To prevent deception, all representations by a franchisor to a prospective franchisee must have a reasonable basis at the time they are made.

Question

Quizplus · Accepted Answer

This is because franchisors are required to provide accurate and truthful information to prospective franchisees to enable them to make informed decisions. Misrepresentations can lead to legal consequences and undermine the trust in the franchising relationship.

To Prevent Deception, All Representations by a Franchisor to a Prospective