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Franchise Law (Eanings Claims)

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M

MJ23

Guest
What is the name of your state? NY

My question is in regards to Franchise Law and Earnings Claims. If a company has no earnings claims disclosure in item 19 and is asked about earnings the safe answer is not to go down that trail. But I would like to give a response to see what I can and cannot say. I sell vending machines and Feedback would be greatly appreciated.

My Response.

Mrs. Jones because our company has elected not to provide that type of information in item19 of our disclosure agreement I cannot give you any type of earnings claims or projections of what you can expect to do that would be illegal. But if you have a goal of how much you want to make in the first year I can tell what each unit needs to produce for you to reach that goal. How much would you like to make in the first year. How many units would you be purchasing? Well you would need each unit to generate an average of $x to reach that goal. This is not an estimate of what your actual results would be but based on simple math of multiplication and division.

Is this illegal if no earnings claims are stated in item 19 of the disclosure.


Thanks


Mike B
New York
 



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