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Want to invest in a business opportunity? Before doing so, read these facts.
What is a Busines...
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Want to invest in a business opportunity? Before doing so, read these facts.
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What is a Business Opportunity?
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All franchises are a business opportunity, but all business opportunities are not franchises. A business opportunity, in the simplest form, is the sale or lease of a product or service that enables the purchaser to start their own business. It is not a franchise and it is not an independent business because the licensor (seller) assists the licensee (purchaser) in finding a suitable location to sell the product or service.
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Business Opportunities and Traditional Franchises
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A business opportunity is different from a traditional franchise because it doesn't involve a trademark and the licensor (seller) offers location assistance. A business opportunity offers a lower fee than a franchise and doesn't include royalty payments, but business opportunities may receive less training and marketing support. Business opportunities also are less time demanding than a franchise.
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Protecting Yourself from Fraudulent Business Opportunities
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If it sounds too good to be true, it probably is. Don't get sucked in by "get rich" schemes. Research the company and have a lawyer to review any documents you receive.
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Proposed New Guidelines for Disclosure Documents
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The <a href="http://www.ftc.gov">FTC</a> has proposed a new rule that requires all business opportunities, regardless of the initial fee amount to provide potential purchasers with a disclosure document.
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For more information on franchises, <a href="http://www.franchiseloop.com">visit www.franchiseloop.com</a>
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6/5/08 7:29 AM
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