How can I tell if a pitch's income is the best case, not average?
Research question: How can a reader tell whether an income figure in a seller pitch is a best-case example rather than a typical average?
The records show that an illustrative income table counts as a financial performance representation under the FTC definition 1. Under 16 C.F.R. §436.5(s), a franchisor may not make such representations about past or future outlet performance unless it discloses them in its franchise disclosure document 4. One example company says its franchisee-collected data is not necessarily complete and accurate, so it leaves income representations out of its disclosure document 2. The records do not explain how a reader can separate a best-case example from a typical average, so this question is only partly answered 34. The newest fact is dated July 7, 2008, about 18 years before October 2026 1.
Sources
"The term includes as chart, table, or mathematical calculation that shows possible results based on a combination of variables."CORRESP Geeks On Call Holdings, Inc. (CIK 0001403283) 2008-07-08
"financial performance data collected from franchisees is not necessarily complete and accurate"CORRESP Geeks On Call Holdings, Inc. (CIK 0001403283) 2008-07-08
"We do not make any representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised outlets."CORRESP Geeks On Call Holdings, Inc. (CIK 0001403283) 2008-07-08
"16 C.F.R. §436.5(s) prohibits a franchisor from making any financial performance representations about the future or past financial performance of company-owned or franchised outlets, unless the franchisor provides financial performance disclosure in its franchise disclosure document"CORRESP Geeks On Call Holdings, Inc. (CIK 0001403283) 2008-07-08
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