Frank enters into a written franchise agreement to open a “Grande Burrito” store. Grande Burrito represents that Frank will realize at least $500,000 in gross sales during his first year. During Frank’s first year he only brings in $83,000 in gross sales. What FTC Franchise Rule has most likely been violated?

A. There was not a reasonable basis for the gross sales representation.

B. Grande Burrito did not indicate whether the anticipated gross sales were based on actual data or hypothetical examples.

C. None of the above.

D. a. and b.

Answer rating: 100% (QA)

1 A and b Neither the data provided above is clarified if i... View the full answer