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Franchises and Business Opportunities

Business Start Up Guides

Franchises and Business Opportunities

Want to be your own boss? A franchise or business opportunity may sound appealing, especially if you have limited resources or business experience. However, you could lose a significant amount of money if you don't investigate a business carefully before you buy. By law, franchise sellers must disclose certain information about their business to you, the buyer. This guide provides helpful advice on buying and evaluating a franchise and information on how to avoid common scams.

Evaluating Opportunities

  • Consumer Guide to Buying a Franchise
    The Federal Trade Commission provides advice on avoiding costly pitfalls before buying a franchise.
  • Could Biz Opp Offers Be Out for Your Coffers?
    Under the FTC Franchise Rule, most potential business purchasers have the right to receive information about the earnings potential of a business opportunity. Most legitimate business opportunity promoters don't hesitate to give this information. This guide helps new business owners how to understand, spot, and avoid fraudulent business opportunities.
  • Guide to Franchises and Business Opportunities
    Provides practical information about some common business opportunity scams; how to spot, stop and avoid them; and how to file a complaint if you think you've experienced a fraud.
  • Answering the Knock of a Business 'Opp'
    Learn how to evaluate the claims made by business opportunity sellers, and avoid scams and costly mistakes.

Franchise and Business Opportunity Rule

The Federal Trade Commission's Franchise and Business Opportunity Rule requires franchise and business opportunity sellers to give you specific information to help you make an informed decision. The following resources explain your rights as a buyer, and the information the seller is required to supply.

Information for Buyers

In addition, it's important you know which rules apply to the company selling you the franchise. The more you know about their requirements, the better informed you are when evaluating their opportunities.

Information for Sellers

Information on Specific Opportunities

These helpful guides from the Federal Trade Commission provide helpful advice on how to avoid common scams.

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Franchises and Business Opportunities