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Are The Franchise Broker's Earnings Claims Reliable?


I would take all numbers that you hear or see that are presented by a franchise or a broker with a big grain of salt. Most of the franchisers know that being misleading or fraudulent with numbers is where they're most vulnerable later. So they'll be very careful, but the point is, you cannot rely on numbers and if you do get numbers, you have to be careful that they're not screwed in some way. Somebody can tell you accurate numbers, but it's misrepresenting reality. Numbers do lie. You need to be aware that any earnings claims are to be presented in item 19 of the FDD, and you will also sign as part of the FDD, and integration clause. Also known as a merger clause. That says anything that's contained outside this written agreement, you can't count on it. So if you were told something, doesn't matter because it's not in this agreement. You have to be very careful with numbers.

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