Affirm Decision

A judicial ruling where an appellate court agrees with and upholds the decision made by a lower court.

Lower Court

Courts of limited jurisdiction, such as municipal or district courts, that handle less significant legal matters than higher courts.