Frank enters into a written franchise agreement to open a Grande Burrito store. Grande Burrito represents that
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Question:
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.
Related Book For
Microeconomics Theory and Applications with Calculus
ISBN: 978-0133019933
3rd edition
Authors: Jeffrey M. Perloff
Posted Date: