If a Franchisor Makes Sales or Earnings Projections Based on Hypothetical

question 12

Multiple Choice

If a franchisor makes sales or earnings projections based on hypothetical examples, the franchisor must ________.

• A) display a cautionary statement that warns against misuse of the franchisor's intellectual properties
• B) disclose the assumptions underlying the estimates
• C) register the disclosure document with the FTC prior to its use
• D) state that all data disclosed is only hypothetical and that actual data will be made available at the earliest

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Definitions:

Specialized Scuba-Diving Suit

A suit designed specifically for scuba diving, offering protection and thermal insulation to the diver.

Patent Infringement

The act of utilizing patented technology, process, or product without permission from the patent holder.

Compulsory License

A government-granted permission allowing someone else to produce a patented product or process without the consent of the patent owner.

Industrial Design

The professional practice of designing products used by millions of consumers around the world, focusing on the physical appearance, functionality, and manufacturability of the product.