eSports Inc. offers entrepreneurs the opportunity to operate a franchise under the eSports trade name as the owner of a game-playing venue. To possible franchisees, eSports makes earnings claims. For those claims, the franchisor a. can have a hypothetical basis. b. can have any or no basis. c. must have an actual basis. d. must have a reasonable basis.

Question

Walter Walter

Business

1 August, 03:28

eSports Inc. offers entrepreneurs the opportunity to operate a franchise under the eSports trade name as the owner of a game-playing venue. To possible franchisees, eSports makes earnings claims. For those claims, the franchisor a. can have a hypothetical basis. b. can have any or no basis. c. must have an actual basis. d. must have a reasonable basis.

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Russell Whitehead · Answer 1

d. must have a reasonable basis.

Explanation:

eSports Inc. offers entrepreneurs the opportunity to operate a franchise under the eSports trade name as the owner of a game-playing venue. To possible franchisees, eSports makes earnings claims. For those claims, the franchisor must have a reasonable basis.

While no certain definition for what is meant by ''reasonable basis'' exists, by explanation the examples that have been provided is that such reasonable basis for making claims by the franchisor, has been identified to be sales value, number of outlets, number of years the outlet has been open etc