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Asked by Cassi Crews on May 14, 2024

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

Deception

The act of misleading or tricking someone into believing something that is not true, often for personal gain.

Franchisor

A business entity that grants another party the right to operate a business using its trademark, products, and business model.

Prospective Franchisee

An individual or entity considering the acquisition of a franchise license to operate a franchised business.

  • Master the legal frameworks, rights, and duties that govern franchising.
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KAYLEY OSBORNEMay 21, 2024
Final Answer :
True
Explanation :
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.

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