Twisted Dipsy Pretzels Inc. offers entrepreneurs the opportunity to operate a franchise under the Twisted Dipsy trade name as a member of a select group of dealers that engage in the retail pretzel-concession business. To potential investors, Twisted Dipsy makes earnings claims. For those claims, the franchisor must have
A. a hypothetical basis.
B. a reasonable basis.
C. an actual basis.
D. no basis.
Answer: B
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