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If you have asked a franchisor this question, you may not have gotten a straight answer (or any at all). The main reason lies in legalities. The Federal Trade Commission (FTC) has strict requirements for franchisors about how they can present earnings statements to franchisees. Earnings claims must be provided in writing in the Uniform Franchise Offering Circular (UFOC) and all material information must be accurate and substantiated. All assumptions or qualifications of data must be clearly labeled as such in the UFOC. Franchisors get nervous when answering questions about earnings because if they misrepresent themselves, even unintentionally, they could get into legal hot water.
Read the full story on AllBusiness.com.
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