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16. Fact Pattern 36-1 Liquidy Shakes Inc. Offers entrepreneurs the opportunity to operate a franchise under the Liquidy Shakes trade name as a member of a select group of dealers that engage in retail milkshake sales. Refer to FACT Pattern 36-1. To potential investors, Liquidy Shakes must disclose a. The value of the franchise b. The estimated profitability of the franchise c. All of the choices d. The range of goods and services included 17. Fact Pattern 36-1 Liquidy Shakes Inc. Offers entrepreneurs the opportunity to operate a franchise under the Liquidy Shakes trade name as a member of a select group of dealers that engage in retail milkshake sales. Refer to FACT Pattern 36-1. To potential investors, Liquid Shakes must provide a. None of the choices b. Actual carnings figures c. Projected eamings figures d Hypothetical earnings figures 18. Fact Pattern 36-1 Liquidy Shakes Inc. Offers entrepreneurs the opportunity to operate a franchise under the Liquidy Shakes trade name as a member of a select group of dealers that engage in retail milkshake sales. Refer to Fact Pattern 36-1. Liquid Shakes makes earnings claims to potential investors. For those claims, the franchisor a. Can have a hypothetical basis b. Must have a reasonable basis c. Must have an actual basis d. Can have any or no basis 19. Fact Pattern 36-1 Liquidy Shakes Inc. Offers entrepreneurs the opportunity to operate a franchise under the Liquidy Shakes trade name as a member of a select group of dealers that engage in retail milkshake sales. Refer to Fact Pattern 36-1. Before a franchise contract is signed, Liquidy Shakes must explain a. The laws governing franchising b. All of the choices c. The nature and operation of a franchise d. The contract's termination provisions 20. All of the following are reasons a franchisor may wish to maintain some degree of control and supervision over the franchise, except a. b. c. d. To avoid liability under the doctrine of respondeat superior To establish certain standards for a facility To maintain a certain level of food quality To protect the franchise's name and reputation

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