Question: TIP Tech has started franchising its battery stores around the country. One of the company's franchisees does exceptionally well, making $ 1 million in profits
TIP Tech has started franchising its battery stores around the country. One of the company's franchisees does exceptionally well, making $ million in profits each year. The average store, however, only makes a profit of $ per year. TIP Tech heavily touts the highearning store in its franchise disclosure document. The document tells potential franchisees they could make $ million per year, while failing to mention that the average franchise makes significantly less annually. If TIP Tech is found to have violated disclosure laws, all of the following penalties could be imposed, except:
the government could fine TIP Tech.
TIP Tech could be prohibited from entering into any new franchise agreements.
TIP Tech could be forced to repay any franchisees for damages incurred because they relied on the misleading franchise disclosure document.
the government could force TIP Tech to cease operations.
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