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:

Sample Size

The number of observations or data points that constitute a sample from a population.

Test Statistic

A value calculated from sample data during a hypothesis test used to decide whether to reject the null hypothesis.

Experimental Statistic

A statistical measure derived from experimental data used to analyze and interpret the results of a study.